Rising cost of building materials affecting real estate developers – Fasunwon | Prestige Real Estate News

Chief Executive Officer , HONTAR Project Limited, Mr Deji Fasunwon, has decried the rising cost of building materials in the country at its attendant backlash on real estate developers .

Speaking at the official opening of Kingsize Place and Larry Place buildings, in Oregun, Ikeja area of Lagos at the weekend, Fasunwon  lamented that  developers worked at a loss , at the time projects were rounding up , due to forced increases in production cost .

He however explained that  the housing project consisting  32 housing units , including four-bedroom twin houses and one detached mansion, was completed within 24 months.

The housing units were : 32 townhouses, four-bedroom townhouses with a Boys Quarter, a detached house and a five-bedroom detached house. Additional amenities include a tuck shop for immediate needs and a playground.

Lamenting the challenges faced by developers at the moment, he said, “Doing real project in Nigeria has been very challenging in recent times with incessant increase in cost of construction without commensurate returns for the developers. You’ll come into a project with a budget and before you go half way into the project the prices have gone crazy and by the time you are rounding up, you are practically at zero or at a loss.

“Now, we are in an environment where funding is so hard to cover and so some of us have to bring in  ways of raising this fund from people who are buying to do this”

“Notwithstanding the situation, we have stood on the path of honour, despised the odds and rather embraced value creation for our clients and partners.

“Today marks a remarkable milestone in the life of our organization as we are commissioning two projects on the same day; Larry’s Place, Opebi and Kingsize Place, Oregun, both in Ikeja. By these, we have today delivered a total of four hosing estate projects comprising of 67 housing units at choice locations on the mainland and island of Lagos”.

Fasunwon who  informed that the project  was conceived as an idea in 2020, with a vision  to create everyday lifestyle of comfort and pleasant experiences for its customers, disclosed that  so far, “we have tried to achieve that by providing real estate solutions through quality and timely delivery of our projects and superior customer service.

“ Within the short period of our existence, we have been able to secure the following projects; Marshal Mews Magodo, Rex Apartments Lekki, Kingsize Place Oregun-Ikeja, Larry’s Place Opebi, Ebenezer court Oregun-Ikeja,  Richville Towers Lekki, and, The Pretige-Oniru. Of which we have delivered two and delivering two in the first quarter of 2024 and few units still available at the Richville TowersLekki, and, The Pretige-Oniru Projects.

He therefore ,appealed to the government to give developers an  enabling environment where funds were made “ available for developers, especially those who have a track record. It will  make things easy for us and people purchasing.

Applauding HONTAR  Project Limited for the speed at which the project was delivered, the company’s lawyer,  George Ikoli., a Senior Advocate of Nigeria, SAN  said the speed was what stood the company out among its contemporaries.

He said “ It’s actually amazing that such can be delivered within time and within budget. It’s a  big  project and it’s not easy to complete a project of this magnitude within such a time and budget”.

One of the clients , Mrs Rhoda Afolabi, who spoke with journalists, disclosed that she had been defrauded by many developers in the past. She however said in her meeting with the CEO of HONTAR Project Limited her perspective  about Nigerian developers.

She said, “  I also do development in America, specifically in Atlanta. I’m willing to grow with the CEO  and give him all the support needed”., she stated.