RealtyBox Media Online reports that leading real estate developer, 7-Fifteen Capital Limited, has raised concerns over the impact of economic instability on Nigeria’s luxury housing market, warning that exchange rate fluctuations and rising inflation are driving up construction costs and slowing sector growth.
The company made this known during the unveiling of its new Lagos office, where its Chief Executive Officer and Co-Founder, Tope Adekoya, stressed that sustained economic stability remains crucial for the expansion of the country’s luxury real estate industry.
According to Adekoya, the sector has faced significant challenges over the past six years due to persistent foreign exchange volatility and inflationary pressures, which have pushed construction costs to unprecedented levels.
He explained that projects previously estimated at about $10 million now require almost twice that amount because of the industry’s heavy dependence on imported building materials.
“The luxury real estate market has experienced difficult conditions because of exchange rate instability and inflation. Developers must embrace innovative financing options and focus on delivering functional, right-sized homes that align with market demand,” he said.
The real estate executive noted that the future of Nigeria’s luxury housing segment will largely depend on government economic policies and exchange rate stability, factors he said would give developers greater confidence in planning and executing projects.
Adekoya further disclosed that the company’s decision to establish a presence in Lagos followed the success of its Abuja developments, including Myari Lakeside, The Residence and The Cove Lakeside. He added that the firm remains focused on delivering affordable luxury housing across Nigeria.
Also speaking at the event, Deputy Chief Executive Officer and Co-Founder, Adesuwa Belo-Osagie, revealed that the company plans to deepen its social impact through its foundation by supporting education initiatives and creating opportunities for young Nigerians.
On his part, Group Chief Executive Officer, Tolu Anyakoya, said the company’s developments are designed to provide residents with quality living experiences through reliable infrastructure, including electricity, water supply and security.
He disclosed that 7-Fifteen Capital currently has about 10 estates under development in Abuja and two projects in Lagos, located in Ikoyi and Banana Island.
Meanwhile, Babajide Sanwo-Olu highlighted the critical role of public-private partnerships in driving urban development, noting that governments cannot build world-class cities alone.
The Lagos governor said while the private sector provides capital, innovation and speed, governments are responsible for creating the right policies, planning frameworks and enabling environment for sustainable growth.
He urged developers and investors to pursue projects that will create long-term value and improve future generations, describing Lagos as a city filled with opportunities powered by collaboration, innovation and investment.
Why This Matters
With inflation, foreign exchange pressures and rising construction costs continuing to affect the real estate sector, industry stakeholders say policy consistency and economic stability could determine whether Nigeria’s luxury housing market rebounds or remains under pressure in the coming years.
As reported by RealtyBox Media Online, developers are increasingly looking for a more predictable business environment to sustain investments and deliver quality housing projects.
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