When the 21-storey luxury highrise collapsed in Ikoyi, Lagos a few weeks back, many real estate players predicted that the unfortunate news of the collapse and loss of lives will most likely have negative repercussions on the sale of apartments in the many highrise and skyscrapers dotting the skyline of Ikoyi, Banana Island and Lekki. They are right. It has.
Days after the incident, many owners of highrises in these areas on the Island are recording a sharp drop in sales of apartments.
The collapse of the Gerrard Road highrise sent fear across the industry and many investors have slowed down purchases.
An insider revealed that the natural and immediate reaction of many rich Nigerians following the Ikoyi incident has been a Wait-and-see or Hold on strategy.
National Daily gathered that the collapse of the highrise belonging to late Femi Osibona, the MD/CEO of Fourscore Homes, has rendered the luxury highrise property market unattractive for now. Also noticeable is the fact that the Occupancy rate of many of these luxury highrise structures has been on the decline as a result of the collapse of the highrise.
We hear many Nigerian banks are also now scared of investing in highrise buildings for now.
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Insiders reveal that the collapse of the Ikoyi highrise is beginning to discourage local and foreign investors from investing in the luxury highrise sector. It is also beginning to change the confidence many Nigerians have in local professional builders. Many developers believe that the incidence would no doubt discourage investments in the luxury high-rise property market and it will erode the confidence of institutional and foreign investors in the luxury high-rise property market.
Many feel the real issue now is how fast the real players and Government can come together and restore confidence back to the high brow property sector.
They feel once adequate and serious steps are taken to prevent a recurrence, it will promote much-needed confidence in the industry.
But many real estate professionals have not lost hope. They feel the real estate market can still bounce back within a short while.
There are so many property developers who are unhappy that the collapse happened at a time like this when there is a big boom going on in the highrise sector of the industry.
This can be seen in the continuing springing up of highrises and skyscrapers on the Island. The worst hit are those involved in the sales and development of luxury homes and apartments, serviced flats, mansions, duplexes and bungalows. Right now, there are a lot of fully serviced highrise luxury apartments with world-class amenities all over the Island. There are so many highrises in Ikoyi with luxury residential apartments. The same thing in Banana Island and Lekki, where you have so many highrise residential apartments. All these apartments point to a high taste of luxury.
Over the last few years, highrises have been springing up all over, these areas. These highrises offer apartments of a luxurious residence, that define the style of living, elegance and beauty and offer great Comfort and Class.
Most, if not all have swimming pools, Gymnasium, well-paved access and internal roads, 24 hours security with CCTV, Rooftop gardens, ample parking spaces, panoramic elevators, terrace gardens exotic landscaping.
Many go for N370 million and above, with instalment plan options spread over 24 months.
Those affected the most are these real estate companies involved in urban luxury real estate development and luxury flats.