Accommodation costs’ll keep rising as building expenses soar –Okoro

The cost of accommodation in Nigeria is expected to continue rising as developers grapple with increasing prices of building materials, land acquisition, titling and other expenses associated with property development, Principal Partner of M.I. Okoro & Associates, Dr. Innocent Merckson Okoro, has warned.

Okoro gave the warning during a facility tour of the 16 Alexander Tower, a luxury residential development in Ikoyi, Lagos, organised for members of the Property and Environment Writers Association of Nigeria (PEWAN), alongside project officials and other stakeholders.

He explained that the rising cost of putting up buildings would inevitably be reflected in property prices and rents, as developers and investors seek to recover the huge capital committed to projects.

According to him, property prices are largely determined by the cost embedded in developing the assets, particularly in an environment where construction materials, land, statutory approvals and professional services continue to become more expensive.

“Buildings are constructed to meet the cost embedded in them,” Okoro said, stressing that the trend would continue to put pressure on accommodation costs unless there was a significant reduction in the cost of construction and other development inputs.

He, however, expressed optimism that despite the high cost of property development, well-located and properly constructed assets would continue to provide value for investors over the long term.

16 Alexander Tower

Okoro also described the 16 Alexander Tower as a strong example of the kind of high-end property capable of preserving and growing investors’ wealth in the long run.

The 21-floor luxury residential development, located on Alexander Avenue, Ikoyi, is expected to be completed by December 2027.

During the tour, project officials assured members of PEWAN and other stakeholders that the development was being constructed to meet international safety, structural and quality standards.

Akin Ayankoya, who led the project presentation, said the development was progressing steadily, with construction having reached the 17th floor. Only four additional floors remain to complete the 21-storey structure.

The project, marketed by M.I. Okoro & Associates in partnership with Cappa D’Alberto, comprises 54 high-end residential units designed to cater to the premium segment of the Lagos property market.

Okoro said the project sits on a 4,276.216-square-metre site, with the design focused on maximising available space while ensuring adequate circulation, comfort and functionality for residents.

He said the development was conceived not merely as a residential building but as a lifestyle destination, offering residents access to a range of recreational, wellness, security and concierge services.

Among the facilities planned for the tower are a wellness and recreation clubhouse, infinity swimming pool, modern gymnasium, sauna and spa, squash court, yoga and meditation area, 24-hour concierge and security services, panoramic views of Lagos and dedicated parking spaces for residents and visitors.

According to him, the recreational facilities will be located on the sixth floor to provide residents and their accredited guests with privacy and exclusive access.

Investment Value

Okoro said the strategic location of the project in Ikoyi, combined with the quality of construction and range of amenities, would enhance its investment potential.

He noted that prime property in established locations such as Ikoyi continues to attract demand from investors and high-income residents because of its proximity to major business districts, commercial centres and other key areas of Lagos.

He, therefore, expressed confidence that the development would generate strong rental value and provide long-term returns for investors.

“Quality construction, strategic location and premium amenities are some of the factors that determine the long-term value of a property,” he said.

He added that the developer was committed to delivering a world-class residential tower capable of meeting international standards while further transforming the Ikoyi skyline.

The facility tour provided journalists and other stakeholders with an opportunity to assess the scale and progress of the development, as well as the construction standards being applied to the project.

Okoro reiterated that as construction costs continue to rise, investors and prospective homeowners would increasingly have to contend with higher property prices, making early investment in well-located real estate potentially more attractive as a hedge against future increases.

He said the challenge for developers, however, was to ensure that rising costs did not compromise quality, safety and the overall value delivered to buyers and residents.