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By Maduka Nweke, [email protected]
The current distortions in the foreign exchnage market which have led to frequent fluctuations in currency rates have adversely affected activities in the real estate sector.
Indeed, the exchnage rate of the dollar to the naira, which currently exchanges for N1,850 to $1, has created a lull in the sector becuase most of the materials used for construction are imported. Aside the galloping exchange rates, the price of apartments either for sale or rent has risen astronomically beyond the reach of the average Nigerian civil servant who can no longer pay their house rents as and when due.
As at Wednesday, Lafarge Cement was selling for N10,500 per bag from retailers.
For BUA Cement, it was between N7,900 and N10,500 per 50kg for the retailers while it was between N5,500 to N10,000 for Elephant Cement, retail price per 50kg bag is between N7,200 and N10,500, while wholesale price is between N5,900 and N10,400. Ashaka Cement sells for N7, 900 and N10,500 for retailers while for the wholesale is between N5, 500 and N10,000 respectively.
A bundle of flexible binding wire ranges between N5,300 to N9,000, while a 10 kg roll costs between N43,500 to N59,000. On the other hand, the cost of a bundle of solid binding wire ranges between N6,300 and N8,600, while a 10kg coil costs between N47,000 and N64,000. A tipper of sand costs between N50,000 and N75,000 for five tonnes.
According to Mr. Ladoke Ayinde, who sells plank at Pako market Maza Maza, 40X40 slab tile rose from N2,800 to N4,700, WC from N40,000 to N120,000. He said that in a couple of weeks, the prices of all the building materials will triple except there is an urgent action taken to redress the huge disparity between the Naira and the Dollar.
For Izuchukwu Ugokwe, the Managing Director of Hopelink Business Ventures, prices of building materials cannot be predicted now. A bag of cement that used to cost N5,200 now sells for to N10,000. Zubby Anoliefo, who deals in paint said that a 4 liter gloss paint now cost N9,600 from N6,500 while sartin paint that used to cost N29,800 now sells at N49,000.
The implication, according to Ugokwe, are that fewer people will be the ones building houses. More worrisome is that the cost of renting an apartment will continue to be on the rise. “Prices of building materials have now gone up by more than 50 per cent and we are not sure when the surge will stop, lamenting that Nigerians have dollarized the economy.
“I do not see the magic that will be done to bring the price of building materials down.
“20 tonnes of a tipper of sharp sand was N90,000 but now selling at N148,000 depending on the distance. Some even cost as high as N168,000 depending on the nature of the road. One pan of nail that used to cost N500 now costs N1,550 depending on the make’.
According to Mr. Effiong Daniel, who sells carpentry materials “Sales have dropped by 60 per cent because it is only when you eat that you can remember that your house needs rehabilitation or that you want to build a house. The crisis has assumed a worrying dimension but becuase Nigerians are rugged, we think all is well, only that Nigerians are something else. They don’t take action when such situations present themselves,” he observed.
