The real estate market in Nigeria is not in recession, says Peter Coker, the Managing Director of PREVIS, a special purpose vehicle of James Cubitt Developments. He believes that prospective investors and property up-takers are suspicious of the dubious claims of some developers.
The Nigerian property market has experienced a slowdown in recent times, obviously because of the cash-crunch in the economy, and this is compelling prospective buyers and investors to take a second look at the proposals shunned out by developers, said the Managing Director of PREVIS, Mr. Peter Coker.
PREVIS is a special purpose vehicle of James Cubitt Developments’ that was formed recently to deliver a quality stock of Real Estate properties to the Nigerian working professional and mid-sized companies, according to Coker.
“The low uptake we are seeing on many properties now is not indicative of slowing demand. People have simply had enough of false developers and their false claims,” Coker said, while introducing the new company.
He said “The demand for home ownership in Nigeria far outstrips supply. With the national housing deficit currently pegged at 17,000,000, it is little wonder that developers are springing up everywhere with all sorts of schemes.
“Given that there is no real barrier to setting up a development company and no agreed standard for what it takes to be a developer in Nigeria, the market is currently highly fragmented, and gets worse as you go from the premium to the mid-market and to low income housing.”
According to him, “With such a high deficit and no proper guideline for developers, the government is constantly playing catchup and is not sufficiently staffed to enforce building approvals and standards. So many people have lost money and even lives as they have been subjected to various schemes from unseasoned and unprofessional developers.
“In recent times, however, reputable construction and development companies have begun to take an interest in the middle income housing market, and are helping to set standards for the delivery of housing to this segment.
“One of such companies is James Cubitt Developments, which recently formed a special purpose vehicle named PREVIS,” adding that the company is coming to the real estate market with Premiere Apartments and Residences in Lekki and a Builder’s Mall at Ikota, all in Lagos.
“PREVIS is making sense of property ownership by focusing on ease of access to quality lifestyle homes,” Coker said. “The number one consideration when acquiring real estate is not how cheap it is but its potential as a store of value. If you build a cheap house that collapses within a year or two, you lose value; if the house is no longer tenantable within five years, you lose both income and value,” he further explained. “Unfortunately, this is what we have been witnessing in the mid-market.”
He said being a member of James Cubitt companies in Nigeria, PREVIS enjoys a heritage of 60 years in Nigerian Real Estate and brings that experience to bear on the home delivery value chain.
The company, he said aims to set new standards of housing delivery, from design to development, fit outs and facility management. Their developments will be offered on flexible payment plans that will disrupt current models in the Nigerian Real Estate Market.
“Our Pay Rent – Own Property product has been called ‘too good to be true’,” said Tolulope Olorundero, the Communications and Media Relations Manager for PREVIS Developments. “The product will help first time home owners to become property owners in well designed and managed estates by simply paying their rent.
People will be in a position to acquire any property in our schemes by paying rent with no large upfront payment requirements and no hidden charges. We are true developers and have no interest in owning the properties and earning rent. We aim to grow fast and become central to the Nigerian real estate story.”