Operators in Nigeria’s real estate sector have expressed concerns over the recent hike in prices of cement and other building materials. They warn that this increase could lead to a drop in building standards of houses across the country. The rising costs of production are expected to reduce company profits and impact the overall viability of the sector’s value chain.
The surge in cement prices may force contractors to review contract conditions with project owners. The higher costs of construction materials will likely affect the prices of houses, as companies seek to factor in the increased expenses to arrive at their cost of production and set sales prices accordingly.
The situation poses a dilemma for builders, as maintaining quality may require higher prices for houses, but homebuyers may be unwilling to pay more. This could lead to compromises on the quality of materials used in construction, potentially leading to safety concerns and building collapses.
Industry experts emphasize the need for government intervention to address the rising costs of construction materials. The increase in cement prices not only impacts the real estate sector but also affects other building materials like iron rods and transportation expenses, further straining construction projects.
Opinion: The escalation of cement prices in Nigeria’s real estate sector is a concerning issue that requires careful consideration from both the government and developers. It is crucial to strike a balance between maintaining building standards and ensuring affordability for potential homebuyers. Exploring alternative building materials and construction methods, as suggested by some experts, could be a step towards mitigating the impact of rising cement costs.