Property developers explore new real estate marketing trend
Amid the lull in the real estate business occasioned by economic downturns, some property developers are adopting new marketing strategies to attract prospective homeowners to their projects.
Transactions in the real estate sector had witnessed low purchasing power and difficulties in accessing mortgage loans as well as developers’ inability to secure long-term funds.
The situation resulted to abandoned projects, while completed ones lacked off-takers, leading to high vacancy rate in major cities.
However, some of the major players have remained resolute, adopting new strategies to remain afloat, thereby increasing their liquidity and popularity.
The strategies now popular among the developers include discounts and installment payments or daily, weekly and monthly payment plans. In some cases, subscribers are allowed to pay as low as N1, 500 daily.
A developer said the new strategies are already eliciting desired results from off-takers, who are making enquiries on their schemes.
Developers adopting these strategies include Realty Point Limited, Adron, Revolution Plus and TobyKemsworth Properties limited, which unveiled a new estate in Ijegun with a 15-year mortgage plan.
For instance, Realty Point is offering subscribers opportunity to own a house for N2, 500 at its Bersama project.
The project, a two-bedroom bungalows which can be expanded to three-bedroom, with spacious living rooms are located at Prime Estates in Phase II, Mowe/Ofada, Ogun State, Prime Estate, Igbesa, Ogun State, Roseberry Estate, Alapoti (near Agbara), Ogun State, Prime Estate, “Abuja”, New Karshi, among others.
The Guardian learnt that failure, refusal or neglect to pay any subscriptions attract warnings from the developers. The warning varies depending on the payment plan.
A subscriber will have a seven days for daily payment plan, 14 weeks for weekly and 21 days for monthly grace period. Default may results to a price increase without recourse to the subscriber.
Explaining further, the Managing Director, Realty Point Limited, Mr. Debo Adejana, said subscribers have the opportunity to pay N2, 500 per day or N75, 000 per month.
According to him, installment payments came into being because developers and suppliers want to solve the problem of affordability.
He stressed that the method gives opportunity to many people, who are not qualified for mortgage loan.
Adejana, who is the Chairman, Real Estate Developers Association of Nigeria (REDAN), Southwest zone, said the purpose of the low subscriptions was to draw attention for further enquiries.
According to him, it amounts to scam, when the terms and conditions are not declared to the subscribers upon enquiry before they go into the contract.
“You cannot put all the information in the billboard or you will not get any body to call because you already had all the information”, he added.
Also, Adron is offering one of the lowest payment plans apart from instituting what they call Lemon Friday sale. The plan offers 40 per cent discount on all estates in Ikorodu, Epe, Atan-ota, Ibeju Lekki, Badagry, Ijebu Ode, Shimawa, Abeokuta, Osun, Abuja, Nasarawa and Keffi respectively.
For instance, the firm is offering subscribers as low as N1,500 daily, for Grandview Park and Gardens as well as ₦N3,833 daily for Treasure Park and Gardens.
Adron’s Group Executive Secretary, Mr. Ayodeji Ojo-Omoniyi, said the strategy is in line with the company’s dedication to continuously give their customers opportunities to be homeowners through discounts, royalty rewards and friendly payment plans.
“Customers can pay as low as N25, 000.00 initial deposits and enjoy up to 36 months payment plan on all properties. This means you could make payment at your pace and within your budget because at Adron Homes, for every budget; there is a piece of land for you in all our 24 estates through out the country.
“It is in fulfillment of our mission that we want Nigerians to get houses at affordable price without jettisoning quality”, he added.
For the Chief Executive Officer, Egletek Nigeria Limited, Olalekan Alabi, developers, must evolve a workable flexible payment plans to survive in the recessed economy,
Alabi, an engineer, stressed that the firm has not only adopted a flexible payment plan, but also developed an affordable plan of six to 12 months that can go up to 18 months, which is geared towards reducing the nation’s housing deficits.
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