Why developers delay, abandon building projects

Experts have lamented that the rising cost of building materials is derailing projects, causing developers to cut corners and abandon projects in the country.

Speaking at the handover ceremony of the Cello 1 luxury apartments developed by Leadroitt Realty in Lagos, the company’s Managing Director, Gbemisola Ojerinde, said despite the challenges they face to finish their project, they have stuck to their promise of quality project delivery.

Ojerinde said: “Despite the high inflation levels, we delivered the promised quality on time. Cello 1 is sold out and people that bought it made over 100 per cent Return on Investment (ROI) on their investment.”

She added that Cello two and three, all located within the Lekki-Ikate axis as well, will be delivered between now and early next year. She urged prospective homeowners to key into the projects and make over 100 per cent ROI. She said people are usually wary of off-plans because developers often deliver less than what was promised, saying that is not the case with them.

“Real estate in Lagos will continue to appreciate and now is the best time to key into it. Some are afraid of government policies and their property being demolished or taken over but with my experience in property law, your property is safe with us. We paid thorough attention to all areas of this development and it shows.”

Also, Senior Investment Advisor with Leadroitt Realty, Damilola Adeniran, said the cost of materials is four times more expensive than they were just two years ago, which has affected the delivery of many projects in the country.

On the alarming frequency of building collapse in the country, he said all developers must undertake due diligence, use the right materials and skilled workers, as well as obtain approvals to prevent any mishap. “Some developers cut corners by using inferior materials and labour, this is dangerous and such actions could lead to weak structures and building collapse,” he said.