Rising Construction Costs, Inflation Driving Property Prices – JustOne Homes CEO

ABEOKUTA — The Managing Director and Chief Executive Officer of JustOne Homes Ltd, Taiwo Idowu, has attributed the continued rise in property prices across Nigeria to increasing construction costs, inflation, exchange-rate fluctuations, infrastructure expenses and growing demand for real estate.

Idowu, who spoke against the backdrop of rising house rents and growing concerns over housing affordability, said the increase in property values was largely a reflection of the prevailing economic realities confronting developers and investors.

According to him, the fundamentals of demand and supply remain central to the real estate market, particularly as Nigeria’s population continues to grow while the quantity of land available for development remains finite.

He explained that the cost of constructing a house had increased significantly over the past few years, citing cement, steel, finishing materials, labour and logistics among the major cost components affected by inflation.

Idowu, however, said the situation should not result in an industry that completely excludes ordinary Nigerians from property ownership.

He urged developers to explore innovative approaches, including flexible payment structures, affordable housing solutions and strategic developments, to make property ownership more accessible.

The JustOne Homes CEO also identified the growing demand for real estate as a major factor behind the sector’s attractiveness, saying the industry had become a major investment destination because of its potential for wealth creation and long-term appreciation.

He nevertheless cautioned prospective investors against rushing into property transactions solely because of the perceived profitability of the sector.

According to him, investors must first understand their purpose for investing, the prospects of the location and the credibility of the developer or seller before committing their resources.

He advised investors to examine infrastructure plans, major road networks, industries, institutions, commercial activities and population growth around a prospective investment location.

Idowu further stressed the importance of proper documentation and title verification, warning investors against being lured into property purchases simply because of attractive prices.

“Inflation, the rising cost of construction materials, exchange-rate fluctuations, infrastructure costs and the general cost of doing business have all contributed to the increase in property prices.

“The first thing I would advise anyone to consider is location. But location is more than simply asking whether a place is popular today. Investors should look at where development is going.

“Never invest in property simply because the price is attractive. Understand what you are buying and verify the title and if there are commitments or litigations on the land,” he said.

He also advised prospective buyers to investigate the track record of developers, visit their previous projects and physical offices, and conduct independent due diligence before making financial commitments.

On the challenges of fraud in the real estate sector, particularly those affecting Nigerians in the diaspora and foreign investors, Idowu said lack of verification and deliberate fraudulent practices had continued to undermine confidence in the industry.

He said some unscrupulous operators sell properties they do not own, make unrealistic promises or present unverified documents to unsuspecting investors.

To address the problem, he called for greater transparency and professionalism among industry practitioners, while urging investors to independently verify companies, property locations and documentation before concluding transactions.

“Trust should be supported by transparency,” he said, adding that technology could also assist investors through virtual inspections, digital documentation, regular project updates and effective communication channels.

Idowu said JustOne Homes had adopted value creation, transparency and client confidence as key components of its business strategy as it expands its operations in Ogun State.

He explained that the company was not merely interested in acquiring land, subdividing it and selling plots, but in creating developments capable of generating long-term value for investors and host communities.

He cited The Gateway Boulevard and Asiko Bungalows in Abeokuta, as well as JustOne Villa, a student hostel project in Ijebu-Ode, as examples of the company’s approach to real estate development.

“Our thinking goes beyond selling land or units of houses. We are looking at creating an environment and a community that can support better living, investment and future development,” he said.

The CEO identified Ogun State as a strategic market, citing its proximity to Lagos, expanding population, infrastructure development, industrial activities and emerging economic corridors.

He said the increasing congestion and rising property prices in Lagos would continue to make Ogun an attractive alternative for residential, commercial and industrial development.

He added that the company’s expansion into the state was not driven merely by the presence of other real estate businesses, but by its assessment of locations where infrastructure, economic activities and population growth could create genuine long-term value.

Idowu said JustOne Homes was committed to contributing to the development of communities through employment creation, infrastructure development and stimulation of local economic activities.

He noted that the real estate sector had the capacity to create opportunities for construction professionals, artisans, suppliers, service providers and young people.

On the company’s future plans, Idowu said its immediate priority was to properly deliver its existing projects and establish a strong presence in Ogun State rather than rushing to announce numerous developments.

He said the company would, in the long term, pursue innovative real estate solutions across residential developments, strategic land investments and other property-related projects.

“Ogun State presents enormous opportunities, and I believe we are only beginning to see its full potential.

“Our vision goes beyond selling land and houses. We want to contribute to the development of better communities.

“Our goal is not simply to become bigger. Our goal is to become better,” he said, stressing that the company wanted to build a brand associated with integrity, innovation, excellence and meaningful value creation.