Operators in the real estate sector say most firms have reduced their cost of operations considerably in a bid to survive rising economic crisis in the country which has slowed developments.
The situation, according to the firms, is such that most of them have taken into consideration costs arising from fuel price hikes and inflation which have impacted businesses negatively.
“If we were spending N1 million naira on mobility before, now it’s about N3 million. This has caused our cost of operation to rise significantly. We can’t put all our vehicles on the road anymore and we now have to put into consideration how we can run and be cost-effective,” William Aimakhu, managing director and chief executive office, PWAN Perfection, said.
“You cannot start increasing property prices because they are still fairly the same, but not marching up with the cost of sales. This is a particular challenge, but we expect that, with the new government, things will turn around,” she said.
Aimakhu said that despite the economic challenges, the company had been able to bridge the gap by increasing property acquisition in the premium market.
“Now we have excess in the market. Our overhead is there but we have been able to leverage on more properties we have and have our expansion going on daily. People still buy the property and overcome the challenges. We have seen the sector thrive amid all challenges,” he said.
Speaking on the event of the day held at Marriot Hotel Ikeja, the MD said the company aimed to drive hard work and consistency by rewarding the time and effort the sales agents put in keeping the business running.
The company gave out a brand new SUV Ford Explorer 2012 limited edition and a Toyota Corolla to deserving realtors while others went home with luxury incentives like television, mobile phones and others which were aimed to enhance their trust in the brand.
“We are an affiliate of the PWAN Group as a whole and we have a system where we have independent marketers who take the system and market it and get their commission. This way, we have been able to employ more people which is a way of tackling unemployment in the country,” he said.
On the year’s projection, the managing director said the company had properties under construction and hoped to hand over keys to buyers before the end of the year despite the economic situation of the country.
He commended the services of the realtors who have worked to ensure the success of the company while encouraging them to do more.
“This event is not just about celebration. It’s about recognising the impact you’ve made on the lives of countless individuals and families. It’s a reminder that success is not a solitary pursuit, but a collective journey that thrives on collaboration, innovation, and shared aspirations,” he noted.
He disclosed that there were plans to expand more within and outside the country, providing affordable land and housing to ensure every single Nigerian owns a piece of property and bridge the housing deficit in the county with a long-term plan of having about a thousand units in the country in the next three years.