Davido gifts Mayorkun a Tesla Cybertruck

Iran-US crisis impacts Nigeria's real estate sector with rising costs and project delays

Experts in Nigeria's real estate sector have raised concerns that the ongoing Iran-US crisis is leading to increased construction costs and project delays. These issues stem from the impact on imported materials, directly affecting costs for operators in the prime market. During a webinar organized by the International Real Estate Federation-Nigeria and Fortren & Company, Mr. Gbenga Olaniyan, Chairman of Estate Links Limited, noted that the period from 2022 to 2025 has seen unexpected price fluctuations. He attributed recent price increases to panic following the closure of the Strait of Hormuz, leading to longer negotiation periods for buyers and a shift towards joint ventures to share risks. Mr. Olaniyan emphasized that much of the current situation is driven by panic among end-users rather than actual cost increases. Ogunniran Hakeem, Chief Executive Officer of Eximia Realty & Co, suggested that current issues are a snowball effect from the COVID-19 pandemic's global supply chain disruptions, further exacerbated by the Russia-Ukraine war, which impacted critical material sourcing like steel. He warned that continued Middle East disruptions could reduce diaspora remittances, a significant funding source for many African countries. FIABCI Nigeria President, Mr. Akin Opatola, stated the forum aimed to help real estate professionals respond strategically to global market changes. World President of FIABCI, Mrs. Lily Chang, highlighted that geopolitical uncertainty makes invest