Hon. (Dr.) Saheed charges Cost Management

The Chief Executive Officer, Managing Director and pioneer of one of Nigeria’s prominent and fast rising real estate firms; Harmony Garden and Estate Development Limited – Hon. (Dr.) Saheed Mosadoluwa Audullahi, has kindly urged his colleagues as well fellow real estate firms to prioritize social amenities that promote healthy living while planning their estates.

He equated a “residential estate without essential amenities for healthy and safe living” to a slum, emphasizing the importance of making comprehensive arrangements for critical estate infrastructure. Mr. Matthew Israel stressed that in today’s rapidly growing real estate landscape, it is no longer sufficient to simply offer land or buildings; developers must also ensure the provision of key amenities such as good road networks, constant electricity supply, clean water, efficient drainage systems, waste management, and security infrastructure. These elements, he explained, are fundamental in creating not just habitable spaces, but thriving, livable communities.

He commended Harmony Garden for taking a forward-thinking approach in integrating these components into their estate planning, noting that such dedication plays a crucial role in setting a higher standard for real estate development in Nigeria. According to Mr. Israel, prioritizing infrastructure is vital to gaining long-term investor confidence and ensuring that residents enjoy a high quality of life. He urged other developers in the industry to adopt similar practices, as this would elevate the overall perception and performance of the Nigerian real estate market. Mr. Israel concluded by reaffirming BRG’s readiness to collaborate closely with Harmony Garden in promoting developments that are not only profitable but also socially responsible.

(Dr.) Saheed expressed concern that some estate developers may underestimate the costs associated with providing necessary infrastructure. This oversight can lead to challenges such as inadequate capital and an influx of complaints from clients. He noted that “poor cost planning for infrastructure can significantly undermine even the most ambitious projects.”

Highlighting the crucial nature of infrastructure elements such as perimeter fencing, road networks, drainage systems, security measures, water supply, electrification, recreational areas, and landscaping, he explained that the costs involved could represent a substantial portion of the overall budget—sometimes half or more—depending on site characteristics and occupancy expectations.

He pointed out that failing to allocate sufficient funds for infrastructure during the planning phase could lead to unexpected challenges as the project unfolds. (Dr.) Saheed also mentioned that some developments are currently stalled because the developers sold out most of the plots or housing units without securing adequate budgetary provisions for infrastructure, resulting in significant difficulties in completing the necessary works.

Hon. (Dr.) Saheed with a pragmatic approach

He advised estate developers, especially those focusing on serviced plots, to accurately factor in infrastructure costs to avoid any potential financial setbacks.

In his analysis, Hon. (Dr.) Saheed indicated that the cost of basic estate infrastructural development per acre typically ranges from 20 to 25 million Naira for affordable housing estates, and 45 to 55 million Naira for luxury estates. He noted that expenses related to perimeter fencing, roads, drainage, and electrification often account for at least two-thirds of the total infrastructure budget.

Referencing a comprehensive cost analysis conducted in September 2015 for a proposed 1500-unit affordable housing estate on 200 acres of land in Abuja, he revealed that the gross infrastructure cost would be approximately 4.63 billion Naira, while the overall housing units, which include bungalows, duplexes, and flats, were estimated at 10.74 billion Naira—a figure exceeding the estimated cost of the housing units by 43.11%.

(Dr.) Saheed emphasized that these costs, some of which can be challenging to identify at the planning stage, are significant and warrant careful consideration, as many private and public estates with attractive designs have not reached their full potential.