The Chief Executive Officer of Pelican Valley Nigeria Limited, Ambassador Babatunde Adeyemo, has disclosed plans by the company to review upward the prices of properties and contracted development across its estates, citing the rising cost of construction materials in the country as reason for the decision.
Adeyemo, whose firm developed estates such as Pelican Valley Estate, Pelican Brief Estate, Pelican’s Ecostay Apartments, and Pelican Greenish Acre Farm Estate – said the decision became necessary following the fluctuating and sharp increase in the prices of cement, granite, labourers and other building materials.
He spoke during an inspection visit to Pelican Brief Estate alongside a renowned quantity surveyor at the weekend to evaluate current construction costs and determine appropriate adjustments to property prices.
The awards – winning real estate entrepreneur noted that the firm remains committed to maintaining quality standards and ensuring that investors continue to enjoy high returns on their investments.
“We are reviewing the prices of our properties because construction materials have become more expensive. Cement rate is high, granite and labourer rate is high, among several other inputs have also gone up,” he said.
He explained that the review would help the company maintain quality delivery on ongoing and future projects.
Adeyemo recalled that the company had previously sold plots of land at Pelican Brief Estate for as low as N780,000 when the area was largely undeveloped, emphasizing with confidence that today a plot of land has appreciated significantly to satisfaction of many investors.
“Today, a plot of land there sells for about N15 million and we are considering reviewing it upward in the next few weeks to either N17.5 million or N20 million per plot,” he said.
He reassured clients and investors that properties within Pelican Valley estates offer strong return on investment within a relatively short period.
He added that the ongoing assessment by the firm’s quantity surveyor would help determine a reasonable margin to reflect the current realities of the construction market.
“We want to prepare the minds of our clients ahead of the review. Those who have not fully mobilised us for their projects need to be aware of the variations so they can plan properly,” Adeyemo said.
Also speaking during the inspection, a Fellow of the Nigerian Institute of Quantity Surveyors and immediate past chairman of the institute’s Ogun State chapter, Solomon Michael Ojo, said the review was inevitable due to prevailing economic conditions.
Ojo explained that the cost of major construction inputs such as reinforcement materials, cement, timber, plumbing and electrical fittings had increased significantly.
“It is important to review the rates inserted in the bill of quantities because the prices of construction materials have changed. If we continue to use old rates, it may affect the quality of projects,” he said.
He noted that the Nigerian economy’s dependence on crude oil often influences the cost of building materials, which in turn impacts construction projects.
Ojo emphasised that Pelican Valley’s management had demonstrated transparency in its operations and remained committed to delivering value for clients.
“If reinforcement that used to cost N1 million now sells for N1.2 million and the rates are not reviewed, it will affect the quantity and quality of materials used,” he said.
According to him, the planned review is aimed at ensuring that buildings within Pelican Valley estates maintain structural integrity and meet industry standards.
“Pelican Valley does not cut corners. The goal is to ensure that clients get value for every kobo spent,” he added.
