Residential property market moderate on 76% power tariff hike
August 21, 2022, 12:56 am Blog Taxation Seen: 3526
Power tariffs in serviced residential communities in Nigerian cities have increased by roughly 76 per cent as a result of the over 130 per cent spike in the price of fuel in just seven months to N780 per litre.
According to a recent analysis, this has contributed to growing prices for people who own and occupy homes and businesses.
The report, created by Estate Intel, an online platform for real estate research, details actions made by players in the residential real estate industry to address the rise in fuel prices.
The cost of power has increased by roughly 76 per cent throughout serviced residential estates in Nigerian cities as a result of the over 130 per cent increase in the price of diesel in just seven months, to N780 per litre.
According to a recent analysis, this has increased the prices for people who own and occupy residential and commercial property.
The report, which was put together by the online property research platform Estate Intel, emphasizes the measures taken by players in the residential real estate industry to address the rise in diesel prices.
According to him, this means that individuals who can afford a 24-hour power supply can obtain one, but others who want a six-hour supply can also get one.
In reaction to the economic realities that have seen many people battling with growing costs, Okosun continued, "but what we have seen largely is that renters now choose to restrict power supply."
The CEO and founder of Estate Intel, Dolapo Omidire, mentioned that most estates have seen certain alterations.
He revealed to BusinessDay that they began tracking home occupants' and facility managers' reactions to the high diesel price in March of this year.
He added, "We also tracked the movement in prices and energy policy changes in numerous residential communities throughout the country with the aid of Venco and Gate pass, property technology firms.
Omidire stated that between February and July, the average power tariff increased by 76% from 90/KwH to 178/KwH in the 22 estates studied in Yaba, Ikeja, Surulere, Victoria Island, Lekki Phase 1, Ikoyi, Osapa, Chevron, and Ajah.
He claimed that facility managers and landlords often require occupants to pay a deposit based on anticipated consumption because it was impossible to determine with any degree of accuracy how much power would be provided via the national grid.
"This deposit will be deducted based on metered usage or a straightforward division among all occupants. Requests for rollovers or top-ups will be made when necessary, he said.
All of the serviced estates and communities investigated, according to him, use a tariff-based energy system that combines payments to the national grid with payments for domestically generated energy, mostly diesel, into a single energy bill.
He claimed that since it was hard to determine the exact amount of These rates, which are frequently expressed in terms of naira per kilowatt-hour, "provide a reasonably straightforward manner for occupiers to be invoiced on all their energy consumption," the author noted.
He added that the overall energy costs for a three-bedroom apartment increased from N70,000 to N140,000 per month during the time under consideration and that the average Nigerian is finding it increasingly difficult to make ends meet in the current high inflationary climate.
Nahel Jarmakani, managing director of Green Key Facility Management, responded to the tariff price rises by stating that before the price increase, anyone who had researched the market would have seen that rates ranged from N70 per kWh to as high as N95 per kWh.
He added that the overall energy costs for a three-bedroom apartment increased from N70,000 to N140,000 per month during the time under consideration and that the average Nigerian is finding it increasingly difficult to make ends meet in the current high inflationary climate.
Nahel Jarmakani, managing director of Green Key Facility Management, responded to the tariff price rises by stating that before the price increase, anyone who had researched the market would have seen that rates ranged from N70 per kWh to as high as N95 per kWh.
The residential market is responding to management effectiveness of facilities managers in addition to the adjustment to power tariff increase. The people who live in estates are now aware of and suspicious of how their money is used.
"For us, the rise in diesel prices highlighted the shortcomings of our facilities manager and the facility management system. An estate occupant who wished to remain anonymous said, "Before a recent modification, we weren't provided with an account of how the service charge was being spent, so it was difficult to determine if we had surpluses or deficiencies.
The occupier said, "Not because we weren't aware of the increases, but because we were wary of how the funds were being managed," when diesel prices increased and the facility manager requested more money.
"Even though our previous facility manager was changed, the new hire is likewise limited in what she can accomplish. We also know some other renters who are making similar plans, and my family has decided to move out," he continued.
According to a recent analysis, this has contributed to growing prices for people who own and occupy homes and businesses.
The report, created by Estate Intel, an online platform for real estate research, details actions made by players in the residential real estate industry to address the rise in fuel prices.
The cost of power has increased by roughly 76 per cent throughout serviced residential estates in Nigerian cities as a result of the over 130 per cent increase in the price of diesel in just seven months, to N780 per litre.
According to a recent analysis, this has increased the prices for people who own and occupy residential and commercial property.
The report, which was put together by the online property research platform Estate Intel, emphasizes the measures taken by players in the residential real estate industry to address the rise in diesel prices.
According to him, this means that individuals who can afford a 24-hour power supply can obtain one, but others who want a six-hour supply can also get one.
In reaction to the economic realities that have seen many people battling with growing costs, Okosun continued, "but what we have seen largely is that renters now choose to restrict power supply."
The CEO and founder of Estate Intel, Dolapo Omidire, mentioned that most estates have seen certain alterations.
He revealed to BusinessDay that they began tracking home occupants' and facility managers' reactions to the high diesel price in March of this year.
He added, "We also tracked the movement in prices and energy policy changes in numerous residential communities throughout the country with the aid of Venco and Gate pass, property technology firms.
Omidire stated that between February and July, the average power tariff increased by 76% from 90/KwH to 178/KwH in the 22 estates studied in Yaba, Ikeja, Surulere, Victoria Island, Lekki Phase 1, Ikoyi, Osapa, Chevron, and Ajah.
He claimed that facility managers and landlords often require occupants to pay a deposit based on anticipated consumption because it was impossible to determine with any degree of accuracy how much power would be provided via the national grid.
"This deposit will be deducted based on metered usage or a straightforward division among all occupants. Requests for rollovers or top-ups will be made when necessary, he said.
All of the serviced estates and communities investigated, according to him, use a tariff-based energy system that combines payments to the national grid with payments for domestically generated energy, mostly diesel, into a single energy bill.
He claimed that since it was hard to determine the exact amount of These rates, which are frequently expressed in terms of naira per kilowatt-hour, "provide a reasonably straightforward manner for occupiers to be invoiced on all their energy consumption," the author noted.
He added that the overall energy costs for a three-bedroom apartment increased from N70,000 to N140,000 per month during the time under consideration and that the average Nigerian is finding it increasingly difficult to make ends meet in the current high inflationary climate.
Nahel Jarmakani, managing director of Green Key Facility Management, responded to the tariff price rises by stating that before the price increase, anyone who had researched the market would have seen that rates ranged from N70 per kWh to as high as N95 per kWh.
He added that the overall energy costs for a three-bedroom apartment increased from N70,000 to N140,000 per month during the time under consideration and that the average Nigerian is finding it increasingly difficult to make ends meet in the current high inflationary climate.
Nahel Jarmakani, managing director of Green Key Facility Management, responded to the tariff price rises by stating that before the price increase, anyone who had researched the market would have seen that rates ranged from N70 per kWh to as high as N95 per kWh.
The residential market is responding to management effectiveness of facilities managers in addition to the adjustment to power tariff increase. The people who live in estates are now aware of and suspicious of how their money is used.
"For us, the rise in diesel prices highlighted the shortcomings of our facilities manager and the facility management system. An estate occupant who wished to remain anonymous said, "Before a recent modification, we weren't provided with an account of how the service charge was being spent, so it was difficult to determine if we had surpluses or deficiencies.
The occupier said, "Not because we weren't aware of the increases, but because we were wary of how the funds were being managed," when diesel prices increased and the facility manager requested more money.
"Even though our previous facility manager was changed, the new hire is likewise limited in what she can accomplish. We also know some other renters who are making similar plans, and my family has decided to move out," he continued.
About the Author: eze saviour
