Lekki Phase 1 is an Upper-Middle income and densely populated commercial and residential area located in the Eti-Osa Local government of Lagos State. It has grown to become one of the most sought-after locations in Lagos and a major attraction for leisure and recreation. 

Due to its accessibility to other commercial centers such as Victoria Island and Ikoyi, Lekki Phase 1 has seen an influx of middle to high-income earners to the area, leading to an increased demand for residential developments. This demand has in turn led to an increase in developments in order to keep up with the demand. 

Many of these new residential developments are being termed luxury, with their nice-looking aesthetics, amenities,  and facilities. However, are the facilities and aesthetics the only characteristics that determine a luxury development?

In this article, we discuss what it means for a development to be luxury, and explain the distinguishing factors that separate it from ultra-luxury and deluxe.

 

What is a luxury residential development?

With the advent of smart homes, smart systems/features in homes, and high-end facilities in Lagos State, many homes are being identified as luxury homes. However, what does it truly mean for a property to be a luxury home?

The word ‘luxury’ connotes a condition of abundance, ease, pleasure, and comfort, that is not necessarily important. Therefore, luxury homes are large homes that provide more than a space to live in but include facilities and amenities that bring comfort, ease, and pleasure to the resident(s). However, there are more characteristics that define a luxury home apart from the facilities in the building. These include location, the Grade of the Contractor, the quality of the facility management,  etc. All these play a role in determining whether a residential development is a luxury or not.

At Estate Intel, we have defined luxury residential property as a prime housing development that delivers a high-quality finished product at a standard above the market average. Furthermore, a luxury property should have the following characteristics:

• Prime location
• Some imported fixtures/fittings
• Grade A or B contractor
• Quality Facility Management, and
• High-quality finishing.

 

What differentiates luxury properties from ultra-luxury or deluxe properties?

Having defined a luxury property, it won’t be alien to ask the question, what then distinguishes luxury properties from other grades of residential buildings? There are 5 residential grades of development, namely: affordable, middle-income, deluxe, luxury, and ultra-luxury developments. The image below specifically highlights these five grades and lists their distinguishing factors. 

This section will focus on distinguishing between deluxe, luxury, and ultra-luxury developments. While luxury properties are a grade lower than ultra-luxury properties and a grade higher than deluxe properties, the difference between the three is in the; facilities, size of the apartments, location, quality of finishing, contractor grade, and facility management. 

 

From the image above, we can draw out these six major differentiators between ultra-luxury, luxury, and deluxe properties.

• 1. Apartment Sizes and Floor-To-Ceiling Height – This is a major differentiator, as the size of the apartment gives the luxury of space for the resident to do what they like. Generous Floor-to-ceiling heights create a sense of larger spaces even on smaller floor plates, due to the availability of more visible space as opposed to cramped vicinities. A typical 3-bedroom ultra-luxury apartment should be at least 390 sqm and above in size. A luxury apartment will be lower than 390 sqm, but not lower than 200 sqm. On the other hand, floor-to-ceiling heights in ultra-luxury developments are 3m+, and anything less is either luxury or deluxe. 
• 2. Fixtures and Fittings – As mentioned in a definition earlier stated above, luxury developments need to have certain kinds of fixtures and fittings that bring comfort and pleasure. Most fixtures and fittings in an ultra-luxury development are imported. This gives it an actual luxury look. For both deluxe and luxury apartments, some of its fixtures and fittings are imported. 
• 3. Finishings – Well-executed and aesthetically pleasing architectural designs are those features that give the building beauty. The finishings of an apartment also determine whether it is luxury, ultra-luxury, or deluxe. Finishings include the claddings used, interior and exterior walls, interior and exterior floors, ceiling type, type of windows and doors used, etc. All three grades have quality finishings, however, ultra-luxury and luxury usually have a much better aesthetic look. 
• 4. Location – A significant distinction between deluxe properties and ultra-luxury/luxury properties is in their location. While deluxe properties generally give a luxury feel, they may not necessarily be in a prime area. This location characteristic can be divided into two: specific location and proximity to key amenities. 

In terms of specific location, buildings located centrally provide more visibility to residents as they are at the epicenter of activity and in proximity to commercial, retail, and leisure developments. These interactions alongside a convenient transport network, are crucial to the convenience of the resident. For example, Ikoyi is more centrally located than Lekki Phase 1 and Victoria Island because of its closeness to the mainland areas, as well as having the advantage of being in the Island area.

In terms of proximity to key amenities; amenities such as food, entertainment, and culture hubs situated in inner-city areas are created through high-density living and commerce. These hubs provide unparalleled opportunities for residents to meet with and network with other residents. Ideally, the closest restaurants and hotels should be within 500 meters or less of the residence premises.

• 5. Contractor and Project Team – Though a building’s specifications will play a large role in understanding the grade of the property, these specifications are only as good as the construction consultants that executed them. For this reason, the main contractor is included as part of the grading system, where the strength of a contractor’s profile is determined by the following 3 factors: Track record, longevity in the country, and certification.

A track record refers to the main contractor’s track record in executing high-profile projects valued at substantial amounts over a period of time.

Longevity in the country refers to the main contractor’s experience in the market for several years and as such, having a key understanding of how the local, formal, and informal markets operate. This makes them able to source materials and execute projects in a timely manner due to past experiences.

Certification refers to a stamp of validation by a regulatory or national body as an indication of the company’s competence as a dependable civil engineering company. Certifications such as COREN (Council for the Regulation of Engineering in Nigeria) are attainable for civil engineering companies in Nigeria.

From the image above, it can be seen that ultra-luxury properties require a Grade A Contractor and Project Team to be used. Luxury developments however could have either Grade A or Grade B Contractors, and Deluxe developments will usually have a known Contractor.

• 6. Quality Facility Management – An ultra-luxury and luxury development usually has certified Facility Managers, while deluxe could have an in-house facility manager. Some key metrics help identify a competent facility manager: certification, track record, longevity in the country, and international affiliation.

 

In our next article, we will dive deeper into the luxury market in Lekki Phase 1, while highlighting specific developments we are tracking that fit into this grade. 

We love your feedback! Do you think Lekki Phase 1 has Luxury developments based on the standards defined above? Let us know by sending an email to insights@estateintel.com.