GMH Absorbs Costs Amid Rising Construction Challenges

GodMade Homes Limited (GMH Luxury) faced significant challenges as Nigeria's naira depreciated in 2023, impacting construction costs and customer commitments. The company had to decide whether to pass increased costs to customers, reduce project specifications, or absorb the costs.

GMH chose to absorb the costs, refunding over N4 billion to customers who opted out of their payment plans rather than revising terms. This decision, made between 2023 and 2025, allowed GMH to maintain customer trust while continuing construction on eight developments.

The company borrowed funds to meet its obligations and prioritized the quality of homes over project timelines, resulting in extended delivery schedules for some projects. Two developments in Lekki and Ikoyi are now scheduled for delivery.

GMH's approach reflects a broader issue in Nigeria's off-plan property market, where fluctuating construction costs complicate pricing stability for long-term projects.