Price Range: from ₦200 to ₦2,500,000
Land Area Range: from 10 SqFt to 1,000 SqFt
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Enhancing Housing Supply (40th Anniversary Commemorative Conference)

Enhancing Housing Supply (40th Anniversary Commemorative Conference)

Moderator: Ayo Ibaru, COO / Director, Research – Northcourt Real Estate.

Speakers: Mr. Gboyega Fatimilehin, Founding Partner, Diya, Fatimilehin & Co; Olaide Agboola, CEO/Co-Founder, Purple; Hakeem Ogunniran, Founder / CEO, Eximia Realty Co Ltd.

Following the establishment of housing institutions in Nigeria, several attempts have been made at increasing the housing supply across various parts of the country. However, with about 50,000 houses provided in the last 20 years, the hope to bridge the current housing deficit at over 25 million housing units remains bleak. To ensure the liquidity of the real estate sector, the government must improve its support for local production and capacity development programs, particularly for artisans, by upgrading its various technical institutions across the country.

The latest PENCOM policy encourages accessibility to 25% of pension savings as equity contribution for residential mortgages, implying a potential demand size of about ₦4Trn from the over ₦14Trn worth of pension fund assets. With the demand-supply gap widening, a stifling policy is imminent as the Nigerian economy grapples with macroeconomic headwinds, including rising inflation and interest rates. Land and the complexities surrounding its accessibility and usage have also contributed to this gap. The foundation for a successful housing program is the ease of accessibility to land as everything happens on it. So, carefully considering the reformation of our land policies is a step in the right direction.

Though discouraged by bank borrowing rates (now at over 30%), developers must be deliberate in dealing with the situation by considering other sustainable funding options, including the capital market. With only 2,860 housing units completed by the Federal Ministry of Works & Housing and 6,200 in the pipeline in the last 8 years, the need for collaborative partnerships and innovative financing for mass housing projects has become crucial. To take advantage of the liquidity potential of real estate, the commoditization of housing, like every other commodity, may be considered, and creating a subsidized financing framework can help achieve this. 

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