Two new reports on Nigeria’s and Lagos housing markets have positioned the deficits in the two markets as major investment opportunities, estimating the markets’ potential value in trillions of naira.
The reports, titled ‘From Shortage to Opportunity: Unlocking the Billion-Dollar Housing Market’ and ‘Lagos Housing Report: A Treasure Trove of Possibilities,’ are the highlights of a PAC Research work unveiled in Lagos recently.
The publication provides one of the most comprehensive assessments yet of Nigeria’s housing ecosystem, revealing a national housing deficit of more than 28 million units, with Lagos State alone accounting for a shortfall of 3.4 million units.
Shehu Osidi, the managing director of the Federal Mortgage Bank of Nigeria (FMBN), noted in the foreword to the publication that Nigeria needs approximately 800,000 new homes annually to keep pace with population growth.
That figure is projected to rise to two million homes per year by the end of the decade. The report also highlights the country’s low mortgage penetration, currently below 1 percent of GDP, compared with 77 percent in the United States and 31 percent in South Africa.
“Nigeria stands at a critical juncture where rapid urbanization and economic transformation converge to create unprecedented opportunities,” the research publication stated.
It outlines innovative financing solutions aimed at bridging the housing gap, including Real Estate Investment Trusts (REITs), diaspora mortgage products, and the Renewed Hope Housing Scheme.
A major section of the report focuses on Lagos, Nigeria’s commercial hub, which attracts more than 475,000 new residents annually. According to the report, Lagos currently has an estimated housing stock of 1.49 million units, while demand stands at approximately 4.69 million units, leaving an accessible market gap of about 2.81 million units.
Among the report’s key findings is a growing preference for smaller housing units, with more than 52 percent of residents favoring one- and two-bedroom apartments, reflecting strong demand for affordable and compact living spaces.
The report also highlights strong rental yields in prime locations such as Lekki and Victoria Island, where three-bedroom apartments in Victoria Island can command annual rents of up to N18 million.
To address the housing challenge, the report recommends the adoption of incremental housing models, deeper housing finance penetration, and stronger Public-Private Partnerships (PPPs), among other measures.
Reviewing the reports, Osidi described them as a timely call to action, adding, “this report is more than an analysis — it is a call to action. The time to invest in Nigeria’s housing market is now. The rewards extend beyond financial returns to include inclusive growth and urban resilience.”
Also commenting on the publication, Oba Abdulwasiu Omogbolahan Lawal (CON), the Oniru of Iruland and former Lagos State Commissioner for Housing, described the Lagos report as an essential guide for stakeholders in the real estate sector.
“As a former Commissioner of Housing, I attest that the report is a worthy guide. It upholds strong research standards and highlights emerging corridors such as Lekki, Ajah, and Epe as the next frontiers for real estate investment,” the monarch said.
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