Developer advocates PPP to reduce Lagos housing deficit

Real Estate

A private developer, Design Union Limited, has advocated the adoption of Public-Private Partnerships (PPPs) in housing delivery to improve affordability, enhance infrastructure provision, and reduce the cost of government land.

The Managing Director/Chief Executive Officer of Design Union Limited, Mr Anthony Aihie, noted that most state government development projects are now executed through joint venture arrangements.

“Government’s holding of vast tracts of underdeveloped land and its ability to issue clean titles make it an ideal partner for private developers,” he said. “Even large-scale infrastructure projects such as railways and toll roads are being executed under PPP arrangements. PPP is indispensable if we are to address the housing deficit.”

Aihie explained that PPPs can help lower housing costs by reducing the price of government land in joint venture agreements, rather than insisting on full commercial market value.

On infrastructure provision, he urged governments to be more proactive in delivering essential services such as roads, water, and electricity, noting that these significantly impact the overall cost of housing delivery.

He acknowledged that the company’s Ilupeju Gardens project of about 260 housing units represents only a small contribution to the country’s housing deficit but described it as a step in the right direction.

“With more affordable mortgage financing now available, we aim to deliver about 1,000 housing units annually and gradually scale up to 5,000 units per year, which will contribute more meaningfully to reducing the deficit,” he said.

Aihie disclosed that the firm is partnering with the Lagos State Development and Property Corporation (LSPDC) to deliver the second phase of the development. He said construction is progressing steadily, with several building carcasses nearing completion ahead of the planned delivery in the second quarter of 2027.

According to him, the estate offers a practical housing option for families and professionals seeking to live within the city in a more serene environment.

The development consists of 17 residential blocks designed across three categories to meet varying housing needs. Type A features four-bedroom maisonettes with one-bedroom penthouses on selected top floors, while Type B includes one- and two-bedroom apartments, as well as three-bedroom units.

“The mix of unit types provides options for individuals, young couples, and larger families. Pricing reflects the size and layout of each unit, allowing buyers to choose based on their budget and long-term plans,” he said.

He added that one of the project’s key strengths is its secure title structure, with a letter of allocation issued directly by LSPDC, ensuring clarity of ownership and proper documentation, an important consideration for homebuyers and investors.

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