Why real estate investment fund will boost housing market

A developer, NISH Affordable Housing Limited, has stated that the housing market could experience a significant boom if the proposed Federal Government’s Real Estate Investment Fund is efficiently implemented to finance prospective homebuyers in the country.

The founder, Mr. S.K. Yemi Adelakan, in an interview with The Guardian in Abuja, explained that since housing depends on finance, ensuring adequate, accessible, and affordable financing would invigorate the market. This would, in turn, boost the construction of various types of homes, including one-, two-, three-, and four-bedroom houses, offering people a range of choices.

Adelakan expressed the opinion that the housing market may not experience a downturn in the foreseeable future because deficits continue to outstrip supply. He highlighted that the government’s Renewed Hope Housing Programme under the present administration would further keep the market active and thriving with construction activities.

“It’s important to also note that the high-end segment of the market will continue to flourish. One and two-bedroom houses are in high demand but are grossly undersupplied. Single individuals and newly married youths need decent but affordable houses,” he said.

The Founder declared: “With the hardship in the country, delivering affordable housing is possible even under the present economic conditions if the government at all levels incentivises developers and building materials manufacturers.”

He argued that introducing bankable off-takers guarantees could catalyse the housing market and the economy, ultimately making affordable housing more accessible.

On the cooperative housing movement, he noted that it is gaining momentum by aggregating members’ savings to promote effective demand. He also observed that Nigerians in the diaspora are taking advantage of the weak Naira exchange rate to invest in the Nigerian housing market.

Regarding the 7th Nigeria Affordable Housing Finance Summit, scheduled for November 26 in Abuja, Adelakan explained that the strategy is to provide solutions to the housing needs of low and medium-income earners in Nigeria through innovative development and end-to-end financing of affordable yet decent homes.

“NAHFIS will promote innovative building technologies, digital transformation, the self-help culture of the cooperative model, capacity building among professionals and artisans, as well as collaboration among stakeholders,” he said.

“The summit advocates for policies and incentives that will enhance the large-scale delivery of houses (either rented or owned) at prices affordable to low and medium-income earners in both the formal and informal sectors of the economy,” he added.