‘Housing crisis deepens as low income, high mortgage, others worsen affordability’

The Real Estate Developers Association of Nigeria (REDAN) has called for reforms in the country’s land titling system, and introduction of government-backed housing subsidies to reduce the cost of home ownership.

REDAN President, Akintoye Adeoye, appealed during the opening ceremony of the 10th anniversary edition of Mega Projects Nigeria, a construction, energy and water infrastructure exhibition in Lagos State.

Adeoye said any registered property title that had existed for more than 10 years should no longer be open to legal challenge, saying that the current system had left homeowners vulnerable to prolonged ownership disputes.

He cited cases of residents who had lived in their homes for more than two decades but were still facing litigation over ownership.

“That is too corrupt, and is not sustainable in any clime,” he said.

He urged state governments to strengthen land administration and speed up the processing of property titles.

The REDAN President also called for housing subsidies, citing Egypt where the government’s support for land and construction inputs had reduced housing costs for low-income earners by about 60 per cent, saying that Nigeria could adopt a similar model to narrow its housing deficit.

HOWEVER, the housing affordability crisis in Lagos State is deepening as weak household incomes, high mortgage rates, expensive land and construction financing, inadequate infrastructure and inefficient land administration continue to limit access to decent homes.

This was contained in an 86-page research report titled “Beyond Rent: Mapping Lagos’ Housing-Led Capital Expansion,” unveiled at the hybrid “Beyond Rent: A Lagos Housing and Capital Forum,” organised by GTI Investment Group in Lagos State.

The forum, themed “Housing, Capital and the Future of Lagos,” brought together stakeholders to examine the relationship between housing, finance and the long-term economic development of Lagos.

Adeoye linked the need for urgent reforms to Nigeria’s population growth, saying the country’s population could nearly double over the next 25 years, putting further pressure on cities already struggling with housing and infrastructure deficits.

He said government alone could not bridge the financing gap, urging greater public-private partnerships, development finance and long-term institutional capital to fund housing and infrastructure projects.

Adeoye also said that real estate and construction should not be treated as separate from other infrastructure sectors, stressing that housing development must be supported by roads, water and power.

He noted the growing use of new construction materials, energy systems, water management solutions and heating, ventilation and air-conditioning technology, but said such innovations should help reduce costs and improve outcomes for end users.

Meanwhile, the exhibition’s convener, Jude Chime, said the platform, formerly known as Nigeria Build Expo, had evolved over the past decade from a product showcase into a forum connecting project developers, investors, financial institutions and manufacturers.

He said the 11th edition would honour 111 individuals who had contributed to the platform’s growth, while institutional partners, including the Nigerian Institute of Building, Nigerian Institution of Civil Engineers and Mortgage Bankers Association of Nigeria, would also be recognised.

Enugu State Commissioner for Works and Infrastructure, Benjamin Osita Okoh, representing the President of the Nigerian Society of Engineers, said Nigeria’s infrastructure priorities had shifted from volume to quality, local content and sustainability.

He, therefore, called for stronger collaboration among government, engineers, financiers and the private sector, as well as greater use of innovative financing and technology.

he report’s overview was presented by the Head of Research and Strategy at GTI Investment Group, Abiodun Ogunniyi.

According to the report, the housing crisis cannot be addressed simply by reducing the cost of cement, noting that building materials represent only one component of the broader affordability challenge.

It stated that its modelling showed that even an 82 per cent reduction in cement prices would translate into only about a 14 to 15 per cent decline in house prices.

The report, therefore, urged the government to prioritise mid-density housing along employment corridors where large numbers of working-class residents live, while encouraging developers to take advantage of opportunities in the underserved affordable housing segment.