Adonis Fakanlu calls for urgent action to solve Lagos’ ghost housing crisis

The Lagos real estate market is grappling with a pressing issue—ghost housing, a phenomenon where luxurious high-end properties remain unoccupied despite the city’s severe housing deficit. While many Lagosians struggle with homelessness or substandard housing, prime residential buildings stand vacant due to speculative investments, poor urban planning, and widening social inequalities.

Urban development expert and CEO of Comfort Architectural Finishing Limited, Adonis Fakanlu, has called for urgent strategic collaboration to address this growing crisis. In an in-depth interview, he dissected the root causes, economic impact, and potential solutions for ghost housing in Lagos State.

The Root Causes of Ghost Housing in Lagos

According to Fakanlu, Nigerian expatriates are among the major drivers of ghost housing. Many wealthy individuals purchase luxury homes in Lagos as status symbols or long-term investments rather than as primary residences.

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“Most Nigerian expatriates see homeownership as a way to preserve wealth, even when they might never or barely live in these houses. This, coupled with weak regulatory oversight, cultural considerations, and excessive diaspora psychology, has led to a growing inventory of unoccupied high-end properties.”

Impact on the Lagos Real Estate Market

Fakanlu warned that ghost housing is distorting the real estate market, creating an oversupply of luxury properties, while affordable housing remains scarce.

“The real estate market is experiencing downward pressure on prices, misallocated resources, and reduced investor confidence. This inefficiency makes it harder for middle- and low-income Nigerians to access decent housing.”

READ MORE: How demand from diaspora investors spurs Nigeria’s luxury estate

Additionally, urban planning and infrastructure development are suffering due to underutilized land and empty residential estates, which distort the city’s housing policies and deepen socio-economic inequalities.

Economic and Social Consequences

Ghost housing does not just affect the real estate sector; it also has wider economic implications, particularly for small businesses, rental systems, and foreign investments.

“Local businesses struggle due to low consumer activity in vacant estates, while an excess supply of luxury homes drives up rental prices, making housing increasingly unaffordable. This inefficiency ties up capital in unproductive assets, discouraging foreign investment and deepening urban inequality.”

Festive Seasons and the Housing Market

During peak seasons such as Christmas and New Year, vacant properties are converted into short-term rentals, absorbing the influx of visitors. However, Fakanlu noted that this is a temporary solution that does not address the core problem.

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“These rentals serve affluent visitors but do not solve the housing shortage. Worse still, their rising costs push more people into crowded areas, worsening Lagos’ already strained housing conditions.”

Potential Solutions to Lagos’ Ghost Housing Crisis

To address ghost housing, Fakanlu proposed several strategic measures:

1. Repurposing Vacant Properties:
   • Introducing policies that facilitate mixed-use developments, allowing luxury homes to be repurposed into affordable housing, office spaces, or co-living units.
2. Tax Incentives & Penalties:
   • Implementing tax penalties for long-term vacant properties to discourage real estate hoarding.
   • Offering tax reductions for landlords who lease properties for short-term rentals or affordable housing initiatives.
3. Government Intervention & Policy Reforms:
   • Introducing new urban housing policies focused on taxation, incentives, and public-private partnerships to optimize housing supply.
   • Imposing higher taxes on persistently vacant properties and redirecting tax revenues into affordable housing projects.
   • Collaborating with developers to encourage the construction of budget-friendly serviced apartments and affordable homes.
4. Real Estate Industry Reform & Ethical Considerations:
   • Encouraging developers to prioritize affordable and middle-income housing over speculative luxury investments.
   • Promoting flexible property design that allows temporary usage during peak seasons.
   • Strengthening public-private partnerships to ensure inclusive, demand-driven urban development.
5. Leveraging Technology for Smarter Housing Solutions:
   • Utilizing data analytics to assess real housing needs and prevent over-concentration of high-end properties.
   • Implementing smart urban planning models that balance housing demand with sustainability and affordability.

A Call for Urgent Collaboration

Fakanlu concluded by emphasizing the urgent need for collaboration between the government, real estate developers, investors, and urban planners.

“The only way to fix Lagos’ housing market is through inclusive policies, strategic investments, and a commitment to social responsibility. By working together, we can create a housing system that benefits everyone—not just the wealthy few.”

As Lagos continues to expand and modernize, solving the ghost housing crisis is critical to achieving a more inclusive, sustainable, and equitable urban future.