Affordable Housing
Market Gap
Nigeria’s population is forecast to grow at 2.6% per annum. As the population growth rate increases, house prices appreciates, which puts a strain on housing demand and the need for affordable housing. Thus, widening the supply gap, as new supply is needed to house the growth of the population. The share of urban population as a percentage of the total population in Nigeria is 50.34%.
2.6%
Nigeria’s Population Growth Forecast
50.34%
Urban population as a share of the total population
20m
Housing Unit deficit
Rapid urbanisation is placing huge demands on the retail sector, infrastructure, energy sources, services, job creation, climate and environment which is a key driver for the real estate sector as it creates demand for properties in urban areas as more people relocate to urban centres. Thus affording more people (especially the middle-low income class) the opportunity to buy homes and access funds for affordable housing.
PwC estimates the housing deficit to be about 20 million units. By 2050, the UN estimates that 68% of the population will be living in cities; this translates into an annual housing requirement over the coming decades of at least 700,000 units just to keep up with growing demand and urban migration. UN also projects that by 2050, Nigeria would have a total of 189 million urban dwellers.
The housing sector has a significant impact on emissions, particularly from residential energy usage throughout the lifetime of the buildings, and the carbon intensity of the materials used in construction. The lack of long-term housing finance, difficulties with property registration, titling and the cost and time of foreclosing were listed as the major bottleneck for the development of the housing market.
N5.9 trillion
Estimated size of
Housing market
Market opportunity
According to a PwC Report, Nigeria’s housing market is estimated to worth about NGN5.9 trillion and is projected to grow by 22% to reach N7.2 trillion by 2024. Nigeria has over 41 million households with 75% of them still depending on rented apartments for housing. Nigeria would need to provide about 4.9 million standard housing units yearly to address the housing deficit and housing needs over the next 10 years
Housing Solution Fund
In collaboration with our development partners we are developing a housing solution fund with a mission to unlock the potential for affordable and accessible finance for sustainable housing delivery using blended finance to catalyze integrated housing solution to stimulate demand and scale housing supply.
The fund will be established as a real estate investment trust (REIT) and will stimulate housing demand by providing affordable long-dated blended mortgage loans to stimulate housing demand and scale housing supply.
Mobilising long term capital that will provide homebuyers access to affordable housing finance whilst enabling affordable housing developers access sustainable construction financing from the debt capital markets will be transformative.
Clean Energy
Nigeria is now the country with the largest number of people without energy access in the world – over 85m or 43%…