The dream of homeownership among young Nigerians is steadily slipping out of reach as property prices continue to outpace incomes. Across major urban centres such as Lagos, Abuja and Port Harcourt, the cost of entry-level homes has surged beyond what many young professionals can afford, even with years of savings.
This was the sentiment of real estate stakeholders at the Property Investment and Smart Cities Conference organised by BusinessDay themed: ‘Property Investment in an Era of Capital Discipline.’
Read also: Why the rich deserve luxury housing – Erejuwa Gbadebo
Bright Okereke, co-founder of Flinx Realty Limited, said there’s an urgent need for developers to build affordable homes that can cater for young professionals, despite their earning powers.
“More than 60 percent of Nigeria’s population is young people, yet I don’t think enough people are building for that market,” he started. “This is why many young people in their late 30’s are not getting married. Single people are increasing, staying in one-bedroom or studio apartments, and this is many are single.”
Okereke says this rise in single people is an epidemic that should be attended to with utmost urgency. On this premise, his company, Flinx Reality, focuses on building affordable studios and one-bedroom apartments in Yaba and Lekki, catering to young professionals.
However, Olurogba Orimalade, principal partner, Rogba Orimodade & Co, said accessing finance at large scale is a big disconnect in real estate infrastructure, and it is driving housing pricing.
“Everyone talks about how cement is not affordable, rods are expensive and even labour, but we also need to talk about affordable financing,” he said.
Similarly, My-Ace China, founder of The Mayor of Housing Limited, pinned rising housing rentage to imports. According to him, over 60 percent of raw building materials are not manufactured in Nigeria.
Read also: Why capital discipline is the new frontier for Nigerian real estate
“If cement is expensive, no matter how much money Nigerians save, we’ll still have an expensive building. We have to look at how to localise raw materials.”
China disclosed that his company was starting a low-cost housing project, where young professionals can afford to rent two-bedroom bungalows at low costs.
“We are going to build self-contained apartments for sale. The ones available across Nigeria are for rent, not for sale. The idea is to make many more people able to become homeowners,” he said.
The case for luxury housing
Erejuwa Gbadebo, managing director of Eko Development Company, during another panel session, made a case for the upper class, arguing that they deserved luxury housing.
“The rich deserve luxury housing. One of the things that builds a country is its tax base. People who pay the tax or who should be paying the tax are often the rich,” said Gbadebo, noting that “they have the companies and businesses, and they also deserve to be able to buy housing where they can host their international investors.”
According to her, the people who pay the tax are the rich, and so they deserve luxury homes. She compared Nigeria’s rich and poor housing gap to New York, America, where there are Manhattan and Brooklyn – two cities with different housing – and London, England, where there are Knightsbridge and the East End.
For her, every successful economy is allowed to have housing that can accommodate the purchasing power of its population.
Lagos plans smart planning, capital discipline to boost property investment
However, Oluyinka Abiodun, Lagos state commissioner, ministry of Physical Planning and Urban Development, said that the state aims to change the landscape of property investments and build confidence among investors, through transport-oriented projects, smart city infrastructure, and public-private partnerships.
Abiodun said these measures are designed to give investors confidence, reduce risks, and create a property market that is both profitable and socially inclusive.
“We are investing heavily in our transport logistics, so people can live in areas their salary can afford and commute to work efficiently.
“Smart infrastructure, green and sustainable real estates, commercial and industrial estates, together they create an environment that attracts capital,” he said.
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