Nigeria’s population presents so much for investors prepared to seize the opportunities present in Africa’s most populous nation.
Despite over 17million housing supply deficit, the average cost of building a house in Nigeria is higher than that of South Africa and India.
This was revealed in a report presented at the Nigerian Institution of Estate Surveyors and Valuers (NIESV)’s summit in Lagos.
The report maintains that the high cost of building in Nigeria has served as an impediment for the high level of the deficit in the housing sector.
The Director, Deals Advisory, PWC, Mrs. Bola Adigun, while rolling out figures revealed that an average cost of building a house in Nigeria is $50,000 (N15.2million), it is $36,000 (N10.9million) in South Africa and $26,000 (N7.9million) in India.
By calculation, it means that the average cost of building a house in Nigeria is 28.2 percent higher than that of South Africa and 48 percent in India.
She highlighted several issues as the reason for this development.
The PWC’s deals advisory expert listed poor access to loan facilities, high cost of building, difficulty in getting property titles, huge urban population, N20 trillion mortgage finance deficit among other challenges of the real estate sector.
Analyzing the situation, she expatiates that only four percent of Nigerians over the age of 15 received a loan from financial institutions in 2017; while 85 percent of the urban population lived in rented accommodation.
These challenges she highlighted as issues that have to be sorted for Nigeria to solve its housing deficit challenge.
Talking about inherent opportunities for investors and private partners, Adigun said: “Nigeria’s middle class outnumbers that of any other states in sub-Sahara Africa,” adding that with a growing population of over 180 million, Nigeria offered enormous opportunities for real estate despite structural weaknesses in its economy.
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