In order to increase the supply of housing in Nigeria, we need to equally increase demand. The biggest factor in increasing the demand for housing is through the availability of funds to the buyer. The average length of mortgage globally is 25 years, however in Nigeria, many people have to save up to buy their houses through full cash down payments…
The government has been overly laying much effort on the cost or price of the building of houses and thus trying to force an economic logic on this. Yet, it is basic economics that prices are determined at the intersection of demand and supply. Prices are not going to be efficient when we have low demand for, as well as a low supply of housing.
Nigeria has a relatively cheap housing market , however the problem affecting the sector is often the demand for cash payments for properties, which is coupled with the exorbitant interest rates that come with these payments. A three-bedroom flat in a multi-dwelling unit in the commercial capital of Nigeria, which is Lagos, goes for between N25 million and N30 million . This would be a bargain acquisition in many economic capitals of the world.