Top interesting facts about real estate in Nigeria
Nigeria’s real estate market is huge, thriving, and expanding. There are a wide range of properties with different styles and functions, as well as a diverse set of participants, including tiny independent agencies and huge real estate firms.
If you want to invest in Nigerian real estate, whether in Lagos or elsewhere in the nation or if you’re just interested in learning more about it, you’ll need to know a few key things first. There is always more to learn, but a newcomer should familiarise oneself with the fundamentals of the profession.
Here are some interesting facts about real estate to consider:
Nigeria has a housing deficit of 22 million units
Despite its size, Nigeria’s real estate business still falls short of addressing everyone’s demands. According to the Federal Mortgage Bank of Nigeria, Nigeria has a housing shortfall of 22 million units. This is up from PwC’s estimate of 17 million a few years ago.
According to the World Bank, Nigeria would require ₦59 trillion in investments to close its housing deficit. When viewed favourably, this presents lots of opportunities for realtors and property investors.
Nigeria has one of the lowest home ownership rates in the world
Nigeria has a 25 percent homeownership rate. This is lower than its counterparts in other emerging markets, such as Turkey (58%), Indonesia (84%), and South Africa (84%). (56 percent ). This, according to experts, is due to the difficulties in acquiring an affordable mortgage.
Real estate presents diverse investment options
Real estate can be purchased in a variety of ways. You may sell land for a profit, crowdfund with friends or business partners, or develop and rent out residential or commercial space, depending on the funds available. Another alternative is to put money into a REIT (Real Estate Investment Trust) (REIT). This may be accomplished by purchasing a REIT stock.
Over 20% of Nigeria’s total real estate value is concentrated in Abuja and Lagos.
The most costly lands and properties in Nigeria are found in Lagos and Abuja. Banana Island in Lagos has the greatest per capita income of any region in the country, and numerous High Net-Worth Individuals live there. Old Ikoyi, Ikeja GRA, and Victoria Island are also popular among the elite.
Exclusive neighbourhoods abound in the FCT, with Maitama, Asokoro, and Jabi among the most notable.
The Housing Vacancy Rates in the FCT Are The Highest
According to recent reports, the Katampe area in the FCT has the highest vacancy rate for residential property, with almost 40% of spaces empty. Apo is in second place, with a vacancy rate of 19%.
Victoria Island (22 percent), as well as Lekki and Ikoyi, have the highest vacancy rates in Lagos (20 percent each).
Lagos’ Most Expensive Retail Location Is Victoria Island
Retail leases on Victoria Island average around $81,000 per square metre (sqm), which is a lot of money. Retail rents in Lekki are slightly lower, according to Northcourt, averaging around 80,000 per square metre.
Other parts of the Lagos metropolis have significantly lower rents. It costs 6,000 per square metre in Mende. It averages 7,000 per sqm in FESTAC.
It’s worth noting that Lagos accounts for 80% of all retail activity in Nigeria. According to Knight Frank, a real estate consultant firm in the United Kingdom.
The Nigerian real estate market isn’t without its issues. It’s just as vulnerable to economic downturns as other industries. However, it has a lot of long-term worth. It’s also a key facilitator of economic productivity and success, as the places it creates are where the majority of our wealth is generated.