The real estate assiduity in Nigeria has witnessed remarkable growth over the times, transubstantiating into a dynamic and vibrant sector.
To understand its present state, it’s pivotal to claw into the origins of the real estate business in Nigeria.
Let’s explore the literal development of the assiduity, pressing crucial mileposts, challenges and openings that have shaped its line as we also look beyond the 63 years and take if farther to the Nigeria We Want.
The roots of the real estate business in Nigeria can be traced back to the pre-colonial period.
Traditional societies rehearsed land power and allocation, albeit with different systems and customs across regions.
With the appearance of social powers, land operation systems passed significant changes as the British introduced formal land power enrollment and land term systems.
Following Nigeria’s independence in 1960, rapid-fire urbanization and population growth fueled the demand for casing and civic structure.
The real estate assiduity began to crop as inventors responded to the rising requirements of a burgeoning civic population.
The establishment of state casing pots and government- patronized casing schemes aimed to address the casing deficiency, but the scale of demand outpaced force.
The 1980s witnessed a significant shift in the real estate geography as the Nigerian government introduced structural adaptation programs, leading to profitable liberalization and privatization.
These reforms encouraged private sector participation in real estate development. Private inventors began to play a more prominent part in meeting the casing requirements of Nigerians, particularly in civic centers.
To insure translucency, professionalism, and consumer protection, the Nigerian government legislated colorful laws and regulations to govern real estate deals.
The establishment of professional bodies, similar as the Nigerian Institution of Estate Surveyors and Valuers( NIESV), further contributed to the professionalization of the assiduity. These developments enhanced the credibility of real estate interpreters and eased trust among buyers, merchandisers, and investors.
Despite its growth, the real estate assiduity in Nigeria faces several challenges. Limited access to backing, shy structure, land use issues, and regulatory backups pose obstacles to development. still, these challenges also present openings for invention and investment.
See video for responseshttps://youtu.be/OVPA1jUnJAQ?si=gozU6urUE5Y-VfkO
Funding and Mortgage
Average Nigerian Mortgage Rate is 22.04% – Mortgage Rates for All Nigerian Banks.
In agreement with the translucency and full exposure station of the Central Bank of Nigeria, the Monetary Policy Committee decided that all lending rates by Deposit Money Banks will be made public to guide business opinions. Now what are the challenges of mortgage?
See video for responses. https://youtu.be/OVPA1jUnJAQ?si=oP6nd7Ffo15ASlYY
How Can The investor Access finances?
For expiring real estate investors in Nigeria, access to finances is always a challenge.
While numerous have tried the route of seeking out- takers for their off- plan systems, the reality of the request is that a inventor who goes through thatpath must also have some finances to protest start a design if off- takers where to show any serious commitment.
See video for response.https://youtu.be/OVPA1jUnJAQ?si=gozU6urUE5Y-VfkO
So, the appointment of Architect Ahmed Musa Dangiwa as the Minister of Housing and Urban Development by President Bola Ahmed Tinubu has been described as signal of a new period of progress and invention in the housing sector.
It also underscores current administration’s commitment to addressing the critical challenges of housing and civic development in Nigeria.
His trip from a fulfilled mastermind and academic to the former Chief Executive Officer/ Managing Director of the Federal Mortgage Bank of Nigeria( FMBN), and now as Minister, indicates his dynamic capability to shape the course of urbanisation in Nigeria.
TIMELINE OF NIGERIA HOUSING INDUSTRY
· The first National Development Plan of 1962 – 1968 saw Nigeria establishing state-owned housing corporation which was for the provision of urban infrastructure and industrial estates in three key areas— Lagos in South West, Port-Harcourt in South East and Kaduna in the North.
· The second National Development Plan from 1970 to 1974 saw the establishment of National Council on Housing and the creation of Federal Housing Authority (FHA) in charge of housing Nigerians and the establishment of National Housing Programme (NHP) to construct about 59,000 housing projects. That was when the Staff Housing Loans Board was established.
· The third National Development Plan from 1975 to 1980 saw activities of federal government’s direct intervention in housing when about 220,000 dwelling units were proposed. 50,000 units in Lagos, then 8,000 units in each of the then 19 states. At the end, only 15 percent of the projection was achieved.
· There were other housing programmes such as the establishment of committee on standardization on housing types and policies in 1975. There was also an anti-inflation task force in 1976.
· There was also a Rental Panel in 1976, and then the Land Use Panel in 1977. The Nigeria building society was also converted to Federal Mortgage Bank of Nigeria (FMBN) in 1976 with a special capital base of about N20million, then increased to about N150million later on in 1979.
· The last of these government housing programmes seemingly ended with the second civilian administration from 1979 to 1983 during which period there was an elaborate national housing programme based on the concept of affordability and citizens’ participation. This was the period of low-cost housing by the President Shehu Shagari at the federal level and Lateef Jakande in Lagos.
· The vision of the National Development Plan, 2021-2025 is consistent with the pursuit of socio-economic transformation of the country as envisioned in the long-term aspiration of Nigeria, encapsulated in the Nigeria Agenda 2050.
· During the Plan period, government will focus on sectors with great potentials to generate jobs for our people and with multiplier effects on other sectors.
· Government will invest on critical infrastructure such as Power and alternative energy, Rail, Roads, and Housing and ensure macroeconomic stability, enhance business and investment environment and improve the living conditions of Nigerians.