On the 1st of October, 2020, Nigeria will celebrate her 60th Independence anniversary. Man, it’s been one real experience of a Sapphire Jubilee!!
In 1960 when Nigeria gained independence, the country had a population of about 45 million people (68% were below the age of 35 years).
Today, the country’s population is over 200 million, of which 70% fall below the age of 35 years.
While it’s difficult to point out what the housing deficit was in 1960, past study shows that Nigeria’s housing needs in 1990 were about 8.4 million (meaning that we needed 8.4 million homes to accommodate the population at that time).
Thirty years later, the country needs between 16 million to 22 million housing units to accommodate a growing population of over 200 million people.
As the population keeps growing, housing needs will go up and since the country has an increasing number of young working-class adults, the demand for housing that suites this demography will surely increase.
Gone are the days when the real estate market had more multi-family homes than small unit homes (such as the One Bedroom & Two Bedroom Apartments).
Today, the market is seeing new smaller unit homes coming up in major cities across Nigeria (especially in Lagos, the country’s economic hub).
Though we cannot rule out the fact that some of the new projects coming up may be linked to the country’s slow economic growth, we should also understand that most Nigerians are below 35 years.
When most young people in this demography leave their primary home, they start by renting smaller apartments from landlords before moving to larger homes.
As Nigeria clocks 60, we look forward to what the next decade awaits its real estate market.
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