A wise man once said, “The finest investment on earth is the earth.”
The realism of this quote compels us not to judge it in retrospect. It only means that our lands are valuable and dependable assets with a history of profitable growth.
With rising demand for affordable housing in metropolitan areas, Nigeria’s real estate sector has seen tremendous expansion in recent years. Population increase, increasing urbanisation, and the demand for suitable housing for middle and low-income workers are the main drivers of this trend.
Over the last 50 years, the population of Nigeria grew substantially from 19 to 53.5%. As a result, demand for low-cost housing has increased significantly, particularly in urban areas. This rising demand has encouraged real estate building, with builders focused on offering low-cost housing alternatives to match the growing market.
In this blog post, we will be discovering interesting real estate trends and how it affects us.
Demand for Affordable Housing in Urban Areas
One significant factor driving the increase in demand for affordable housing in urban areas is the growing number of young adults entering the job market. These young adults are typically in search of affordable homes that are within their budget and offer modern amenities like electricity, water, and security.
Other key elements that drive this trend are listed below.
- Rise of the Middle-Class Population
Another factor driving the demand for affordable housing in urban areas is the rise of the middle-class population. As more people move into the middle-class category, they seek homes that meet their standard of living but are also within their budget.
One of the primary reasons is that moving into the middle-class system often means an increase in income and resources, which allows people to afford more comfortable and spacious homes that meet their needs and desires.
Moreover, middle-class individuals often value homeownership as a symbol of stability, security, and success. Owning a home allows individuals to build equity and accumulate wealth over time, which is an important part of achieving financial security and upward mobility.
- Low-cost Housing Units
Nigeria is one of the most populous countries in Africa and the majority of Nigerians live in urban areas, and the demand for affordable housing in these areas has been on the rise. The demand for affordable housing has led to a rise in the development of low-cost housing units, which are designed to meet the needs of middle and low-income earners.
The cost of housing in Nigeria has been on the increase, making it difficult for the average Nigerian to own a house. The government has recognized the need for low-cost housing and has introduced policies and programs aimed at increasing the availability of affordable housing for Nigerians. The government plans to partner with private developers to build low-cost housing units, and this will lead to an increase in the supply of affordable housing.
Private real estate developers have also recognized the demand for low-cost housing units and have started building them to cater to the needs of the average Nigerian. These low-cost housing units are often located on the outskirts of urban areas, where land is cheaper, making it possible for developers to build affordable housing units.
- Innovative Financing Alternatives
Developers are looking at new financing solutions such as rent-to-own programs, mortgage finance, and government-backed housing programs. These financing options are aimed at making it easier for low and middle-income earners to own homes.
Despite the increasing demand for affordable housing in urban areas, there are still significant challenges that need to be addressed. One of the primary challenges is the high cost of building materials and construction, which makes it difficult for developers to build affordable homes. In addition, low-income workers find it difficult to purchase a property due to a lack of financing choices and the high interest rates on loans imposed by commercial banks.
How Does HavVest Plan to Contribute to the Real Estate Market Trend
As a real estate investment company that plans to potentially cater to the needs of people of all socioeconomic backgrounds, we have put measures in place to see that we take all the necessary steps to serve you better.
These measures include:
- Conducting market research
- Providing diverse housing options
- Offering flexible payment options
- Putting a priority on customer care to give our clients the best support possible
- Leveraging technology through the implementation of smart saving to enable you invest in your future
These methods are geared toward helping us establish a long-term company that provides long-term value to its consumers.
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Several events in Nigeria have caused many individuals to lose confidence and optimism in a country where everyone is supposed to have the capacity to create wealth through investing. However, remember “The darkest clouds come before the loveliest rain!”
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