More than 70 percent of Lagos residents remain tenants, with many expenses between 40 percent and 60 percent of their income for rent, according to the Lagos State Housing Market Report on the deepening crisis.
According to the report, the rental load is higher in areas such as Lekki, Ikoyi and Victoria Island, where luxury apartments continue to increase despite the broader economic challenges.
The report on the Lagos housing crisis indicated that although the luxury real estate apartments and short -term apartments are booming, driven by the investment of the diaspora and the developers aimed at high -value clients of the network, the low -income housing segment remains insufficient and unattended.
The report was launched by the Real Roland Igbinoba Foundation for Housing and Urban Development (Rirfhud), painting a mixed image of persistent progress and inequality in the city's real estate sector.
The third edition of the Historical Report, presented at an event on Victoria Island, highlights the expansion of disparities between high -end developments and the fight for affordable homes in urban and peri -urban areas.
The report is based on field surveys, analysis of properties and satellite data, which makes it one of the most complete independent studies of the lake real estate landscape to date.
It is based on previous editions of 2009 and 2016 and is expected to say the future direction of investment and politics in the sector.
The new report revealed a 15 percent increase in the Lagos housing deficit of approximately 2.95 million units in 2016 to 3.4 million in 2025.
The report indicated a growing mismatch between the supply of the private sector and the real urban demand.
Among the key findings in the report are that Ikorodu, Badagry and Almsho identified themselves as areas with the highest demand for housing but a new minimum offer; Real estate prices increased by 12 percent year-on-year, despite the increase in construction costs and economic volatility and short-term rentals and services with services saw a 15-18 percent increase in yields in high-level areas, but vacancies rates are increasing in continental areas due to affordable concerns.
In addition, infrastructure gaps, particularly in drainage, access to the road and electricity, continue to cushion the viability of many residential areas.
As a respondent said: “The market is saturated with high -end apartments, but the middle class cannot keep up.”
Another important issue that arose from the interviews was the continuous difficulty in navigating the regulatory and administrative panorama of Lagos.
According to the report, developers reported that land and documentation titration processes have remained inefficient and expensive, adding between 15 and 20 percent to the general costs of the house.
“These administrative bottlenecks, combined with delays in obtaining development permits, are discouraging a new investment and decelerating the rhythm of residential construction,” reads the report.
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