2. About the Report
TRENDS
Lagos State remains the commercial nerve of Nigeria with a high concentration of business activities and is at the
moment, the most progressive in terms of infrastructure in Nigeria. Facebook spatial data of users within the country
shows that human migration was particularly high in Lagos with migration rate growing by 18.6% between 2000 and
2012. A policy brief from the state government’s Economic Intelligence Unit puts the population of Lagos at 20.19
million; which is growing at a rate of 3.2% per annum while its urbanization rate is 16%. There are 20,000 persons per
square kilometer and a daily intake of 3,000 people coming in from other states. Being the top travel destination,
accommodation becomes huge puzzle especially when the low and middle income class is being discussed.
Supportive framework for providing adequate shelter has been set up by the Nigerian government in an effort to
alleviate the housing deficit which currently stands at 17million units. The introduction of the National Housing Policy in
2006 and the Nigerian Mortgage Refinance Commission have to an extent, created a more flexible environment for the
private sector to participate in housing development. The Lagos State government is directly involved in constructing
more homes under the LagosHoms scheme but the continuous surge in population is not matched with speedy delivery
of affordable homes. The extent of housing shortage is enormous. In 2 years, government efforts have yielded not more
than 10,000 affordable housing units which is a short fall from the projection of 224,000 housing units needed annually.
3. About the Report contd..
COMPETITIVE LANDSCAPE
The high housing demand has spurred increased participation by the private sectors including banks, construction
firms, real estate developers, mortgage lenders and individual investors. Several new developments and housing
estates have been constructed with good roads, security, water, recreational facilities and other supportive
infrastructure. The luxury market is thriving with leading brands such as the Eko Atlantic developing high rise
apartments with state of the art technology. Developers have built strong brand loyalty and are well positioned in the
prime market. The luxury segment benefits from the absence of well serviced apartments, inadequate power supply,
poor city planning and many more inadequacies which do not cater to the needs of a rising number of high net worth
individuals currently at 15,400 persons in Lagos. The luxury market has experienced growth due to increased earnings
of individuals and groups.
PROSPECTS
2015 was not a very good year for the Nigerian real estate market. The country’s financial crisis from oil price crash and
naira devaluation has resulted in a slow property trading and a change in home buyers spending habits. Less people
are prepared to buy houses than there are for rent.
New market interests have developed in the affordable housing and luxury market. We have collected data in specific
towns weighing their purchasing power and consumer behavior. A concentration of high income earners and a dense
population in Ajah is mismatched with poorly managed apartments especially in the Ajah-Badore axis. An unserviced
studio apartment currently rents for N250,000 per annum compared to N350,000 for a serviced one. We foresee a rise
in demand for serviced apartments in the Ajah axis of Lagos with favorable demographics. This is a class of luxury
already gaining market acceptance considering the cost, time and inconvenience involved in self-servicing an
apartment every year. Our insight further expands to discoveries in other locations covered in this report.
4. More on the Report
Discover the latest market trends and uncover sources of future market growth for the real estate industry in Nigeria
with research from Pison Housing's team of analysts. Find hidden opportunities in the most current research data
available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our
expert qualitative analysis and growth projections. If you're in the property market in Lagos, Nigeria, this report serves
as a market intelligence tool. Our research will save you time and money while empowering you to make informed,
profitable decisions.
The State of Lagos Housing Market research report includes:
• Analysis of Key Supply-side and Demand trends
• Detailed Segmentation of International and Local products
• Historic and Current data on housing statistics in Lagos
• House Price Index-measuring the house price level across major districts
• Luxury Consumer Insight
• The Average Consumer’s Demands on housing by specific towns and districts
Why buy this report?
• Gain competitive intelligence about market leaders
• Track key industry trends, opportunities and threats
• Inform your marketing, brand, strategy and market development, sales and supply functions
5. State Macroeconomic Overview
2011 2012 2013 2014 2015 2016
GDP (NBn) 16,447.23 18,508.499 20,857.735 22,943.528 25,237.881
Public Debt($Bn) 0.49 0.61 0.94 1.17 1.21
Domestic Debt (NBn) 201.5 230.4 278.9 268.1
Total Budget (NBn) 445.2 485.3 499.1 489.7 489.69 662.6
Internally Generated Revenue 202.8 219.2 237.1 276.2
Allocation to Housing & Community
Amenities(NBn)
26.76 42.8 62.7 50.5 49 62.7
Allocation to Housing & Community
Amenities(%allocation)
5.94% 8.8% 12.6% 10.3% 10% 9.5%
Key Economic Indicators- Lagos State
7. Lagos HOMS
The Lagos State Home Ownership Mortgage Scheme is an initiative by the Lagos State Government
to serve as a stimulus package for equity-supported access to home ownership for residents of the
state. Using a special framework for sustainable and affordable mortgage regime in the state, the
initiative set out to achieve:
• Provision of affordable homes of various types and various sizes across the state
• Provision of access to mortgage finance for residents of Lagos State who are First-Time-Buyers
to purchase these homes.
• The emphasis on first-time-buyers is to avoid purchase by multiple property owners who may
distort the intention to meet the enormous housing demand. “First-Time-Buyer according to
this initiative refers to residents who are entering into the property market for the first time and
do not own any home within the territory of the state.
State Housing Development
8. State Housing Development (contd)
Other Criteria For The Lagos Homs Project Include:
• Proof of tax payment for the last 5 years
• The minimum mortgage term 10 (Ten) years
• Applicants who are successful at the draw are required to make an initial down
payment equal to 30% of the value of the home applied for.
• There is a 6% interest rate on the loan
• The Lagos HOMS also has plans to partner with the NMRC for future projects.
14. Luxury Residential Market (contd)
Preferred Payment Plan
xxx xxx xxx xxx
Monthly Earnings
xxx xxx xxx xxx
“xxx”-Figures have been excluded from this sample. Data and all details available in the report
15. Luxury Residential Market (contd)
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Entrepreneur Government Salary
Earner
Private Salary Earner
Preferred payment plan for different categories of earners
xxx xxx2 xxx3
%people considering luxury home purchase or rent
xxx xxx xxx xxx
“xxx”-Figures have been excluded from this sample. Data and all details available in the report
16. Luxury Residential Market (contd)
Reasons for owning a luxury home
xxx xxx xxx xxx
Rent Vs. Buy a Luxury Home
xxx xxx xxx xxx
“xxx”-Figures have been excluded from this sample. Data and all details available in the report
19. Housing Demand Analysis (contd)
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
“xxx”-Figures have been excluded from this sample. Data and all details available in the report
20. Housing Demand Analysis (contd)
“xxx”-Figures have been excluded from this sample. Data and all details available in the report
26. Housing Demand Analysis (contd)
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
“xxx”-Figures have been excluded from this sample. Data and all details available in the report
28. Housing Demand Analysis (contd)
xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx
“xxx”-Figures have been excluded from this sample. Data and all details available in the report
35. Roland Igbinoba House Price Index
A House Price Index (HPI)
measures the change in prices
of residential properties or
houses, both old and new,
bought by households. By
measuring price changes, the
growth rates of house price
indices track house price
inflation. Investors are guided
on timing of investment,
property owners are able to
make better decisions on
whether to hold off selling
property till price appreciates
or sell immediately before
price drops sharply. Typically,
house price indices are
computed quarterly or
monthly and we have
computed the house price
index quarterly from Q2, 2015
to Q1, 2016. See full table in
report.
36. Roland Igbinoba House Price Index (contd)
Chart removed. See report for complete details
Q1, 2016
