The Lagos real estate Industry which accounts for an estimated 37% of the Nigerian real estate industry has grown significantly over the last five years. Housing demand in Lagos state is particularly driven by the state’s population density, estimated at 6871 person/Sq.km and the rising rural-urban migration, which remains in favour of Lagos. Accordingly, an estimated 187,500 housing units are required annually to keep up with the rising housing demand in the state. However, the housing growth rate remains relatively small, with an estimated 20,000 units constructed annually, following increased participation by private sector players in various segments of the Industry.
In our opinion, the rising rural-urban migration will remain a major determinant of housing demand in the near term, particularly in the residential segment of the Industry. Accordingly, we expect a rise in the Lagos State housing deficit, which is currently estimated at 2.5 million units.
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