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Per this recent report, 75% of Nigerians today are tenants in major cities across the nation. With a nationwide annual growth rate of 2.5%, the need for housing is apparent.
And with the UN projecting a 2X Nigerian population by 2050, i.e. 400 million+ people, a critical question looms large - How to affordably house them all?
Where the issue lies
Just in case you're wondering, it's not about land mass; Nigeria is West Africa’s second-largest country with 923,768 square kilometres of land surface area. Yet, 51.96% stay in overpopulated cities and at present rates, this figure could keep doubling in 15-20 year cycles.
Other pertinent issues:
1️⃣ Breakdown of water supply, city transport, waste disposal, and electricity distribution systems.
2️⃣ Unavailability of affordable housing.
3️⃣ Skyrocketing rentals and housing prices in urban areas.
Can Proptech Help?
Nigerian proptech firms bagged a total of USD2 million in funding last year and pundits believe that the answer to the country’s urban woes lies in technology.
🌐 RentSmallSmall is based in Lagos and offers instalment rental payment options. It is a step towards affordability.
🌐 Seventh Space is building homes for average Nigerians by tapping under-utilized properties and unused plots. They’re already working on better building materials and factory-assembled production lines.
🌐 PropertyPro.ng is building a centralized database for more transparency in the market.
And they are not alone; proptech deals are increasing throughout Africa. The collaborative approach is working for stakeholders in construction, user experience, finance and other regulatory segments.
Bigger solutions
📌 Technology-driven private financing for customers, ensuring higher market liquidity, thereby balancing the market and enhancing affordability.
📌 Licensing of trained real estate agents as well, in line with the latest Government regulations.