Middle class demand reshaping developers’ interest in residential property

As Nigeria’s property market gears up for a rebound, the country’s growing middle class is significantly reshaping real estate developers’ interest in meeting residential property demands.

The new trend has seen a visible shift from condominiums to relatively affordable homes as developers move to subvert the concentrated high-end market and equally meet a surging demand for mini-residential units that cater to the middle- and low-income people who desire studios as well as one-, two- and three-bedroom apartments.

As part of efforts to realise this task, real estate developers are also exploring diverse ways to meet this growing demand. One of the most popular is through off-plan sales where developers woo investors and first-time buyers to fund their developments even prior to real construction with the hope of owning properties on delivery.

One of such initiatives is the Teju Royal Garden located in the Okokomaiko area of Lagos State, which is expected to deliver about 850 housing units of one-, two- and three-bedroom detached and semi-detached bungalows all selling for between N2.5 million and N8 million on outright sale, with available mortgage facility provided by Abbey Building Society plc and Resort Savings and Loans plc for budget buyers.

A2W Estates is also a new real estate firm that aims to build about 100 units of affordable mini-apartments comprising studio, one-bedroom, two-bedroom and three-bedroom flats in different neighbourhood in Lagos.

According to Olubusayo Akenro, managing director, A2W Estates, such development is borne out of the need to manage space effectively and provide affordable housing for low-income earners and younger generation.

Analysts believe that developers’ efforts to meet the needs of the growing middle class will not only boost the nation’s housing stock but will also increase homeownership rate which has remained visibly low at 25 percent.

GT Rich Realty Limited, a Lagos-based real estate firm, is also building two-bedroom apartments for mid-income earners at its new development, The Horizon, located in the heart of Lekki, a highbrow area in Lagos.

“Our decision to include mini-apartments to our new development is hinged on the need to provide affordable homes for mid-income earners,” said Azuka Ugboh, media director, GT Realty Limited.

The introduction of ultra-modern Ado Bayero Royal City, Darmanawa Kano by the Emirate Council of Kano, aimed at building one- and two-bedroom apartments on three floors for low- and mid-income earners, is also geared towards meeting this need.

By: ODINAKA MBONU