LThe head of Nigeria’s real estate agency, Ramos Realty, over the weekend denounced the country’s housing deficit which he said stands at around 20 million.
He also blamed the high cost of housing on inflation, which impacted the cost of building materials and land prices.
He noted, however, that access to mortgages can help fill the gap.
The company’s commercial director, Joshua Odimma, in an interview with reporters in Lagos, noted that many Nigerians are used to buying houses and other assets with huge financial implications out of pocket, but rarely consider the mortgages as an option to help finance their dream homes. .
Odimma added that Nigerians are just getting used to the cash lending culture in Nigeria.
He, however, pointed out that greater awareness around mortgages will help relieve the enormous pressure of a single, bundled payment and reduce the housing deficit.
He said, “Housing is capital intensive in Nigeria due to the high cost of construction resulting from inflation, soaring land prices and even unavailability of land.
“Housing’s high capital need has made long-term financing essential to foster affordability; especially for low and middle income groups.
“Houses can be affordable for many Nigerians if the government can help with a proper mortgage system in Nigeria.”
He, however, advised mortgage operators to make the application and approval process less cumbersome to allow full utilization.
“Government and even banks need to increase public awareness of mortgage benefits and processes. Both the public and private sectors should step in through the introduction of more specific policies and creative financing mechanisms to foster affordability,” he added.
He said the company has partnered with stakeholders to provide property finance solutions to Nigerians at home and abroad.