Lagos’ housing ambitions are being constrained less by a lack of demand than by short-term financing, rising construction costs, weak purchasing power, infrastructure gaps and regulatory bottlenecks, according to experts at GTI’s Beyond Rent: A Lagos Housing and Capital Forum.
Lagos faces a housing deficit running into millions of units. In May, Lagos Commissioner for Housing Moruf Akinderu-Fatai put the deficit at more than 3.3 million units, while Estate Intel’s 2025/2026 Lagos Real Estate Development Pipeline Report estimated it at more than 2.7 million units. While the estimates differ, both highlight the scale of the gap between supply and demand.
For developers, one of the biggest problems is the mismatch between project timelines and available financing. Tolu Bawa-Allah, managing director of Prindex Properties, said developments can take two, three, five or even seven years, while financing is often available for only 12 to 18 months.
“It’s always an issue trying to find patient funds that can match our development life cycle,” Bawa-Allah said.
But supply is only half the problem. Dr Bola Adigun, West Africa Economics Leader and partner at Deloitte, said weak purchasing power is limiting the ability of residents to buy the homes being developed. She noted that much of the pipeline is above N200 million, while only a limited number of Nigerians can afford homes at that level.
Adigun argued that government should focus on infrastructure and opening up growth corridors outside major city centres, allowing private developers to expand supply into areas where land is more accessible.
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