The poor provision of basic infrastructure amenities has led to a shortage of affordable housing supply that has continued to widen the housing deficit in Lagos State, a report by Proptech company, BuyLetlive, has stated.
It said the absence of inadequate amenities such as roads, water supply, and sanitation has hindered new housing developments with developers hesitant to invest in areas with poor infrastructure and limiting the growth of affordable housing supply.
The report read, “Inadequate infrastructure, such as roads, water supply, and sanitation has hindered new housing developments in the state. Developers are hesitant to invest in areas with poor infrastructure, limiting the growth of affordable housing supply.
“Several factors contribute to this situation such as rapid population growth driven by rural-urban migration, infrastructure challenges, land speculation, financial pressures, and the generally weak ‘funding and regulatory’ landscape in the country.
“Lagos is reputably the most stretched housing market in Nigeria with more than 10 per cent of the country’s 210 million estimated population. This migration has continuously increased the demand for housing, worsening the supply deficit.”
The report further revealed that the demand for affordable housing in the state has outpaced the rate of construction leading to a shortage of affordable housing.
It added, “As the city expands, available land becomes more insufficient and expensive, making it challenging for developers to build enough housing units to meet the teeming demand for affordable housing.
“Also, over the past years, the inflation on the cost of construction materials and labour has heightened, making it expensive for developers to build affordable housing units.”