With an estimated 2014 population of 195,875,237 Nigeria is currently the 7th most populous country in the world. As the population grows, so does the housing deficit, as the number of houses being built does not come close to the desperate need.
With an urbanisation rate of 4.39 percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken as the current average microloan size is only US$ 170. Housing production is approximately 100 000 housing units per year, which is inadequate considering the estimated 17 million unit housing deficit.
Given the economic slowdown, it is expected that there will be a slow recovery in the pure market driven activity within the housing market – government driven initiatives are expected to be the main driver of growth within the housing market. Market segment wise, the prime and luxury market segment is expected to face the slowest growth, while the mid-market is expected to grow the fastest. Currently, the luxury supply market is far outpacing demand, with many projects started during the oil boom years, coming to fruition now and remaining empty.