Nigeria’s housing sector is emerging as a major source of employment, with more than 1,900 workers engaged during the excavation phase of a housing project in Gwagwalada, Abuja.

The Minister of Housing and Urban Development, Muttaqha Darma, disclosed this during an inspection of the National Housing Programme (NHP) estate and the Renewed Hope Civil Service Estate in Dukpa, Gwagwalada, Federal Capital Territory.

Darma said the construction industry was making a significant contribution to Nigeria’s economic growth while providing employment opportunities for citizens.

According to the minister, more than 1,900 people were employed during the initial excavation phase of the project, which involves the construction of 110 blocks of two-bedroom flats.

He described the housing industry as an important sector for employment generation and said this was one of the reasons the Federal Government was promoting increased housing construction across the country.

“The housing industry is really a very, very important industry to employ Nigerians. And that’s why we are promoting the industry,” Darma said.

The minister explained that the number of people employed on the project was expected to increase as construction moved into additional stages.

He said further work would require more personnel for building activities, machinery operations, general labour and concrete mixing, among other construction activities.

“Now you can begin to talk about the building work, the machinery work, the labourers, the mixing and others in the construction process,” he said.

FG targets more housing delivery

Darma also reaffirmed the Federal Government’s commitment to delivering more housing units across Nigeria before the end of the year.

He said the ministry remained confident that it would exceed President Bola Tinubu’s target of delivering 100,000 housing units to Nigerians before the end of his first tenure.

“We will surpass what Mr President promised, that 100,000 units of housing will be delivered to Nigerians before the end of his first tenure,” the minister said.

“We are moved to do it and we are going to do it,” he added.

The minister said the housing programme was part of wider government efforts to increase access to affordable housing while also using construction activity to stimulate employment and economic activity.

250-unit civil service estate targeted for completion

Darma further disclosed that the 250-unit Renewed Hope Civil Service Estate in Dukpa, Gwagwalada, was expected to be completed within six months.

He said the ministry would closely monitor contractors working on the project to ensure that they comply with agreed timelines and deliver the development within the specified period.

“Yes, it’s still possible. That’s why I asked the engineer on site to give me the work plan for each contractor,” he said.

According to the minister, each contractor was expected to submit an individual work plan early the following week.

The work plans would enable the ministry to monitor the progress of the different components of the project and measure performance against agreed milestones.

Darma said the ministry would continue to monitor the development closely and take the necessary steps to ensure that the six-month completion target was achieved.

The housing minister’s inspection comes as the Federal Government continues to use housing construction as part of its broader efforts to expand housing supply, support economic activity and create employment opportunities through the construction value chain.

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Kebbi’s 250-Home Estate Reaches 80% Completion

Construction of the 250-unit Kauran Gwandu Housing Estate in Kebbi State has reached approximately 80 per cent completion, according to Governor Nasir Idris.

The governor disclosed the project’s progress during an inspection of the development, where he expressed satisfaction with the quality of work and the pace of construction.

Idris commended the contractor for complying with the approved building specifications and maintaining the required construction standards.

He directed other companies handling government projects across the state to demonstrate a similar commitment to quality and responsible project delivery.

The governor warned that his administration would not accept poorly executed or substandard projects, stressing that contractors must ensure that Kebbi residents receive value for public funds.

He expressed confidence that the estate would be delivered within the stipulated period.

The development forms part of the Kebbi State Government’s efforts to improve access to decent and affordable accommodation for workers and other residents.

Idris said the government would consider awarding additional housing projects to the contractor if the current estate was completed successfully and in accordance with its approved specifications.

The proposed housing expansion would target state and local government employees, teachers, federal workers, media professionals and other categories of residents requiring suitable accommodation.

According to the governor, the objective is to give workers across different sectors a stronger sense of inclusion while improving their welfare and living conditions.

He also announced that the Kebbi State Government had acquired a housing estate previously owned by the Federal Government.

Idris said payment for the property had been completed and the necessary ownership documents secured.

Arrangements are now being made to award contracts for the completion of the outstanding units within the acquired estate under a federal mortgage arrangement.

The additional development is expected to complement the 250-unit Kauran Gwandu Housing Estate and increase the supply of formal housing in the state.

The governor reiterated that his administration would continue to implement projects capable of producing measurable benefits for residents.

For the housing programme to deliver its intended social impact, stakeholders will expect the government to provide clear information about the completion date, allocation criteria, selling prices and financing options available to prospective beneficiaries.

Transparent allocation and affordable repayment terms will be essential to ensuring that the completed homes reach the workers and households for whom they are intended.

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The Federal Government has warned that poor workmanship, substandard building materials and the activities of unqualified practitioners could undermine efforts to expand access to safe and affordable housing across Nigeria.

Secretary to the Government of the Federation (SGF), Senator George Akume, gave the warning in Abuja while chairing the 56th Annual Conference of the Nigerian Institute of Building (NIOB), themed “Repositioning the Building Profession, Advocacy and Policy Influence in Housing Delivery for a Sustainable Built Environment.”

Akume said Nigeria’s housing challenge required more than increasing the number of buildings constructed. He stressed that housing delivery must also focus on safety, affordability, durability and compliance with professional standards.

According to him, housing has implications beyond physical structures, as it affects household security, dignity, family stability, quality of life and the ability of Nigerians to build wealth.

The SGF identified several factors contributing to building failures in the country, including non-compliance with approved specifications, inadequate quality control, improper construction techniques, foundation problems and weak supervision on building sites.

He also warned certified builders against allowing their professional names or seals to be attached to projects they had not supervised. Such practices, he said, could weaken professional accountability and expose occupants to serious risks.

Akume called for greater public education on the consequences of poor construction, noting that defective buildings can result in substantial financial losses as well as loss of lives.

The government official also pointed to affordability as a major barrier to home ownership. Rising construction costs, he said, have made decent housing increasingly difficult for many Nigerian households to afford.

To address the cost challenge, Akume said the Federal Government was supporting the production of building materials across Nigeria’s six geopolitical zones. The initiative is aimed at increasing domestic production and helping to reduce construction costs.

He urged building professionals to contribute their technical knowledge, research capacity and industry networks to government housing policies and programmes from the design and planning stages through implementation.

Akume also encouraged professionals to work through consortia, introduce auditable quality-management systems, improve the training and certification of artisans, and deepen collaboration with government and reputable private developers.

Representing the Minister of Housing and Urban Development, Muttaqha Darma, the Director of Public Buildings, Musa Abdullahi, said recurring building collapses remained a serious concern for the construction industry.

Darma stressed the responsibility of builders in ensuring that construction activities comply with established engineering standards. He highlighted quality control, proper testing of materials and effective site supervision as important safeguards against construction failures.

He urged participants at the conference to develop practical recommendations capable of improving housing delivery and addressing persistent weaknesses within the sector.

Earlier, NIOB President Daniel Kolade said the institute was using advocacy and policy engagement to strengthen the building profession, improve construction standards and increase public awareness of the importance of hiring qualified professionals.

Kolade also identified quackery as a major challenge in the construction sector and advised Nigerians to engage properly qualified professionals when undertaking building projects.

The concerns raised at the conference come as Nigeria continues to grapple with the twin challenges of housing affordability and construction quality. For the housing sector, improving access to homes will therefore depend not only on increasing supply but also on stronger professional oversight, better materials, effective regulation and construction practices that protect the long-term value and safety of buildings.

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The meeting, set for February 20, 2025, at Radisson Blu in Ikeja, Lagos, will bring together industry experts, manufacturers, and policymakers to discuss ways to lower production costs and improve local access to building materials.

The government acknowledges that high production costs, limited access to incentives, and dependence on imported building materials have significantly hindered the growth of Nigeria’s housing sector.

As part of efforts to reverse this trend, the upcoming meeting will focus on strategies to boost local production, create an enabling environment for manufacturers, and strengthen public-private partnerships in the housing industry.

According to the Ministry of Housing and Urban Development, engaging with stakeholders is critical to formulating sustainable policies that will lower the cost of construction.

Experts argue that a reduction in building material costs will translate to more affordable housing for Nigerians, easing the burden on low and middle-income earners who struggle to own homes.

Festus Adebayo, Convener of the Africa International Housing Show (AIHS), has been invited to participate in the discussions. As a prominent advocate for housing sector reforms, Adebayo is expected to provide insights into how policy interventions and industry collaborations can drive cost-effective housing development.

Adebayo is among stakeholders that will champion calls for increased government support for local manufacturers, better financing options, and policy incentives that will reduce the dependency on imported materials.

The Africa International Housing Show has consistently advocated for practical solutions to Nigeria’s housing deficit and sees this engagement as an opportunity to push for industry-wide reforms.

The 19th edition of AIHS which will hold from the 26th to the 31st July 2025 at the prestigious Transcorp Hilton, Abuja Nigeria is another opportunity to further the conversation on how to reduce housing construction cost in order to provide affordable homeownership and boost businesses.

With the government’s renewed commitment to tackling the housing affordability crisis, stakeholders are optimistic that this meeting will lead to actionable steps that will bring down construction costs and accelerate housing delivery across the country.

The post FG Moves to Cut Housing Construction Costs, Engages Stakeholders Nationwide appeared first on Housing TV Africa.

Featuring the perspectives of real estate executives:

Jenni Bonura, President and CEO, Harry Norman REALTORS in Atlanta

Sophia DePallo, Realtor and Team Leader, Retsy Real Estate in Scottsdale, Arizona

Mike Golden, Co-CEO, @properties in Chicago and Christie’s International Real Estate

Seth Kaufman, Chief Sales Officer, ONE Sotheby’s International Realty in South Florida

Anthony Lamacchia, CEO, Lamacchia Companies Inc. in New England and Florida

Catherine Lee, President, Douglas Elliman Texas

Rob McGarty, Founder and Broker, Bushwick Real Estate Services in Seattle

What do you expect for the overall housing market for 2024? Up, down or stable? Why?

Jenni Bonura: The past few years have been marked by a notably tight inventory in the housing market. Transitioning into late 2023, we’ve seen a general uptick in inventory levels, although it’s important to note that some areas still face limitations. Looking ahead to 2024, the expectation is for the market to achieve a more balanced state and in some price points, where we may see a shift from a seller’s to a buyer’s market.

Alongside this, we should also prepare for the return of traditional seasonal market patterns. Interest rates, a pivotal factor, will undoubtedly continue to shape the market; with increases potentially dampening purchasing power and decreases likely to stimulate buyer interest and activity.

Anthony Lamacchia: I expect more of the same, a very similar year to 2023, but the first couple of months will be even slower than the horribly slow first couple of months than 2022. Reason being, we are going into 2024 with less inventory than we did in 2023, which is mind-blowing to think about.

Mike Golden: Similar to 2023, 2024 will be a challenging year, highly dependent on interest rates and inventory. If rates come down, we could see more inventory, but demand will increase too, which would put upward pressure on prices. That’s not necessarily a bad thing, as the Chicago market remains relatively affordable compared to other major U.S. cities. Election years tend to cause a bit of a market slowdown, too, so that’s something to watch in the second half. The transfer tax is another potential destabilizer in the city if it’s voted in. Similar to Los Angeles, Chicago could see a surge in luxury listings as sellers try to avoid the tax, followed by a pronounced drop in activity once it goes into effect.

READ ALSO: How should we regulate the real estate industry?

Catherine Lee: Because many homeowners have mortgages with interest rates under 4%, many have a hard time justifying a move. I think transaction volume will improve in 2024 when interest rates hopefully begin to stabilize.

Sophia DePallo: My short answer is: Up, but challenging. With the recent news that the Fed will hold off on interest rate hikes, I am expecting rates to continue to trend in the opposite direction we saw for 2023. As the rate of inflation stabilizes and continues to decline, I expect that interest rates will also continue to decline. 

For this reason, I am expecting a positive start to 2024 for many buyers, especially those who are waiting for slightly more palatable interest rates. However, limited inventory presents a challenge, and I predict this may create a tighter market.

Do you think any segments of the residential market will see growth in 2024? (new construction, rural, luxury, etc.)

Seth Kaufman: New developments, as buyers have the option to extend their deposit timeline and more favorable rates may become available over the next 12-24 months. Luxury homebuyers are also increasingly looking for properties that are completely move-in ready, and South Florida has a Rolodex of luxury developments in the pipeline, many already under construction.

Rob McGarty: I think we will see growth in both quantity and prices of new construction because buyer demand will increase as rates come down. I expect rural markets to continue to decline as demand for second homes wanes because the short-term rental market remains oversaturated and discretionary spending is reigned in. Value luxury as defined by some luxurious features like waterfront, acreage, prestigious location will remain brisk as there will be plenty of tech money flowing in town. Opulent luxury will slow down, and we’ll likely see price compression in that segment.

Lamacchia: Well, when you talk about growth, it’s confusing to people because they confuse total sales with average prices. I don’t even think we will see average prices going up in 2024. In fact, I think we will see them settle down a bit in certain segments of the market. As far as sales go, as I said, I think it will be the same.

Golden: New construction should remain strong due to low resale inventory and homebuilders’ ability to offer some mortgage rate relief with buydowns. I think we could see an uptick in downtown condo sales given, where rents are vs. the great values to be found in the market. If the new transfer tax passes, we could also see some city buyers — especially in that first luxury tranche — opting for the suburbs instead, creating growth in those markets.

READ ALSO: The 15 Largest Real Estate Companies In The World In 2023

Lee: I believe new construction will see increased growth because many resale homes are locked in at low interest rates for a long time. Developers have the ability to offer incentives, such as rate buy downs, that make new construction very competitive with resale homes.

Bonura: Consistency remains a hallmark of the real estate market cycle: homes that stand out in desirability, condition and pricing will invariably command top market prices and sell quickly. This applies across the board — to new construction, luxury homes, condominiums and more. As we see inventory expand, buyers will benefit from a wider selection of options. It’s important to acknowledge, however, that new construction may continue to face challenges such as labor shortages, rising material costs and expensive capital. Despite these hurdles, an increase in the supply of new homes is anticipated.

What will be the biggest challenges for agents in 2024? How can they overcome these challenges?

Lamacchia: I believe the challenges in 2024 will be the same as 2023. There are just not enough homesellers wanting to sell their homes because they do not want to give up their interest rates. The only way agents can overcome this is work harder to find sellers that want/have to sell. Those dealing with death/divorce/estate sale situations or move ups that absolutely have to move. Agents also have to be more accepting of the fact that they have to work with more buyers. Some agents are getting frustrated and confused, and we don’t need more buyers, we don’t need more sellers. They waste all kinds of time focusing on sellers and neglecting buyers. That’s a big mistake.

McGarty: The biggest challenges for agents this year will be agents who haven’t adapted from the fast-food mentality of the COVID market to our current fine-dining market, where every detail matters. The agents who are actually closing deals are working harder than ever to help their buyers and sellers, not posting on social media.

Golden: I like to look at challenges as opportunities. The market is going to go up, and it’s going to go down. This is why in robust times as well as slower times, it’s critical to communicate your value. This is especially true given the recent broker commission lawsuits. Make a business plan, communicate your value, keep your skill set sharp, always be prospecting and, especially, stay positive.

DePallo: If we continue to experience our current rate of low inventory, this will result in fewer transactions for a great number of real estate professionals. It will be even more important for agents to remain experts in local inventory and market conditions. Educating clients, both buyers and sellers, is all the more critical to successful transactions. 

Bonura: As we anticipate the market’s shift from a seller’s to a more balanced or buyer’s market in 2024, agents will help educate clients about the impact of these changes on property values. Precision in pricing becomes more crucial than ever as we guide clients through this transition. Additionally, effective marketing across various channels will be crucial for selling homes. Agents who can market well, use technology effectively and show deep market knowledge and expertise while delivering a first-class service experience will do well, especially when the market is changing.

Experienced and informed agents who understand pricing and negotiation will add more value for their clients. They can also mitigate problems during the buying or selling process with their strong business relationships and networks, leading to a smoother and more efficient experience for everyone involved.

Kaufman: The class-action commission lawsuits against NAR and certain brokerages is going to change the way business is done, and those agents who are fully prepared, knowledgeable and supported by a first-class organization will not only overcome these changes but thrive.

What do you think needs to happen for the market to improve?

Golden: [Co-CEO] Thad Wong and I have been asked this question a lot lately, and the truth is, no one really knows. We counsel our agents not to focus on the question of how or when the market will improve. Instead, focus on your business — the agents who focus on improving themselves in challenging markets will reap outsized rewards when the market improves. If you’re an agent, use this time to improve client service, communication and prospecting and networking, and increase your knowledge and skills.

DePallo: To accommodate the healthy bank of buyers waiting for better overall market conditions allowing them to realize the goal of homeownership, our inventory needs to grow significantly, and it would be wonderful to see interest rates in the fives. Anything lower would have to accompany greater economic challenges, and we want everyone to win in 2024. 

McGarty: It depends how you define “improve.” Improve as increased prices, increased volume, increased affordability? Either way, it’s a simple supply and demand problem. We’re short on supply, and demand is and always has been strong.

Lee: In order for transaction volume to grow, I think that either interest rates need to decrease or home costs need to come down to account for the increased rates.

Kaufman: There is a sense of uncertainty in the real estate industry right now given the historically high interest rates, fluctuations in the stock market and instability around the globe. We are fortunate for continued demand and stability in our market (South Florida) compared to others across the country. The road to a more secure real estate environment hinges on more palatable interest rates, achieving stability in the markets and a clear trajectory toward resolving the ongoing conflicts around the world.

Bonura: There is certainly a correlation between low mortgage rates and increased sales. However, we have seen that homes do sell across a wide range of mortgage rates, both when the rates are in the low single digits as well as the double digits. The challenge is when mortgage rates are constantly changing. The market thrives on stability, and frequent rate changes can lead to uncertainty, prompting buyers to delay their decisions or attempt to time their purchases. For the market to improve, a stable rate environment is essential. Lower mortgage rates would propel this even further, as lower rates tend to stimulate more activity in the housing market.

Lamacchia: The No. 1 thing that has to happen is interest rates need to come back down to earth. They are nearly three times what they were two years ago. It’s too much of an increase too fast. I believe they will start to cut down but not in any large way until we get into 2025 and 2026.

Source: Chicagoagentmagazine

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At the same time, it seeks to enhance rent-to-own housing programmes to provide better access to home ownership financing, as well as to increase supply of affordable housing in the country.

The MTR, published by the Ministry of Economy on Monday (Sept 11), said that “a new rental tenancy regulation will be introduced to promote rental as an alternative to home ownership”.

Putrajaya’s housing programme is to be guided by the concept of shelter as a basic need and human right, instead of home ownership, the review said.

“In this regard, the role of the public and private sectors will be crucial by actively participating in the provision of housing that is safe, secure, and affordable.

“Under this concept, the focus will be shifted from the development of housing for sale to rental,” the report read.

Government-owned affordable housing development bodies PR1MA Corporation Malaysia and Syarikat Perumahan Negara Berhad (SPNB) are to be aligned to support the shift, the report said.

Towards providing attractive and sustainable housing financing packages, the Ministry of Economy said collaborations with financial institutions will be pursued.

The expansion of the rent-to-own programme will be implemented to diversify housing financing options, it added. “This programme will enable the target group to rent with an option to purchase within a stipulated rental period,” it said.

Malaysia has had several rent-to-own programmes in the past, including under PR1MA and the Selangor state initiative Rumah Selangorku. Rent-to-own typically has smaller up-front costs, and allows some flexibility for those who have yet to decide on home ownership.

Towards managing housing construction costs, the ministry said a guideline to assess and standardise the charges for land premium and compliance costs will be developed to expedite the approval of development orders for affordable housing development.

“In addition, incentive packages for developers who obtain a score of more than 70% in the Quality Assessment System for Building Construction Works will be explored.

“Pre-approved plans developed by the Construction Industry Development Board will be adopted as a standard design to expedite building plans approval by the local authorities, thus facilitating faster and more efficient construction of affordable houses,” the report said.

Meanwhile, land inventory information that integrates all information on waqf land will be established to identify suitable land for more affordable housing, it added.

Read Also: How Land Use Act is delaying the process of housing development

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