Lagos State Deputy Governor, Obafemi Hamzat, has advised young people, particularly those at the early stages of their careers, to make housing decisions based on their income and financial capacity rather than rushing to secure independent accommodation.

Hamzat gave the advice on Thursday during a question-and-answer session on Nigeria Info FM, while responding to concerns over how a 22-year-old earning ₦100,000 monthly could afford a self-contained apartment or mini-flat costing about ₦1 million in annual rent.

The deputy governor said young Nigerians should not feel pressured to move out and rent their own accommodation immediately after getting a job if their earnings cannot comfortably support the cost.

He explained that living with parents, relatives or other family members was consistent with traditional living arrangements in Nigeria and could provide young workers with an opportunity to establish themselves financially before taking on higher housing expenses.

“Don’t let us misunderstand ourselves as a people. We are cultural people. Do you understand? So, if I start work as a young person and I’m not married, a lot of us live with our parents. A lot of us live with our cousins,” Hamzat said.

He also referenced living arrangements in countries such as Turkey, where young people may remain with family members or share accommodation while building their financial independence.

According to him, there is nothing wrong with starting with modest accommodation and upgrading as income increases.

“So, if you don’t start from the top self-contained, you don’t start from the top. You start from the average depending on,” he said.

Hamzat Sets 40% Rent Benchmark

Hamzat also advised workers against committing an excessive share of their earnings to accommodation.

He said spending more than 40 per cent of one’s income on rent was too high because workers still needed to cover food, clothing, transportation and other essential expenses.

“In fact, if you spend more than 40 per cent of your income on rent, it is too high because you must eat, you must buy clothes, you must do transportation,” the deputy governor said.

He encouraged young people to consider affordable housing options while developing a culture of saving and gradually improving their housing situation as their financial capacity grows.

Lagos Promotes Mortgage Financing

Beyond the issue of rental affordability, Hamzat said the Lagos State Government was promoting mortgage financing as an alternative route to homeownership.

He explained that purchasing a property through a single upfront payment was beyond the reach of many Nigerians, making mortgage financing necessary for expanding access to homeownership.

According to him, the Lagos State mortgage board was established to provide financing options to residents who can demonstrate their ability to repay.

“But, you know, the challenge is we cannot continue to buy houses the way we buy rice and yam. Do you understand? So, we must buy properties using a mortgage, and that’s why we have a mortgage board in Lagos,” Hamzat said.

LASRRA Identification to Support Mortgage Assessment

Hamzat also explained how the Lagos State Residents Registration Agency (LASRRA) identification system could support the mortgage process.

He said the system could help establish a resident’s identity, address and place of employment, information that could assist lenders in assessing an applicant’s ability to repay a housing loan.

“So, that’s why we said people must have LASRRA number, so we can know that, okay, you live in Lagos. This is where you live. This is your address. This is where you work. So that there is a credit bill that checks everything that says, okay, you can pay,” he said.

₦7m Property Example

Using a ₦7 million property in Bisedi as an example, Hamzat explained how mortgage financing could allow a prospective homeowner to spread the cost of the property over several years.

He said a buyer could make an initial payment of 10 per cent, equivalent to ₦700,000, and repay the outstanding balance over a 10-year period.

“So, if a flat in Bisedi, which is seven million naira, you pay 10 per cent with 700,000, and over 10 years, you are able to pay monthly,” he said.

Hamzat added that the monthly repayment would depend on the buyer’s income and ability to repay.

“Some people pay 25,000 monthly or 35,000, whatever it is, depending on your income,” he said.

According to him, mortgage financing provides residents with an alternative to paying the full purchase price at once, which many prospective homeowners may not be able to afford.

“That is the way to go because we know that a lot of people will not be able to afford to pay a one-shot deal,” he said.

Hamzat Urges Young People to Start Small

The deputy governor encouraged young Nigerians to begin with housing they can afford while developing a consistent savings culture and working towards eventual property ownership.

He said young workers should not feel that they must immediately secure expensive accommodation when they are just starting their careers.

“But the bottom line is, like I said, the culture of ability to save, so that if people see that you can save money, then I can give you a property.

“It doesn’t have to be, if you are a young person, you can start with one bedroom or even a self-contained, like you explained,” he said.

Housing Affordability Linked to Income

Hamzat acknowledged that housing affordability cannot be separated from the wider economic environment.

He stressed the need to improve residents’ earning capacity so that more Nigerians can afford decent accommodation and eventually own homes.

“What is important is we must also build our economy in such a way that people earn better, you understand, so that everybody can be uplifted, and that is the bottom line,” he said.

He added that reducing the cost of goods and services would also help residents manage their incomes and make more sustainable housing decisions.

“The cost of buying things is what we need to fix first, and then when we fix that, which is what the Federal Government is doing now, then we’ll be able to talk a lot more about other pillars that stop on top of that,” Hamzat said.

The post Lagos Deputy Governor Urges Young Workers to Consider Living With Parents Over High Rent appeared first on Housing TV Africa.

Property developer Messrs Alexander Limited has called for stronger compliance with building regulations and construction standards as Nigeria seeks to expand housing supply while addressing concerns over building safety.

The Lagos-based firm said effective supervision throughout the construction process was critical to preventing structural defects and protecting the value of residential properties for both homeowners and investors.

The company made the position known during an inspection tour of the 21-storey 16 Alexander residential development in Ikoyi, Lagos. Representing the Executive Chairman, Mr Napoleon Esemudje, a company representative said the developer was committed to using quality materials and meeting applicable construction requirements throughout the project.

The development is being constructed on a 4,276.216-square-metre site in Ikoyi, one of Lagos’ established residential districts. When completed, the project will comprise 54 luxury apartments, made up of 26 two-bedroom and 26 three-bedroom units across Wings A and B, alongside a duplex in each wing.

The project has brought together several specialist firms. Cappa and D’Alberto Plc is responsible for the principal construction and civil engineering works, while Baron Architecture is the lead architectural consultant. Trevi Foundations is undertaking piling and deep foundation works, with Lambert Electrics Limited responsible for mechanical, electrical and plumbing installations.

The development is planned to include an indoor swimming pool and lounge deck, gym, steam and relaxation facilities, indoor sports areas, a yoga and meditation space, residents’ social areas, concierge and security services, as well as city views.

It will also provide 150 parking spaces. Each apartment is expected to have two dedicated parking spaces, with additional spaces available for visitors.

Esemudje said the development was intended to provide lasting value for purchasers, describing it as a long-term asset designed with durability in mind. He said buyers should be confident that the apartments were being constructed to high standards and would retain value for future generations.

The project’s Marketing and Real Estate Consultant, Dr Meckson Okoro, said construction had reached the 17th floor, leaving four floors before the 21-storey structure is completed. Delivery is scheduled for December 31, 2027.

Okoro said maintaining close oversight during construction was important not only for structural safety but also for protecting the investment and future rental prospects of subscribers. He added that high-rise developments required consideration of the interests of the public and other stakeholders from the foundation stage through completion.

The Project Manager of Cappa and D’Alberto Plc, Mr Prabal Chakrabarti, said the project was being executed by qualified professionals and subjected to several levels of inspection.

According to Chakrabarti, work is internally certified before concrete is cast, after which the consultants, including Baron Architecture and structural engineering consultants, conduct their own inspections. The client’s consultants, CDH, then review and approve the work before casting proceeds.

He also said officials of the Lagos State Building Control Agency inspected key structural elements, including reinforcement, columns and slabs, before approvals were granted for concrete casting.

The company said the project was being executed in line with safety requirements and international quality standards, particularly in response to concerns surrounding building failures in parts of Nigeria.

The emphasis on construction quality comes as Nigeria continues to face a significant housing shortage, making the delivery of safe and durable housing increasingly important. Beyond increasing the number of housing units, developers, regulators and construction professionals must ensure that new developments meet required structural and safety standards.

For high-density urban areas such as Lagos, where vertical development is increasingly important because of limited land availability and rising demand, effective building control, professional supervision and quality assurance remain central to protecting lives, property values and confidence in the housing market.

Developer stresses construction quality

Property developer Messrs Alexander Limited has called for strict compliance with building standards in Nigeria.

The company said strong construction controls can improve building safety and protect property values.

The developer made the call during a tour of the 21-storey 16 Alexander residential project in Ikoyi, Lagos.

A representative of the Executive Chairman, Mr Napoleon Esemudje, said the company would maintain strict quality controls throughout the project.

The representative also assured potential investors that the developer would use premium materials. The company will also follow all relevant building regulations.

21-storey project takes shape in Ikoyi

The Alexander Tower sits on a 4,276.216-square-metre site in Ikoyi, Lagos.

The project will contain 54 luxury apartments. These include 26 two-bedroom and 26 three-bedroom units across Wings A and B.

Each wing will also have a duplex.

The development will offer several facilities for residents. These include an indoor swimming pool, lounge deck and fully equipped gym.

Residents will also have access to steam and relaxation rooms. The project will include indoor sports facilities, a yoga and meditation area, and social spaces.

The development will also provide 24-hour concierge and security services.

In addition, the project will have 150 parking spaces. Each apartment will receive two dedicated parking spaces. Visitors will also have access to additional parking.

Construction reaches 17th floor

Dr Meckson Okoro, the project’s Marketing and Real Estate Consultant, said construction had reached the 17th floor.

Four more floors remain before the tower reaches its planned 21 floors.

Okoro said the developer expects to complete the project by December 31, 2027.

He also stressed the need for close monitoring as construction continues.

According to him, proper supervision will help protect the building’s structural quality and long-term investment value.

He said buyers should have confidence in the safety of their investment.

Okoro also said high-rise construction must consider more than the developer’s commercial interests.

He said developers and professionals must protect residents, investors and the wider public from the foundation stage to project completion.

Multiple firms oversee construction

Cappa and D’Alberto Plc is handling the main construction and civil engineering work.

Baron Architecture serves as the lead architectural consultant.

Trevi Foundations is responsible for piling and deep foundation works.

Lambert Electrics Limited handles the mechanical, electrical and plumbing installations.

Mr Prabal Chakrabarti, Project Manager at Cappa and D’Alberto Plc, said qualified professionals were working on the project.

He said the project team also carries out several inspections before each concrete casting exercise.

According to Chakrabarti, the construction team first checks and certifies the work internally.

The consultants then inspect the work. Baron Architecture and the structural engineering consultants take part in this process.

The client’s consultants, CDH, also review the work before the team proceeds with concrete casting.

Officials from the Lagos State Building Control Agency also inspect key structural elements.

These include reinforcement, columns and slabs.

Chakrabarti said the team only proceeds with concrete casting after receiving the required approvals.

Focus on safety and long-term value

The project team said it takes structural safety seriously, especially amid concerns about building collapses in Nigeria.

Chakrabarti said the company follows safety procedures and international quality standards during construction.

The developer also plans to appoint a professional facility management company after completion.

The planned approach highlights the importance of quality control beyond the construction phase. Proper maintenance can also help preserve the condition and value of a residential development.

Wider housing sector implications

Nigeria faces a major shortage of housing, increasing the need for new residential developments.

However, increasing housing supply also requires strong attention to safety and construction quality.

This is especially important in major cities such as Lagos, where high-rise developments can help developers make better use of limited urban land.

For investors and homeowners, building standards also have a direct link to property value. Strong construction practices can reduce safety risks and help protect the long-term performance of residential assets.

The Alexander Tower project therefore highlights a wider issue facing Nigeria’s housing sector: the country needs more homes, but it also needs homes that meet required safety and construction standards.

The post Developer Urges Strict Building Standards as Housing Demand Rises appeared first on Housing TV Africa.

The informal land market is attracting increasing attention from real estate investors in Nigeria, driven by its speed, flexibility, and lower transaction costs compared to the formal system.

A report by Northcourt Real Estate notes that both formal and informal land markets exist in Nigeria, but they operate under very different frameworks. While the formal system is governed by state law and registration processes, the informal market operates largely outside official regulatory structures.

Weak Formal System Drives Informal Market Growth

According to the report, Nigeria’s formal land system is often slow, rigid, and complex, making it less attractive to investors seeking quick transactions.

It also noted that only about 5 per cent of Nigeria’s land mass is formally registered, leaving as much as 95 per cent as “dead capital” that cannot be easily used for collateral, mortgages, or formal investment.

In contrast, the informal market offers quicker access to land, wider location choices, and more affordable prices, especially in fast-growing urban areas.

The report added that in some cases, government-backed regularisation programmes later help buyers convert informal holdings into legally recognised property.

Structural Barriers Shape Investor Preference

The report attributed the dominance of informal transactions to outdated regulations, rigid planning systems, and centralised land administration processes.

It noted that when formal systems fail to allocate land efficiently, individuals and investors naturally turn to alternative channels where transactions are faster and more accessible.

Land remains a highly valuable but passive asset, with strong demand across residential, commercial, agricultural, and industrial uses, particularly in urban centres.

Urban Expansion Reshaping Agricultural Land

The report also highlighted the growing pressure of urbanisation on agricultural land, particularly in Lagos and other major cities.

It cited research showing that farmland in Lagos has steadily declined over the past four decades, while built-up areas expanded significantly.

Between 1984 and 2024, developed land increased by over 22,000 hectares, while farmland and natural landscapes declined at varying rates depending on the period.

From 2013 to 2024, farmland loss accelerated further, with sharper declines recorded in forest cover, open spaces, shrublands, and water bodies.

Rising Land Prices Linked To Scarcity

The continued conversion of farmland and open spaces into residential and infrastructure developments has intensified pressure on available land, contributing to rising land prices across urban centres.

Urban farming, once seen as a viable livelihood option in cities like Lagos, is also declining due to increasing land demand for housing and commercial projects.

Experts note that although urban agriculture is gradually gaining recognition, competing development pressures continue to push agricultural land into residential and industrial use.

The post Informal Land Market Gains Ground As Formal System Lags Behind appeared first on Housing TV Africa.

Luxury apartment rents in Abuja and Lagos have reached unprecedented levels, with annual prices in prime locations now starting from N20 million and, in some cases, exceeding N75 million.

Analysts attribute the surge to rapid urban migration, limited housing supply, high construction costs, and weak regulatory oversight in the rental sector.

As Nigeria’s political and commercial hubs, Abuja and Lagos continue to attract workers, investors, and businesses faster than new homes are constructed, intensifying competition for upscale residential units.

The housing shortage has created affordability challenges, particularly for low- and middle-income earners, and is widening the gap between premium and standard housing markets.

Prime Luxury Locations in Abuja

• Guzape: A high-end district featuring modern estates and luxury apartments. Three-bedroom units rent from N20 million annually, with some blocks of flats reaching N75 million.
• Maitama: Known for embassies and top-tier residences, three-bedroom apartments rent around N7 million per month, with some units fetching N40 million annually.
• Asokoro: Four-bedroom terraced duplexes rent for approximately N25 million per year, offering privacy and proximity to government institutions.
• Wuye: Centrally located with a mix of gated estates and apartments, five-bedroom detached duplexes rent for N25 million annually.
• Jahi and Katampe: Emerging districts with four-bedroom duplexes renting for about N20 million per year.

Lagos High-End Rental Market

In Lagos, premium residential areas such as Ikoyi, Banana Island, Eko Atlantic, Victoria Island, and Lekki Phase I have seen substantial rent increases:

• Ikoyi: Three-bedroom apartments now average N25 million annually.
• Eko Atlantic City: One-bedroom units cost N20.9 million, while three-bedroom apartments average N35.3 million.
• Banana Island: Three-bedroom apartments rent for N27.5 million annually.
• Victoria Island: Three-bedroom apartments average N15 million per year.
• Lekki Phase I: Three-bedroom units rent for around N11.2 million annually.

The surge in rental prices reflects broader economic pressures, including persistent high construction costs, elevated interest rates, and continued demand from affluent Nigerians and expatriates.

Despite inflation easing to 16.05% in October 2025, the Monetary Policy Rate remains high at 27%, contributing to rising housing costs.

According to Edala Development, Lagos’ residential sector continues to expand due to increased investment in luxury estates and continued urbanization, while Abuja’s growth in high-end apartments has similarly outpaced available supply.

Construction activity rose by 9.9% in nominal terms in Q1 2025, with real-term growth of 5.57% in Q3 2025, highlighting strong investor confidence in the luxury property market.

However, limited affordable housing options and rising demand for upscale living, Abuja and Lagos remain hotspots for luxury property investment. High-end apartments in these cities are not only attracting wealthy Nigerians but also foreign investors and expatriates seeking premium rental accommodations.

The post Luxury Apartments in Abuja and Lagos: Rent Prices Surge Amid Housing Shortage appeared first on Housing TV Africa.

Nigeria’s new Tax Act will take effect come January 2026, ushering in one of the most significant overhauls of the nation’s fiscal framework in decades. Designed to align with global standards, the law is expected to reshape the real estate and housing finance landscape but experts warn its success hinges on effective implementation, transparency, and consistent engagement.

A New Era for Real Estate and Property Investment

The Nigeria Tax Act 2025 introduces tougher anti-evasion measures, including a “top-up tax” on multinational corporations, stricter Controlled Foreign Company (CFC) rules, and more comprehensive definitions of taxable capital gains. Though primarily targeting foreign entities, these provisions will reverberate through Nigeria’s property sector, where many large projects rely on offshore financing through Special Purpose Vehicles (SPVs).

Developers could face higher taxes and tighter reporting requirements under the Federal Inland Revenue Service (FIRS), while property disposals will now attract Capital Gains Tax (CGT) on actual profits closing long-standing loopholes that allowed tax avoidance through share transfers instead of asset sales.

Stamp Duties and Luxury Property Tax

One major flashpoint is the adjustment of stamp duties on property leases above ₦10 million, which experts say could further inflate housing costs in cities like Lagos and Abuja. Similarly, a proposed 1.5% annual luxury property tax on high-end homes in areas such as Ikoyi and Maitama aims to increase revenue from wealthy homeowners but may distort the upper property market.

Impact on Developers and Mortgage Institutions

Developers and lenders are bracing for higher compliance costs and thinner margins. While the reforms may initially raise borrowing costs, experts believe long-term gains are possible if revenues are reinvested into housing infrastructure and mortgage credit.

The Real Estate Investment Trust (REIT) segment could also see changes. Though currently enjoying tax exemptions under FIRS rules, inconsistent interpretation of the new provisions could unsettle investors, highlighting the need for regulatory clarity.

Opportunities Amid Uncertainty

According to Ayo Ibaru, CEO of Northcourt, exempting residential properties from VAT and expanding recoverable input VAT to cover construction services could ease cost pressures. He urged the government to complement reforms with tax incentives for green and affordable housing.

Dr. Roland Igbinoba, President of Proptech Nigeria, described the law as transformative but warned of short-term pain. “CGT has moved from 10% to 30%. Developers must plan carefully, but over time, the law will bring greater transparency and predictability,” he said.

Estate valuer Olufemi Oyedele called for targeted reliefs to protect affordability. “Authorities should tax empty houses and channel proceeds into mortgage support for low- and middle-income buyers,” he advised.

Balancing Reform and Reality

Experts agree that implementation will make or break the reform. Without transparent processes, data-driven valuation systems, and active engagement between government and stakeholders, the benefits could be lost to confusion and overregulation.

The new tax regime marks a critical juncture for Nigeria’s real estate industry, one that could either unlock sustainable financing for affordable housing or deepen existing market imbalances, depending on how policymakers strike the balance.

By: CHINEDUM UWAEGBULAM

Source: Guardian

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In a bold stride toward bridging Nigeria’s housing deficit, AceRoyal Estates Homes has announced that its flagship development, Eko Paragon, is on track to deliver 105 high-end residential units within the next 12 months.

Located in the Abijo Government Reserved Area (GRA) of Lagos, the development is redefining urban living by blending five-star hotel standards with residential comfort and long-term investment value. Construction began in February 2025, and according to the company’s managing director and chief executive officer, Endurance Cletus Agonor, the project is progressing ahead of schedule. As of October, 41 homes are fully completed, fitted, and ready for occupation.

Agonor noted that the estate was conceived to offer luxury that is not only aspirational but attainable. Developed in partnership with the Lagos State Property Development Corporation (LSPDC), Eko Paragon is designed to reflect a balance between exclusivity and accessibility. “This is our vision of affordable luxury,” Agonor said. “We are not just building homes, we are delivering lifestyle, security, and long-term value.”

Eko Paragon offers a mix of one-bedroom executive business suites, two-bedroom signature apartments, and three-bedroom terrace duplexes with boys’ quarters. Each residence is defined by spacious layouts, refined finishes, and a thoughtful approach to comfort. Kitchens are built with convenience and style in mind, while bathrooms are unusually large, some exceeding the size of typical boys’ quarters in nearby developments.

The estate’s design is anchored by a commitment to wellness, sustainability, and green living. With just 32 percent of the land developed, residents will enjoy expansive green spaces, fitness and recreation facilities including a fully equipped gym, tennis courts, and walking areas. Every unit is allocated two private parking spaces, with generous visitor parking also provided. Power supply is guaranteed 24 hours a day, ensuring uninterrupted comfort for all residents.

What truly sets Eko Paragon apart is its promise of hotel-style living. Residents will have access to concierge-level services such as breakfast in bed, on-call chefs, laundry and cleaning—privileges typically associated with five-star hospitality. “We are offering the everyday experience of hotel luxury, but in your own home,” Agonor said. “It’s a game changer in the Nigerian real estate sector.”

Situated just 10 minutes from the Lekki-Epe Expressway, Eko Paragon enjoys a prime location in what remains the only GRA on Lagos Island. The area’s secure and serene environment adds to the estate’s appeal, positioning it as an ideal choice for both homeowners and investors seeking capital growth and lifestyle quality.

Agonor emphasized the level of craftsmanship and engineering behind the project, citing the use of top-tier materials, deep foundation work, and scenic landscaping as key indicators of the brand’s long-term vision. “For us, excellence isn’t a promise, it’s a standard,” he said. “Every detail, from structure to finishing, is designed to protect and grow the value of your investment.”

With handover set to be completed within a year, Eko Paragon is not just a residential estate, it is an emblem of modern Nigerian living, and a statement of what’s possible when ambition meets execution.

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