The Minister of Housing and Urban Development, Ahmed Dangiwa, has announced that the Nigerian government aims to reduce mortgage interest rates to 12% as part of its efforts to make homeownership more accessible to Nigerians.

Speaking at the Saudi Arabia Real Estate Forum, Dangiwa highlighted the enormous opportunities in Nigeria’s real estate sector, particularly within the government’s Renewed Hope Cities and Estates Programme.

Dangiwa stressed the urgent need for housing in Nigeria, where the housing deficit is estimated at 28 million units, and urged international investors to partner with the government in addressing the shortfall. He also noted that the real estate sector contributed 5.2% to Nigeria’s GDP in 2024, with projections indicating that the market will reach N2.25 trillion by the end of 2025.

Historically, high mortgage interest rates, ranging from 28% to 30%, have made homeownership unaffordable for many Nigerians. To combat this, Dangiwa revealed plans to introduce a Real Estate Investment Fund offering lower mortgage interest rates, including a 12% rate. Additionally, the government is expanding and recapitalising the Federal Mortgage Bank of Nigeria with N500 billion to offer more accessible mortgage products.

The minister also announced the introduction of rent-to-own schemes, which would allow applicants to pay rent in installments instead of upfront payments. He emphasized that the government is working to strike a balance between profitability for developers and affordability for buyers through incentives like off-take guarantees, land access, and low-interest financing.

HOUSING IS A RIGHT NOT A PRIVILEGE

On sustainability, Dangiwa outlined efforts to incorporate green building practices into Nigeria’s housing development through partnerships with international organizations like the International Finance Corporation. He also revealed plans to establish building materials manufacturing hubs across Nigeria’s six geopolitical zones, aiming to reduce reliance on imported materials, cut costs, and create jobs.

Dangiwa reaffirmed the government’s commitment to fostering a thriving real estate sector through strong policies, regulatory frameworks, and investment incentives, while collaborating with state governments and the Nigeria Governors’ Forum to streamline land access and improve urban planning.

Shanghai Reduces Mortgage Rate Floor to Revitalize Housing Sector

Housing TV Africa News Desk — Tue, 28 May 2024 06:56:23 +0000

Shanghai, China’s financial hub, has lowered downpayment ratios and the mortgage rate floor for first-time homebuyers, marking a significant step among the country’s largest cities to stimulate the struggling housing market.

The city, home to nearly 25 million residents, reduced downpayment ratios by 10 percentage points to a minimum of 20% for first-time buyers. For second-home buyers, the ratio was lowered from 40% to 30%, according to a Monday statement by the central bank’s Shanghai branch.

The floor for mortgage rates was also decreased to 3.5% in Shanghai, down from 3.85%. These new policies will take effect on Tuesday, allowing banks to set their rates based on individual customer conditions, the statement added.

This move by Shanghai follows the central government’s recent announcement of a comprehensive policy package aimed at bolstering the housing market. The measures include easing mortgage rules and encouraging local governments to purchase unsold homes.

As part of these initiatives, the central bank has pledged 300 billion yuan ($41.4 billion) in low-cost loans to help financial institutions lend to local state-owned enterprises, enabling them to buy unsold apartments and convert them into affordable housing.

In addition to Shanghai’s actions, more than ten provinces have announced reductions in downpayment and mortgage rate requirements. However, other major cities like Beijing, Guangzhou, and Shenzhen have yet to adjust their mortgage rules.

The post Shanghai Reduces Mortgage Rate Floor to Revitalize Housing Sector appeared first on Housing TV Africa.

Mortgage Rate - Housing TV Africa

Nigeria’s Housing Minister Unveils Rent-to-Own and Lower Mortgage Rate Plans

The Minister of Housing and Urban Development, Ahmed Dangiwa, has announced that the Nigerian government aims to reduce mortgage interest rates to 12% as part of its efforts to make homeownership more accessible to Nigerians.

Shanghai Reduces Mortgage Rate Floor to Revitalize Housing Sector

Shanghai, China’s financial hub, has lowered downpayment ratios and the mortgage rate floor for first-time homebuyers, marking a significant step among the country’s largest cities to stimulate the struggling housing market.