New reports by PAC Research have called for the adoption of incremental housing models, stronger housing finance systems and expanded public-private partnerships (PPPs) to address Nigeria’s widening housing deficit.

The publications, titled From Shortage to Opportunity: Unlocking the Billion-Dollar Housing Market and Lagos Housing Report: A Treasure Trove of Possibilities, argue that Nigeria’s housing challenges also present major investment opportunities valued in trillions of naira.

Housing Shortage Creates Investment Potential

According to the reports, Nigeria requires about 800,000 new homes annually to meet rising population growth and urban housing demand. This figure is projected to increase significantly, potentially tripling by 2030.

Despite the deficit, the research highlights a growing market opportunity for both local and international investors, driven by rapid urbanisation and increasing demand for affordable housing.

Low Mortgage Penetration Highlights Financing Gap

The reports also point to Nigeria’s low mortgage penetration, which currently stands at less than 1 percent of GDP.

This is significantly lower than countries such as the United States, where mortgage penetration is about 77 percent, and South Africa at 31 percent.

According to the publications, this gap underscores the need for deeper housing finance reforms to unlock sector growth.

FMBN Projects Rising Housing Demand

In the foreword to the reports, Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Osidi, warned that annual housing demand could rise to 2 million units by the end of the decade.

He described Nigeria’s housing sector as being at a critical turning point where urbanisation and population growth are creating both challenges and opportunities.

New Financing Models Recommended

The reports recommend several financing innovations to bridge the housing gap, including:

• Real Estate Investment Trusts (REITs)
• Diaspora mortgage schemes
• Federal Government housing initiatives
• Public-private partnerships (PPPs)
• Incremental housing development models

These mechanisms, according to PAC Research, are essential to expanding access to affordable housing and unlocking sector liquidity.

Lagos Remains Key Housing Market

The publications estimate that Lagos currently has about 1.49 million housing units, while demand stands at approximately 4.69 million units.

This creates an accessible market gap of roughly 2.81 million units, making Lagos one of Africa’s most active real estate markets.

The reports also note a shift in housing preferences, with more than 52 percent of residents favouring one- and two-bedroom apartments due to affordability and changing lifestyle patterns.

Strong Rental Returns in Prime Locations

PAC Research also highlighted strong rental yields in high-demand areas such as Lekki and Victoria Island.

According to the findings, three-bedroom apartments in Victoria Island can generate annual rents of up to N8 million, reflecting strong investor interest in prime Lagos real estate.

Experts Call for Immediate Action

Describing the report as a call to action, FMBN Managing Director Shehu Osidi said the time to invest in Nigeria’s housing sector is now.

He stressed that the benefits extend beyond financial returns to include inclusive economic growth and improved urban resilience.

Similarly, the Oniru of Iruland, Abdulwasiu Lawal, described the Lagos housing report as an important guide for real estate stakeholders and investors.

He noted that emerging growth corridors such as Ajah, Epe and Lekki are expected to drive the next phase of Lagos real estate expansion.

The post Nigeria Housing Deficit Presents Trillion-Naira Investment Opportunity — PAC Research appeared first on Housing TV Africa.

Nigeria currently requires about 800,000 new homes annually to keep pace with rapid population growth, with demand projected to rise sharply and potentially triple by 2030, according to fresh housing market research.

Reports released by PAC Research revealed that Nigeria’s housing deficit has now exceeded 28 million units, with Lagos State accounting for an estimated 3.4 million-unit shortfall.

The reports, titled “From Shortage to Opportunity: Unlocking the Billion-Dollar Housing Market” and “Lagos Housing Report: A Treasure Trove of Possibilities,” provide one of the most extensive assessments of Nigeria’s housing sector and emerging investment opportunities.

Despite the widening housing gap, researchers argued that the situation presents significant economic opportunities for investors, developers and policymakers, with the housing market valued at potentially trillions of naira.

The national report, which featured a foreword by the Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, noted that Nigeria currently requires around 800,000 housing units yearly to match population expansion and urbanisation trends.

It projected that housing demand could increase to approximately two million homes annually before the end of the decade.

The report also highlighted Nigeria’s weak mortgage sector, noting that mortgage penetration remains below one per cent of Gross Domestic Product (GDP), compared to 77 per cent in the United States and 31 per cent in South Africa.

“Nigeria stands at a critical juncture where rapid urbanisation and economic transformation converge to create unprecedented opportunities,” the report stated.

Researchers identified several innovative financing models capable of narrowing the housing gap, including Real Estate Investment Trusts (REITs), diaspora-backed mortgage products and the Federal Government’s Renewed Hope Housing Scheme.

A significant section of the study focused on Lagos, Nigeria’s economic centre, which reportedly attracts more than 475,000 new residents annually.

According to the findings, Lagos currently has an estimated housing stock of 1.49 million units against demand estimated at 4.69 million units, creating an accessible market gap of approximately 2.81 million units.

The report also observed changing housing preferences among residents, with more than 52 per cent reportedly favouring one-bedroom and two-bedroom apartments due to affordability concerns and lifestyle trends.

Researchers noted that demand for compact housing units continues to rise across major urban areas.

The study further identified strong rental returns in prime locations including Lekki and Victoria Island, noting that three-bedroom apartments in Victoria Island can attract annual rents of up to ₦18 million.

To address the housing shortage, PAC Research recommended broader adoption of incremental housing models, expansion of housing finance access, and stronger public-private partnerships to accelerate delivery.

Describing the report as a timely intervention, Osidi said it should serve as a wake-up call for stakeholders.

“This report is more than an analysis — it is a call to action. The time to invest in Nigeria’s housing market is now. The rewards extend beyond financial returns to include inclusive growth and urban resilience,” he said.

Also speaking, the Oniru of Iruland and former Lagos State Commissioner for Housing, Oba Abdulwasiu Lawal, described the Lagos-focused report as an important guide for real estate investors and stakeholders.

He noted that emerging corridors such as Lekki, Ajah and Epe are increasingly becoming strategic destinations for future housing investments.

The post Nigeria Needs 800,000 New Homes Yearly as Housing Deficit Surpasses 28 Million — Report appeared first on Housing TV Africa.