How an affordable housing scheme is changing Lagos rental market story

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A report by Pison Housing Firm on ‘The State of Lagos Housing Market’ classifies Lagos, Nigeria’s industrial nerve centre, as an energetic rental market the place about 60 % of the state’s 20 million residents dwell in rented lodging.

Because of this demand for homes for lease within the state, which the report says has housing deficit estimated at 3million items, should be excessive. By easy economics, value (rents) on this market should even be excessive. The report provides that the residents spend about 50 % of their revenue on home rents.

Lagos is such that whether or not the story is about home costs or about rents, what’s on supply within the metropolis compares favourably with what obtains in the costliest housing markets globally. Lagos is the place, even in its slum areas, residents wrestle to pay for small-size household flats resembling 1 and 2-bedroom flats.

Within the intellectual areas of the state, rents for 1 and 2-bedroom flats vary from N2.5 million to N4 million every year. On the suburbs, these go for between N200,000 and N400,000 and the potential tenant is required to pay upfront, principally for 2 years.

Learn additionally: Parents, students’ online tuition experiences point to growing learning losses 

These causes clarify, partly, why the state authorities got here up with a housing scheme which isn’t solely inexpensive, but additionally handy and progressive because it steadily leads a subscriber ultimately to homeownership.

Generally known as Lease-to-Personal, the housing scheme, which is an off-shoot of the Lagos Residence Possession Mortgage Scheme (LagosHOMS),requires a subscriber to pay simply 5 % of the worth of any home he needs to rent-to-own as his fairness contribution and the stability unfold over 10 years.

This manner, steadily however steadily, the state authorities is altering the home-ownership story of the residents. The scheme, which was launched in 2016 with particular concentrate on first time house patrons, entered the housing market with 4,355 housing items it inherited from the mortgage scheme.

These homes got here from 12 housing estates together with Sir Michael Otedola Property, Odoragunsen, Epe, Odo Onasa, Agbowa, Igbogbo Housing Property, Ikorodu, Egan -Igando Housing property, Alimosho, Lateef Jakande Gardens, Igando additionally in Alimosho. Different estates for the scheme are CHOIS Metropolis, Agbowa, Olaitan Mustapha Housing Property, Ojokoro, Iponri Property, Surulere, Sangotedo Property, Eti-Osa and Ajara Property, Badagry.

The final one 12 months of the Governor Babajide Sanwo-Olu administration within the state has not solely strengthened the scheme, but additionally given it better impetus when it comes to undertaking supply.

“Within the final one 12 months, this administration has strengthened its coverage of delivering properties to Lagosians by a handy mortgage system tagged Lease-to-Personal,” Moruf Akinderu-Fatai, the state’s Commissioner for Housing, stated at a ministerial briefing to mark Governor Babajide Sanwo-Olu’s one 12 months in workplace.

He disclosed that moreover the 600 beneficiaries recorded for the state’s mortgage schemes, Lease-to-Personal scheme has additionally recorded 1,230 beneficiaries, giving over 9,000 Lagos residents which have benefitted from the 2 schemes.

It was an emotion-laden occasion in February this 12 months when Sanwo-Olu handed over keys to 492 households who had been beneficiaries of the scheme at Lateef Jakande Backyard Property in Igando as licensed by the State Mortgage Board.

One of many beneficiaries, a 56-year outdated widow, Fatimat Kosoko, couldn’t maintain again her emotion when her identify was introduced as a beneficiary of the scheme.

Kosoko, a mom of 4 and employees of the state Ministry of Schooling, stated the scheme had introduced reduction to her household, eight years after she had been struggling to supply first rate lodging for her kids, following her husband’s dying.

Akinderu-Fatai famous that this scheme has helped to cut back housing deficit within the state; promote mortgage tradition; preserve default price to the barest minimal, and be sure that the present schemes are in clear and liveable situation.

Aside from the Lease-to-Personal scheme, Lagos can also be delivering housing for different residents of the state a few of whom have already got their second or third ft on the property ladder. These embrace center and higher class members of the society.

The Sanwo-Olu administration within the final 12 months accomplished and delivered a few of these schemes. Amongst them had been the Courtland Luxurious Villas, Igbokushu in Lekki and Lekki Residences positioned at Freedom Means Junction, Lekki Phase1.

A Joint Enterprise undertaking between Lagos State Improvement and Property Company (LSDPC) and Messrs Le Grande Property Improvement Firm, the Luxurious Villas which sits on 28,321 sq. metres of land includes 120 items of 4-bedroom maisonettes and a boy’s quarter.

“Aside from the house items added to the present housing inventory thereby decreasing the housing deficit, the undertaking is exceptional because it boasts facilities resembling swimming pool, ample automobile park, group corridor, 24-hour safety, 5-aside soccer pitch, in addition to water and sewage remedy plant,” the commissioner stated.

On its half, Lekki Residences which sits on 16,450 sq. metres of land includes 124 items of 1,2&3-bedroom flats. Additionally it is a three way partnership between Step Improvement Restricted, Lagos State Ministry of Housing and LSDPC. The 124 items are configured into 36 items of 3-bedroom; 52 items of 2-bedroom, and 36 items of 1-bedroom flats.

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