The Rising Cost of Building a House in Nigeria
Despite the biting economic effects of the recession in Nigeria, the cost of building a house has continued to rise. Between October 2016 and April 2017, several building materials have become more expensive than they used to be. In October 2016, it cost N2,500 to buy the ¼ white plywood board whereas, in April 2017, the same plywood was sold for N4,200 per unit.
As expected, this holds grave consequences for developers, the government, Nigerians planning to rent or buy property as well as other stakeholders. Industry experts have bared their minds on this topic as seen below:
Nigeria Real Estate Hub
“Nigerians would continue to pay more for accommodation in major cities until the cost of building materials is subsidised. Many completed housing estates across the country have remained unoccupied because of the high rental and sale prices attached to them as against the meagre income of the average Nigerian worker. More so, it is worse now due to the economic recession. The increase in the prices of building materials has multiplier effects on housing development, many projects are not completed on time due to the cost of materials which have been on the increase. Besides timely completion, high prices of building materials form a crucial constraint to improving housing conditions in Nigeria.”
For more info: http://nigeriarealestatehub.com/implications-cost-building-materials.html/
The implication of this is that housing schemes initiated by the government are not affordable to the average Nigerian. As expected, this impacts negatively on the projection of the government to cut down the visible housing deficit that the country has endured for years.
The government has, over the years, launched initiatives to provide affordable housing to the teeming population and encouraging homeownership through site and services schemes but with the rising cost of building materials, this goal proves elusive.
What can be done to free the country from this real estate trap? Perhaps the government should establish policies that will be aimed at bringing down the cost of building materials.