03 Sep Are there Middle-Income Housing Schemes in Nigeria?
If you live in Lagos or any of the major cities in Nigeria, you cannot miss the screaming billboards, flyer-wielding agents, radio jingles and other forms of aggressive marketing tactics by Real Estate developers about why their offerings are better than others and why their houses are the best for you.
One very obvious card they all play to attract the middle and low-income class of the market is that they have flexible payment plans that suit your lifestyle. But wait a minute. Let’s do some analysis.
Within the Lekki-Epe corridor of Lagos for example, a 3 Bedroom apartment could range from between 15 to 35 million naira – depending on the quality of finishing, title, location etc. Because most middle-income professionals work around the Central Business Districts, their choice location on that axis is usually Ajah and environs.
While multiple reports put middle-income earners to people who earn just above N150,000 monthly, we will like to expand this for major cities like Lagos to people who earn between N500,000 and 1 million naira monthly.
If we have to go by this rough estimation, then we need to ask the question: can middle-income earners really afford what’s in the market today?
Most of the product offerings require an initial deposit of between two and three million naira, and instalment payment of the balance over 18 to 24 months.
With other obligations such as house rents, school fees, health, family and so on competing for attention, there are only a few middle-income professionals who – on one hand, have 3 million lying fallow in their bank account – and on the other hand, who can afford a N500,000 monthly instalment for 18 to 24 months.
These dynamics definitely raise the entry barrier to homeownership for most middle-income professionals.
While it is no fault of developers who sell at the current prices and can’t give any further less stringent payment plan, the truth is that the current structure looks affordable, but not exactly accessible for the mass middle income class.
Unfortunately, developers can’t do much than this because of the interesting economic environment and the weak housing finance sector of our economy. Developers also have obligations to their employees, board, banks, government and other stakeholders.
The Green Park Advantage
But what about a housing scheme that comes with a down payment as low as N500,000 and a monthly instalment of 100,000? Now that’s middle-income housing.
Green Park Homes is that scheme. A development of Alpha Mead Development Company and Ibile Holdings – the investment arm of Lagos State Government, Green Park Homes Offers a range of house types from Semi Detaches to Terrace, three-bedroom, two-bedroom and studio apartments.
The scheme offers you:
- Guaranteed 6% mortgage with the National Housing Funds
- Bigger rooms and spaces compared to any estate in its category
- Quality Construction certified to international standards (ISO 9001:2015).