Real estate agency decries high cost of housing

Leading Nigerian Real Estate Agency, Ramos Realty, at the weekend decried the country’s housing deficit which it noted stands at about 20million. It also blamed the high cost of housing on inflation which has impacted the cost of construction materials and land prices. It, however, noted that access to mortgages can help bridge the deficit. […]

Leading Nigerian Real Estate Agency, Ramos Realty, at the weekend decried the country’s housing deficit which it noted stands at about 20million.

It also blamed the high cost of housing on inflation which has impacted the cost of construction materials and land prices.

It, however, noted that access to mortgages can help bridge the deficit.

The company’s Commercial Manager, Joshua Odimma, in an interview with newsmen in Lagos, noted that many Nigerians are used to buying houses and other assets with huge financial implications out of their pocket, but rarely consider mortgages as an option to help finance their dream homes.

Odimma added that Nigerians are just getting accustomed to the cash loans culture in Nigeria.

He, however, stressed that more sensitisation around mortgages will help take off the huge strain of a single bulk payment and reduce the housing deficit.

He said, “Housing is capital intensive in Nigeria due to the high cost of construction resulting from inflation, surging land prices, and even the unavailability of lands.

 “The high capital requirement of housing has made long-term financing critical in driving affordability; particularly for lower and middle-income groups.”

“Houses can be affordable to many Nigerians if the government can help with a proper mortgage system in Nigeria”.

 He, however, advised mortgage operators to make the process of applying and approval less cumbersome to allow for full utilisation.

“Government and even banks need to sensitise the public more about the benefits and processes of mortgaging. The public and private sectors would need to intervene through the introduction of more specific policies and creative financing facilities to drive affordability,” he added.

He said the firm has partnered with stakeholders to provide home financing solutions to Nigerians home and abroad.