Funds domiciled in the real estate sector in Nigeria could be what is needed to address the housing shortage in the country. Following a research by FSDH Merchant Bank, that there are limited real estate firms in the country,
it is believed that the three now listed on the Nigerian Stock Exchange (NSE) is enough to fix the housing problem in the country.
The research explained that REFs have not gained much popularity in terms of the numbers available and their size relative to the size of the economy. It explained that there were only three REFs listed on the NSE, which are Union Homes Real Estate Investment Trust, Skye Shelter Fund and UPDC Real Estate Investment Trust.The report observed that there was a significant shortage of affordable housing in the country estimated at about 20 millions.
“This means that Nigeria needs to build between close to 20 million housing units to ensure that Nigerians have this basic human need,” it added. In monetary terms, Nigeria might require between N170trillion and N200 trillion to bridge the housing gap if each unit costs N10million. It said: “Given the rising population in the country, the housing shortage keeps increasing.
The Sun, Friday 15, March.