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Real Estate

Real Estate Developers express fear over selection process of CBN’s N200 billion Housing Fund

The developers tasked the apex bank to ensure genuine developers with sincere intentions benefit from the preogramme.

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Real Estate in Lagos

Real Estates Developers have expressed fears regarding the transparency of the selection process of the Central Bank of Nigeria’s N200 billion Housing intervention programme targeted at low-income earners.

They tasked the apex bank to ensure genuine developers with sincere intentions benefit from it in the public’s interest.

This was disclosed by the Chairman, South West, Real Estate Developers Association of Nigeria (REDAN), Bamidele Onalaja, according to Punch.

READ: Nigeria invest $9.4 million in Shelter Afrique; emerge as the second largest shareholder 

He explained that he doubts the workability of the price tag of N2million on the housing units except in places such as Gombe, Jigawa and others but not in major cities across the nation.

Back story: Nairametrics reported when the CBN approved the sum of N200 billion as mortgage finance facility to the Family Homes Fund Limited (FHFL) and targeted at low-income earners.

READ: Lagos says defaulting allottees of housing schemes in Lekki, Ikeja, others to lose houses

According to a circular, which was issued by the CBN and seen by Nairametrics, this financing initiative is to be implemented in collaboration with the Family Homes Fund Limited as the lead developer, as it is introduced to support the Federal Government’s Economic Sustainability programme.

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READ: Real Estate: Still not out of the woods

This fund is to fast track the construction of 300,000 homes in the 36 states of the federation and the Federal Capital Territory and to create up to 1.5 million jobs in 5 years

Onalaja, who is also the Managing Director, RevolutionPlus, advised Family Homes Fund Ltd to ensure they give only to those who were qualified with a track record of providing affordable housing.

READ: Delivering mass housing as a path to Nigeria’s economic recovery

He said, “Land acquisition is a major issue but it is not impossible. In states such as Jigawa and Gombe, a one bed may be possible excluding land.”

On the criteria for qualification, Onalaja stated that a developer should have genuine land with title while the CBN would provide a consultant.

Explore the Nairametrics Research Website for Economic and Financial Data 

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He said the association was elated because the facility type was a term loan to enable FHF to finance the construction of social housing units for low-income earners for a three-year tenor from the date of disbursement.

According to a statement issued by the association on Sunday, the fund is to fast track the construction of 300,000 homes in the country, in addition to creating up to 1.5million jobs in five years.

READ: UAE firm partners DBillions to address housing shortages in Lagos

However, he lauded the initiative, adding that if sincerely applied, it would achieve the long dream of affordable housing by the public.

“In that regard, the programme will deliberately aim to revitalise local manufacture of construction materials. If the government is able to effectively handle their side of the bargain, then the whole programme will run through,” he added.

READ: Bill to regulate real estate scales through 2nd reading in Lagos Assembly

Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper.The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference.The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

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Real Estate

FG to unveil dedicated portal for sale of houses to Nigerians

The Federal Government has announced plans to launch a dedicated web portal for the sale of buildings to Nigerians in the next few weeks.

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Nigeria needs N1.5 trillion within the next 3 years to fix roads - Fashola

The Federal Government has announced plans to launch a dedicated web portal for the sale of buildings to Nigerians in the next few weeks.

The platform is expected to help contributors to the National Housing Fund (NHF) access mortgage loans on a first-come, first-serve basis.

This disclosure was made by the Minister of Works and Housing, Babatunde Raji Fashola while speaking at the ninth meeting of the National Council on Lands, Housing and Urban Development in Jos, Plateau State.

Fashola, who was represented by the Minister of State for Works and Housing, Abubakar Aliyu, pointed out that the ministry is currently at the completion stages of the first phase of the national housing programme in 34 states of the federation, which provided land for it.

READ: Thinking Of Getting A Mortgage In Nigeria? 10 Important Things You Must Know

He said, “We urge the state governments to alert their residents to this opportunity for interested persons to apply.”

Fashola commended the Federal Mortgage Bank of Nigeria (FMBN) for being at the forefront of the cooperative housing initiative at the federal level, adding that it has the advantage of allowing cooperative members to choose what they design and build to fit their budgets.

They can leverage their members to get group discount for the purchase of building materials as well as the engagement of contractors.

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Fashola disclosed that FMBN as the driver of the housing initiative has engaged 86 co-operatives in projects; approved N35, 784 billion cumulatively; disbursed N10.95 billion; and processed as at January, 57 co-operative housing development loans.

Fashola emphasized that what the Federal Government can do directly in housing is limited compared to what states can do, just as state governments are also limited, compared to what the private sector and individuals can do.

He said, “The majority of houses available for sale or rent belong to individuals and private companies compared to what states or Federal Government has available. Therefore, many of the tenants who owe rent, who face eviction or who seek to rent or buy property are dealing with private citizens or companies and less so with government agencies.’

My recommendation for improving access and affordability to housing in the Covid-19 era is for private companies and individuals to give back some of what they control to citizens in the way the Federal Government has given back to citizens some of what it controls.’’

He explained, “for example in cases where the rent of businesses or individuals are due for renewal, the private landlords can give back, by accepting monthly, quarterly or half-yearly rent instead of one year, two or three years rent in advance.”

Bottom line

Nigeria has been bedevilled by a housing crisis that has left Africa’s most populous nation ill-equipped to properly provide accommodation for its citizens and inhabitants.

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Some of the housing problems in the country include unresolved rent tenure arrangements, high cost of building materials, access to infrastructure, deficiency of housing finance arrangements, stringent loan conditions from mortgage banks, time to process legal documents and inadequate government housing policies.

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Real Estate

Real estate firms that offer affordable housing in Lagos

A major strategy they use to attract the middle and low-income class of the market is that they have flexible payment plans that suit every lifestyles.

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Lagos says defaulting allottees of housing schemes in Lekki, Ikeja, others to lose houses, real estate, Proposed NHF Law takes a twist, as top Nigerian experts differ on its impact, Richard Olodu, affordable homes 

It is almost impossible for every potential and existing homeowner to miss the screaming billboards, flyers, sales agents, and other aggressive marketing tools of real estate firms in Lagos.

They usually attract attention by listing how their offerings are better than others, and why their houses are the best for their prospective clients. A major strategy they use to attract the middle and low-income class of the market is their flexible payment plans that suit every lifestyle.

Their target locations are within the Lekki-Epe corridor, Ibeju-Lekki, Magodo, and Badagry, among others.

Let’s take a look at some of the firms and their offerings:

READ: How to earn over 20% returns in real estate in Nigeria


Green Park 

Green Park offers a down payment as low as N500,000 and a monthly instalment of N100,000.

The company, which is the investment arm of Lagos State Government, offers a range of house types from semi-detached, to terrace, three-bedroom, two-bedroom, and studio apartments.

It promises, “Guaranteed 6% mortgage with the National Housing Funds. Bigger rooms and spaces compared to any estate in its category.”

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Lekki Garden

Lekki Gardens has a lot of real estate structures such as luxurious apartments, duplexes, detached homes, and commercial centres. The company is keen on maintenance in order to keep up the standards of the estate.

The real estate firm sells a 4-Bedroom terrace duplex for N32 million (asking price) at its Lekki Gardens Estate Phase 3, by Lagos Business School.

Features:

  • Serviced estate
  • Coordinated security
  • Serene environment
  • Good neighbourhood

Houses in the estate are mostly 3-4 bedroom terraces and were initially sold for ₦13.5 million (regular terraces) and ₦14.5 million (corner piece).

READ: World’s richest real estate magnate gains $6.2 billion in 77 days


RevolutionPlus

Its Flourish Residences in Sangotedo are positioned strategically on Monastery Road, directly opposite Lagos State Jubilee Homes. The estate is also surrounded by many other gated estates and has the popular Shoprite mall right on the same road.

While its 3 bedroom luxury flat with maid’s quarters goes for an outright price N28 million, the 4 bedroom semi-detached terrace duplex goes for an outright N40 million.

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Also, the company’s Royal Haven Garden, Agbowa-Ikorodu, is located close to the approved 4th Mainland Bridge, linking Ikorodu to Lekki/Ajah axis.

Features:

  • 2 Bedroom Bungalow (Carcass)
    Outright Price: N9 million
  • 4 Bedroom Bungalow (Finished)
    Outright Price: 9 million
  • 3 Bedroom Bungalow (Carcass)
    Outright Price: 10.5 million
  • 3 Bedroom Bungalow (Finished)
    Outright Price: 10.5 million

Mixta Africa

Beechwood Park Phase 2 by Mixta Africa is located along the Lekki- Epe expressway and boasts of amenities such as on-site laundromats, recreational centres, easy access to financial institutions, reliable healthcare, good schools, and shopping malls.

The company’s plan 1 expects clients to make an outright payment with a 5% discount on price at N22 million.

In plan 2, which has an 18-month payment plan, clients are expected to make a 20% initial deposit and pay the balance over 18 months. The total cost is N31.69 million (for a 3 bedroom home).

READ: Insecurity: Lagos bans occupation of abandoned properties, buildings, issues ultimatum

Bottomline

The instalment payment plans offered by many of these real estate firms are making homeownership more affordable and accessible, particularly to individuals in the middle class.

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