TRENDS IN THE LAGOS RESIDENTIAL REAL ESTATE MARKET

Residential Auctions Company

About Us

RAC is a real estate research firm that specializes in providing integrated research services for the local real estate market in Lagos

It was established in 2010 and incorporated as a company in 2011 under the Companies and Allied Matters Act of 1990

We regularly collect data and conduct surveys on the property market which we use to produce annual market reports and also provide advisory and consulting services to our clients

Our mandate as a company is to provide easy access to information on the local property market in Lagos and across other major cities of Nigeria

Housing Deficit in Nigeria

According to the World Bank it is estimated that Nigeria has a housing deficit of 17m housing units.

Reality Check

2006 2015 Growth Rate

Population 140,000,000 178,000,000 (Est) 27.14%

Households (%) 15% 25%

No of Households 21,000,000 44,500,000 111.90%

Homeowners (%) 10% 10%

No of Homeowners 2,100,000 4,500,000 111.90%

Housing Deficit 18,900,000 40,050,000

Annual population growth rate of 2.47%

Nigeria currently needs an estimated 1m new housing units annually over the next 20 years

Over the last 4 years, the FG has provided 61,000 housing units nationally. This represents an average of 15,250 new housing stock per year. Also plans to build 4m new units in the next 3 years. Far cry from what is required.

Estimated number of housing stock in Nigeria is 13.7m units only of which about 5% is owned through mortgage finance

RAC Lagos House Price Index

Annual House Price Growth

House Prices

Lagos Rents

Lagos Island Rents

Lagos Mainland Rents

Construction Starts

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2010 2011 2012 2013 2014 2015F

No of Units (LHS) % Growth (RHS)

Supply Stock

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

500

1,000

1,500

2,000

2,500

3,000

2010 2011 2012 2013 2014 2015F

No of Units (LHS) % Growth (RHS)

Confidential

RAC reserves the exclusive rights to all the contents and data presented in this document and re-distribution is not permitted without prior consent.