Low-cost Housing would be the major promoter of the real estate market in the North. The real estate potential of Northern Nigeria has been the subject of several discussions. The North of Nigeria has a larger landmass than the South yet features less in the most built-up cities in Nigeria. Many factors have also disadvantaged the North, but what is the real estate potential of Northern Nigeria? Every part of Nigeria is rich in its way. Earlier, the North was and still is notable for its farm produce. The Northern part of the country still accounts for a larger bulk of Nigeria’s agricultural products; the North’s expansive landmass can signal a real estate boom if careful investment in the sector can take place.
Several locations in the North of Nigeria are thriving. The most viable parts of the North include Kano, Abuja (FCT) and Kaduna State. Despite these thriving parts of the region, the North has experienced a series of insecurity, thereby diminishing the region’s investment appeal, but real estate investment is a sector that the region can look into.
The real estate potential of Northern Nigeria may seem positive, depending on how one looks at it and exploring low-cost housing. Contrary to other parts of the country, Land is cheaper in the North than in the South. This offers a lot of promises for real estate development in Northern Nigeria. Even if the focus may not be directed to the countryside in the North, major cities or state and local government capitals can offer much promise for real estate development.
Nigeria is massively populated. This huge population needs adequate housing. Housing deficiency is a menace in all parts of Nigeria but more of a concern in the Northern part. Although several individuals in the North live in traditional houses, these houses are fast becoming outdated in the reality of an ever-changing world. The traditional houses don’t offer much of the modern standard living requirements.
Analyzing the real estate potential of Northern Nigeria needs to examine the people’s worldview. The North has more people living in poverty compared to the South. Current trends of worsening hardship in Nigeria have not improved the situation. Understanding the profitability of the real estate sector in any place will take account of the condition of the inhabitant.
Unless there could be more affordable housing, the real estate potential of northern Nigeria doesn’t look quite promising. Real estate investors want a guarantee of investment return. The question first is, can there be low-cost housing? The North holds a greater percentage of the country’s poor population. One may ask, does the North still hold a positive real estate potential?
Low-cost housing will bridge the poverty gap; when we say low-cost housing, we are not proposing substandard housing. With low-cost housing, people can afford to rent or lease such housing. Some northern states have been going on several real estate developments to house the population. The government alone won’t be able to provide the complete housing needs of the people of the North. For this purpose, we hope more investors get into the low-cost housing business in Northern Nigeria.
We understand that business is not a charity organization, and every real estate investor wants to know what they stand to gain in investing in low-cost housing in Northern Nigeria. For this reason, we are exploring the real estate potential of Northern Nigeria in a bid to improve investors’ confidence in the region. Below are some reasons why investing in low cost housing in Northern Nigeria will turn out profitable.
The North has a decent population.
Given the large landmass, the North may not appear densely populated; however, the North is well populated. This creates a big market for low-cost real estate establishments. Population is crucial while analyzing the real estate potential of a place; after all, housing is built for people. The North’s population could be a huge attraction to any real estate investor.
Affordable Land will impact the Real Estate Potential of Northern Nigeria.
Real estate investors aiming for Northern Nigeria should know that providing low-cost housing and other amenities is important. Several factors make this possible, like affordable Land. Given ample Land, this could create an avenue for low-cost housing. Certainly, low-cost housing would turn lucrative investment in the North. Since Land is cheaper, this ought to impact the overall cost of real estate establishments. This could, in turn, contribute to low-cost housing.
Cheap Labour
Unemployment is high in Nigeria but almost higher in the Northern part. The bigger driver of a lucrative real estate sector in Northern Nigeria would be in focusing on providing cheap housing. This is possible given several factors, and cheap Labour is one of such factors.
Northerners are notable for doing several jobs across the country. Any real estate investor would find the availability of cheap Labour attractive. The energetic young population of the North is willing and ready to work with real estate establishments. The availability of cheap Labour will positively impact the real estate potential of Northern Nigeria.
Existing infrastructures and Government Support
The North of Nigeria has far more government presence and infrastructure than the South. This is a result of several years of leadership of the Federal government of Nigeria by individuals of Northern origin. The federal government’s presence has ensured that the North doesn’t lack vital infrastructures like access roads.
Aside from the fact that Abuja is the capital of Nigeria, other states of the North, like Kaduna, have a high presence of other government institutions. Infrastructures and institutions are very important to real estate development. Despite these positive factors regarding infrastructure and institutions, real estate development in the North should focus on the majority rather than the rich minority.
Real estate investors in Northern Nigeria need to prioritize low-cost housing. Also, the northern state government continues to roll out different mass housing schemes. Such initiatives indicate the urgent need for standard housing in the region.
The government’s effort at all levels needs to be supported by investors. The real estate potential of Northern Nigeria won’t be maximized if only the government is paying attention to the needs of the people. The North has a huge real estate market; investors need to tailor designs to suit the population rather than ignore the region entirely.
The potential for a real estate boom in the North of Nigeria exists, but investors are not very confident. The housing deficit should be a concern for everyone, and passionate real estate investors need to step in and fix the housing gap in the North. It’s not about affluent homes, just decent and habitable housing.
Food Availability and lower cost of living
Food is a very important factor to any living organism. Access to food is a factor in real estate development. Most organisms seek to live close to a source of food. The North still has an abundance of food and livestock. This may seem attractive to real estate developers. The cost of living in the North is relatively cheaper. However, this low cost of living has not translated to improved living standards.
The lack of real estate development has also contributed to the poor living standards in the North. Standard housing will include appropriate plumbing; even some estate construction could include water supply. These things will improve the standard of living in the North.
If the standard of living can be improved, it will become strategic given the low cost of living in the North. Both would greatly improve the real estate potential of Northern Nigeria. A low cost of living and a high standard of living is achievable.
Conclusion
The real estate potential of Northern Nigeria hangs in the balance. The people are already suffering a housing deficit, which ought to create a real estate market boom, but the reverse is the case. Several factors contribute to this dwindling real estate fortune in the North.
Real estate investors need to approach the North from a modest perspective. The North will appreciate any intentional real estate investment outside the main city or state capitals. Beyond the walls of most Northern state capitals, a real housing deficiency situation is emerging. You are encouraged to invest in the Northern real estate market today.
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