Rent-To-Own Is The Answer To Nigeria Housing Challenge

The executive Director of NatanelFlorens, Yinka Daramola, in an interview with Punchng correspondent says the government and the private sector could explore the rent-to-own initiative as an answer to the housing challenge in the country.

What is your assessment of the real estate sector?

The real estate sector in Nigeria is clearly underdeveloped. There’s still a lot to be done in a market where we have a deficit of 17 million housing units, and also a market where out of the existing 13.6 million housing units, 11.5 million are on rental, representing about 85 per cent. It has been said that we will need to build at least one million housing units per annum to bridge that gap considerably. A World Bank study estimates the cost of building Nigeria’s 17 million housing deficit at about N59tn. This figure is huge and obviously can’t be funded alone by the government. That is why the private sector must play a key role. There must be a robust and synergised approach to housing in Nigeria, because something as basic as an increasing population could erode whatever gains one makes in trying to bridge the gap.

What role do you think the government can play in the rent-to-own initiative?

In the case of the government, we strongly believe that this is about the only answer to the housing challenge we find ourselves in. Renting to own is a convenient, hassle-free option to owning your own property. Government’s intention as always is to provide shelter for its citizenry and every government wants to do this without imposing burdens on its citizens.

Click HERE to read full interview