Africa: Aimart Realtors set to become a one-stop shop for housing deficit in Nigeria

Aimart

To address the ever increasing demand for affordable housing in the country which has been in acute supply due to skyrocketing population growth, Aimart realtors, a subsidiary of Aimart International Nigeria Limited, is to build decent and affordable homes across the Nigeria’s geographical expanse.

The company which has been in real estate industry for over fifteen years, said its vision is to to be a one-stop solution in global real estate business in the country.

Speaking at a press conference held on Friday in Ikeja, Lagos, Business Development Manager, Aimart Realtors, Mr Eyeto Samson said one of the objectives of the company is to provide real estate mortgage solutions that stands the test of time in Nigeria.

According to presentation by Mr Eyeto, Nigeria requires about 1,200, 000 housing units annually adding that 100,000 housing units is being built annually in the country.

He stated that Nigeria’s housing deficit will have increased from 17 million to 20 million houses by 2020.

The Presentation by Aimart reads:

INTRODUCTION
Aimart Realtors is an offshoot (a subsidiary) of Aimart International Nigeria Limited, a 100% Nigerian company incorporated in February 2004. We are residential and commercial Real Estate broker, Property Manager and Estate Developer with experience in providing excellent housing/shelter solutions to a wide spectrum of clientele or prospective house owners.

WHY CHOOSE US?
We offer a wide variety of property options to individual, groups or corporate organizations with flexible payment plans to enable everyone become home owners and investors.

OUR VISION
Our vision is to be a one-stop solution in global real estate business.

OUR OBJECTIVES
• To build decent and affordable homes across the Nigeria’s geographical expanse
• To ensure that all our housing units meet basic requirements for global best practice.
• To provide real estate mortgage solutions that stands the test of time.
• To ensure that all our stakeholders enjoy rewards for their investments.
• To deliver shelter within approved specifications and just in time – JIT.
• To manage our Real Estate Investment portfolio for value optimization.

HOUSING IN NIGERIA
Housing is a crucial basic need of every human being just as food and clothing and it is very fundamental to the welfare, survival and health of man. It serves as one of the best indicators of a person’s standards of living and his place in the society.

Housing involves access to land, shelter and the necessary amenities to make the shelter functional, convenient, aesthetically pleasing, safe and hygienic. Living conditions have a direct impact on the security and health of individuals.

In Nigeria, housing has not ranked high on the scale of priorities for social spending and this has been clearly reflected in the minimal efforts put into providing low-cost housing both in rural and urban areas especially for the latter. The creation of the Federal Mortgage Bank in 1977 did not make much impact until recent policies were introduced by the current administration.

There are key issues with housing in Nigeria and these include;
. Poor Rural Development
. Poor quality of rural housing. This spreads across location, quality level and value of property.
. Rural housing suffers deficiencies in areas of social services like electricity, water supply and transport facilities.

High Urban Migration
• High rate of urbanization, ever-increasing population of urban dwellers.
• Lagos, Nigeria’s commercial capital with an estimated 20.19 million people.
• Growth rate put at 3.2%/annum.
• 3000 persons moving into the state daily.

Others are
• Lack of effective planning.
• Uncontrolled private sector participation.
• Weak institutional frameworks.
• Poor research and development in the housing sector.
• Sometimes, other issues like inflation, income policy and socio-economic trends also mitigate against growth in the sector.

Federal Government Drive
• National Housing Policy was launched in 1991.
• NHF was established in 1992 to nurture and maintain stable affordable housing financing overseen by the Federal Mortgage Bank.
• The current administration has launched the Economic Recovery and Growth Plan (ERGP) to stimulate the economy through agriculture, housing construction, food security, renewable energy, infrastructure, manufacturing and the digital economy to create jobs .
• Establishment of the Economic Stability Committee (ESC) led by the Vice President in response to COVID-19 effect.
• A massive housing programme with a timeline of 12 months and an estimated cost of ₦317,292,377,973.48. This strategy is expected to create 1.8 million jobs.
• Coordinated by the Federal Ministry of Works and Housing,
• by Federal Mortgage Bank of Nigeria and the Federal Housing Authority are the government bodies to co-ordinate the delivery of this strategy.
• This is aimed at delivering mass housing as a path to Nigeria’s economic recovery.
• These policies and actions give support towards real estate development and encourages through other policies, active private sector involvement.

Lagos State Government Policies and Strategies:
According to a Lagos Household Survey (2011),
• About 72% of residents in the state are tenants
• Paying rent as high as 50% their monthly income.
There have been massive strides through administrations from as far back as Gov. Lateef Jakande who built the low-cost housing units across the state.
• Establishment of Lagos Building Investment Company (LBIC) in 1980, to provide mortgage financing to low-cost housing allottees.
• Directly constructing and delivering through public/private partnerships that gave birth to the Lagos Cooperative Home Ownership Incentive Scheme (Lagos- CHOIS) in a move to provide affordable housing for its population.
• Lagos Homes Ownership Mortgage Scheme (Lagos HOMS) to encourage home ownership amongst First Time Buyers (FTB) launched by Gov Babatunde Raji Fashola

Gov. Babajide Sanwo-Olu’s administration has taken the fight a notch higher and more aggressively by taking some steps which are:
• Completing 15 homes schemes with over 4000 home units from previous administrations.
• Activating the public private partnerships with about 1567 homes completed already.
• HOME4MORE scheme targeted at young professionals
• Rent-To-Own scheme which is driven by the Lagos Mortgage Board to encourage home-ownership through convenient mortgage payment.
• Full support for competent investors to have access to low cost finance through the PENSION CONTRIBUTION FUNDS for the development of low-cost housing.
• Government’s support for public private partnership.
• Encouraging participation from investors and housing sector experts
• Allowing access to cheaper financing
These policy moves from both the state and federal governments have helped the sector to experience its first positive growth since 2015 despite a 5-year low in banking credit to the sector as shown below.

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