In 2019, the estimated population of Nigeria was placed at over 200.96 million. The United Nations projected that the overall population of Nigeria will reach about 398 million by the end of the year 2050. By 2100, if current figures or statistics continue at its upward trend, the population of Nigeria will be well over 746 million. There is no doubt that population growth leads to growth in housing demands.
Real estate is an ever growing market, and with the amount at which birth rate skyrockets population density chart, more and more people would need shelter. Today a landlord looking for a tenant can afford to be picky with his or her tenant even if the price of the landlord’s apartment is high. Also, a property can be sold at outrageous prices because of the high demand for housing.
However, looking at the value of property in the major heavily populated cities in Nigeria like Lagos, Abuja, Portharcourt, Kano etc and comparing them with the value of less populated cities like Nasarawa, Kebbi etc, the value of property in these populated cities would be higher than the value of similar property in a less populated regions even though one might have spent quite the same amount to build the same property in both locations.
This increase in population is complemented by vibrant economic status and it continues to encourage population growth. Lagos, for instance, is estimated to be the fastest growing city in Africa with a population increase of about 60,000 persons per year, this estimate is growing 10 times faster. 60% of these residents are tenants and have to pay rents as high as 50- 70% yet there is still a high level of the homeless migrant from rural areas of the country into Lagos.
The provision of houses fail to meet with the constant growth of the population resulting in an acute shortage of housing but there is a silver lining for real estate investors because when population increases houses become scarce, therefore, the few that are built become expensive.
This means that if a person buys a house today, in a few years from now as a result of population increase, the house value will definitely appreciate. For instance, an underdeveloped land selling for 5million at the early stages could sell for as much as 10million or more when development reaches such an area.
In conclusion, population increases development and causes expansion resulting in the increased value of a property. This means that population growth is directly proportional to the real estate market. And so goes the saying that the best time to invest in real estate is not tomorrow but yesterday. Make that wise decision.
