The continued market activity in major African cities to deliver residential developments within the luxury and deluxe category has created a huge gap between the demand and supply for low-income earners, a report by Estate Intel has stated.
The report titled ‘Residential developers dominating Africa’s major cities’ indicated that the demand for affordable and inclusive housing schemes within the cities did not meet the required target set by the government and a few property developers.
According to the report, the unprecedented demand for vacation rentals and investment property shifted the focus away from affordable housing developments.
The cities sampled in the report are Accra, Lagos and Nairobi.
The report read, “The unprecedented demand for vacation rentals and investment property shifted the focus away from affordable housing developments. Since then, the city responded with new residential developments to focus on the luxury aspects of the market.
“A running theme across all three cities is property developers holding the highest share of each residential market with a major focus on luxury and deluxe. For instance, according to the data Estate Intel is tracking, property developers hold 66.2% of the total market share in Lagos; compared to government organisations and private individuals.”
The report stated that despite infrastructural development in these areas, continued market activity in the luxury and deluxe categories will alienate affordable and inclusive housing schemes for middle-class and low-class citizens.
“There is still a huge gap between the demand and supply for low-income earners, which so far, only the government and a few property developers are looking to bridge.
“While there is continued market activity in each city to deliver residential developments within the luxury and deluxe category, housing needs for middle-class citizens that are heavily driving the demand for affordable and inclusive housing schemes within the cities are not considered,” it stated.
SOURCE: THE PUNCH
