Ashiru-Balogun: Co-living, micro-apartments creating new opportunities

In a bid to bridge the massive housing deficit in Nigeria, new types of housing such as co-living spaces and micro-apartments are creating opportunities for investors in the real estate market. Managing Director of Terra Developers, Kola Ashiru-Balogun, emphasized that the country needs to supply at least 650,000 new houses annually for the next 26 years to address the current 17 million housing deficit. The demand for smaller, more convenient living spaces is on the rise, especially among the young and vibrant population in urban areas like Lagos. The trend towards co-living spaces and micro-apartments is driven by the preferences of a growing demographic in Nigeria. With approximately 120 million Nigerians below 25 years of age, the focus is shifting towards compact living spaces within city centers for increased convenience and accessibility to infrastructure and amenities. This shift in housing demand has led to the emergence of innovative solutions catering to the evolving needs of the population. One of the key aspects highlighted by Ashiru-Balogun is the role of government authorities in shaping policies to accommodate these new housing models. He stressed the need for adjustments in physical planning rules that allow for denser developments and flexible requirements to align with the lifestyle choices of the target demographic. By reevaluating regulations, states like Lagos can support the growing demand for compact, urban living spaces and create an environment conducive to innovative housing solutions. From an investor standpoint, the appeal of co-living spaces and micro-apartments lies in their potential for higher returns per square meter compared to traditional real estate models. By providing tailored services and amenities within these developments, developers can attract investors and occupants seeking modern living arrangements. Institutions like Shelter Africa have shown interest in financing such projects to enable greater access to structured housing for the younger population. One of Terra Developers' flagship projects, Olivia City in Lekki, Lagos, exemplifies the shift towards co-living spaces and emphasizes communal amenities like co-working spaces, restaurants, and studios within the development. The project's success in offering compact, efficient living spaces underscores the growing demand for such housing solutions among investors and residents alike. Despite the economic challenges facing various sectors, including real estate, Ashiru-Balogun remains optimistic about the outlook for the industry. While acknowledging the limited access to housing for first-time buyers due to pricing constraints, he emphasized the importance of collaborating with Developmental Finance Institutions (DFIs) to lower mortgage rates and facilitate entry into the property market. With Nigeria's population projected to reach 400 million by 2050, the demand for housing, particularly in urban areas, is set to increase significantly, underscoring the need for innovative and adaptable housing solutions. In conclusion, the evolving real estate landscape in Nigeria presents both challenges and opportunities for developers, investors, and policymakers. By harnessing the potential of co-living spaces and micro-apartments, the housing sector can address the current deficit and meet the growing needs of the urban population. As the industry adapts to changing demographics and economic conditions, collaboration between public and private stakeholders will be vital in shaping a sustainable housing strategy for Nigeria's future.