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HOUSING NIGERIAN'S FIVE INCOME CLASSES

 

The word “affordable” is one of the most abused words in the African real estate market, one would expect for something to be inexpensive or at least have a reasonable price when tagged as affordable, but a complete reverse is usually the case. This is what has set the grounds for this topic, as we will be carefully looking at the concept of affordable housing in relation to Nigeria’s five income classes, Yes five, these five classes can later be categorized into 3 classes, they are;

  1. Low income class, with an annual income of #480k and below
  2. Lower middle income class, an annual income from #480k to #6m
  3. Upper middle income class, an annual income from #6m to #12m
  4. Upper income class, an annual income from #12m to #120m
  5. Elite income class, with an annual income from #120m and above

These 5 classes as you guessed it can further be categorized into 3;

  1.  Low income class, which comprises of a staggering 80 million of Nigeria’s 200 million citizens, that is 40% of the total population
  2.  Middle income class, which comprises of 118 million citizens, an interesting 59% of the total population, out of which only about 9% are classified under the middle income class.
  3.   Upper income class, which comprises of 2 million citizens, that 1% of the total population, out of this 2 million upper income class of citizen, only about 100k can be classified under the elite class, meaning the elite class of Nigeria’s citizens are only about 0.05% of the total population.

So coming back to the question, what do we consider affordable in a country like Nigeria? That would be something that is inexpensive and having a price that is reasonable to the average citizens of Nigeria, which is the lower middle income class. According to research done by Built-Advice Nigeria, housing is affordable to an individual when you do not have to spend more than a third of your annual income on it, so for the average Nigeria citizen, any housing property that is above #2m in annual rent or #30m on sale cannot and should not be tagged as affordable.

Looking at all these, it is very safe to say that although affordable housing is very much available, the Nigerian population do not in any way appreciate the effort put in to this by real estate companies. Also looking at this, we can also say that real estate companies are not doing enough, as about 90% of houses on sale in the Nigerian market are only affordable to 20 million citizens, which is just 10% of the current Nigeria population, this is not a thing to be proud of in the real estate sector.

In conclusion, Built-Advice Nigeria gives kudos to real estate companies that try to service the other 90% of the Nigerian population, while employing those we consider luxury real estate companies to put more effort into servicing the non-elite categories of citizens, as in case it has not become common knowledge, from our calculations, only about 10% of the entire Nigerian population earn above #500k monthly, this we say is a very serious cause for alarm economically.

If you are in need of help or want to make some inquiries, feel free to send a direct message or put a call through using the cell digits provided, and you will get direct access to one of our professional consultants.

Thanks for reading

Do have an awesome day.


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