Interest Rate Hike
The Central Bank of Nigeria raised the interest rate from 11.5 per cent in April 2022 to 18.5 per cent in July of the same year to combat accelerating inflation in the country.
Housing Crisis Worsens
The housing crisis in Nigeria intensified with over 28 million people lacking access to decent and affordable housing, and the country facing a staggering 28 million housing gap.
Mortgage Market Challenges
The high-interest rates have significantly affected the mortgage market, leading to rising project costs, strained lender-borrower relationships, and limited affordability for potential homebuyers.
The recent actions by the Central Bank of Nigeria to address the country’s inflation have had far-reaching effects on the nation’s housing market. With interest rates climbing to 18.5 per cent, the Nigerian economy faces mounting challenges in the real estate sector, where the cost of borrowing has surged, causing a ripple effect on construction and housing prices.
The surge in interest rates has led to a significant rise in the price of cement, a crucial construction material, further exacerbating the housing crisis. According to reports, more than 28 million Nigerians struggle with inadequate housing, revealing a pressing need for a sustainable solution.
