The continued market activity in major African cities to deliver residential developments within the luxury and deluxe categories has created a huge gap between demand and supply for low‑income earners, according to a report by Estate Intel. Titled “Residential developers dominating Africa’s major cities,” the report indicates that the demand for affordable and inclusive housing schemes in these urban areas has not met the targets set by the government and a few property developers.
The unprecedented demand for vacation rentals and investment property has shifted focus away from affordable housing developments. As a result, cities such as Accra, Lagos and Nairobi have responded with new residential projects that prioritize luxury aspects of the market. A running theme across all three cities is that property developers hold the highest share of each residential market, with a major focus on luxury and deluxe offerings. For instance, Estate Intel’s data show that developers control 66.2 % of the total market share in Lagos, compared with government organisations and private individuals.
Despite infrastructural development in these areas, the sustained emphasis on luxury and deluxe categories is alienating affordable and inclusive housing schemes for middle‑class and low‑class citizens. The report notes a persistent gap between demand and supply for low‑income earners, which so far only the government and a few property developers are attempting to bridge. While market activity continues to deliver luxury residential developments, the housing needs of middle‑class citizens—who are driving demand for affordable and inclusive schemes—remain largely unaddressed.
Comments are closed for this story.