Developers Pursue Prime Housing Financing in Lagos

Temitope Runsewe, the Managing Director of Sage Grey Group, announced at the company's 10th anniversary news conference on Thursday in Lagos that developers are actively seeking financing for housing projects in prime areas such as Ikoyi, Victoria Island, and Lekki. This trend is attributed to an increase in middle-class income.

Runsewe noted that the demand for housing is growing even as property and financing costs rise, leading to affordability pressures. He indicated that requests for financing are coming from high-growth, high-income locations, citing strong returns from companies like MTN as evidence of sustained spending power.

However, he expects that as housing costs continue to escalate, prime locations will become less affordable for middle-income earners, prompting development to shift towards the outskirts of Lagos and along major transport corridors. The concentration of financing in prime areas is occurring amidst rising land, construction, and financing costs, which are making residential development increasingly expensive.