Building Our Tomorrow: Leveraging Technology and Innovation to Address the Housing Deficit Crisis in Nigeria and Africa
By Adamu Rabiu
The acute housing shortage due to several reasons including rapid urbanization, burgeoning population in Nigeria and across Africa, present formidable challenges that demand innovative solutions to confront it headlong.
Data from the Central Bank of Nigeria (CBN) and the Centre for Affordable Housing Finance in Africa suggest that the housing deficit in Nigeria may be around 20 million units, while in Africa it is about 56 million units. These numbers will increase as the population grows and urbanization continues.
While a glimpse into data from the World Bank and Statista highlights the urbanization rate in Nigeria at about 53.5% in 2022, meaning more than half of the population lives in urban areas and that of Africa is about 43.3%.
Other data from the CBN projects the cost of addressing the housing deficit in Nigeria at about N59.5 trillion, this is based on an average cost of N3.5 million per housing unit. The cost of addressing the housing deficit in Africa is not readily available, but it is much higher, given the growing population and the diversity of housing needs and preferences.
Amidst these challenges lies an opportunity to harness technological advancement and embrace innovation to revolutionize the way we approach real estate development.
The Urgent Need for Sustainable Housing:
As urban centres continue to expand, the demand for housing has reached unprecedented levels, exacerbating the already acute shortage of affordable homes. In this context, the imperative for sustainable housing solutions at scale cannot be overstated.
Green buildings, characterized by using sustainable materials, eco-friendly design principles, solar panels, rainwater harvesting, and biogas systems to provide renewable and affordable energy and water sources for their properties, offer myriad benefits to occupants and the environment.
Incorporating green building practices into real estate development, we will reduce carbon emissions thus contributing to the overall sustainability agenda, aligning with global efforts to combat climate change, lower utility costs, and create healthier living environments for residents and promote environmental stewardship.
Harnessing the Power of Technology and Innovation:
Artificial intelligence (AI) holds immense potential to streamline processes, enhance decision-making, and optimize resource allocation in the real estate sector. From predictive analytics for property valuation to smart home technologies that enhance comfort and security, AI-driven solutions can revolutionize the way we design, construct, and manage buildings.
Moreover, the quest for sustainable and affordable housing requires a multifaceted approach that leverages technology, innovation, and strategic partnerships. Innovative construction techniques, such as modular construction ,3D printing, recycled plastic, and bamboo can be used to create low-cost and eco-friendly housing units for low-income earners. Similarly, some African countries are already adopting prefabricated and modular housing systems that can be easily assembled and customized according to the needs and preferences of the customers.
These methods can significantly reduce building costs and accelerate the pace of construction, allowing for the rapid delivery of housing units to meet growing demand.
Benefits of Technology-Driven Solutions:
Embracing technology and innovation in the real estate sector will yield multifaceted benefits. Green buildings not only reduce environmental impact but also lower operational costs through energy savings and improved resource efficiency. AI-powered systems and platforms such as blockchain, big data etc, will enable smart contracts, secure, transparent, and efficient land registration. Additionally, property valuation, project management, and market information will enhance building management and maintenance. Furthermore, innovative mortgage finance or refinance options, coupled with digitized payment platforms and supportive government policies and incentives such as implementing green building standards and certifications that can encourage and reward the adoption of environmentally friendly technologies and innovations in the real estate sector is ideal. These will make homeownership more accessible to a broader segment of the population, thereby addressing the supply and affordability gap.
Recommendations and Policy Implications:
To fully realize the potential of technology and innovation in the real estate sector, policymakers, industry stakeholders, and government agencies must collaborate to create an enabling environment conducive to innovation and investment. This includes implementing supportive regulatory frameworks, incentivizing green building practices, and fostering public-private partnerships to drive innovation and scale adoption. Additionally, there is a need to invest in human capital development initiatives to equip professionals with the skills and knowledge needed to embrace emerging technologies and best practices. While regulatory frameworks should be updated to accommodate emerging technologies and facilitate their integration into mainstream real estate practices.
Towards a Sustainable Future:
In conclusion, the benefits of using technology and innovation in the real estate sector extend far beyond the realm of construction and development. By embracing green building practices, harnessing the power of artificial intelligence, and promoting sustainable and affordable housing solutions, we can promote inclusive growth, create vibrant, resilient communities with enhanced quality of life for a brighter tomorrow and generations to come.
