Sometimes I like to give the Nigerian housing market a nickname "Nigeria's Un-real Estate." It is no longer a debatable fact that Nigeria's housing market is fast becoming a bubble, properties are overpriced especially in the major cities like Abuja. We may not have a financial housing system in place that may collapse like what happened in the US towards the end of the last decade, but that doesn't mean we are safe from the trouble of a properties market collapse.

If you add up all the prices of the real estate in Nigeria, do you think the cash equivalent of such a grand total exists? if it doesn't, there is no cause for alarm, we are still safe. But, what if not even a fraction of that exists in our liquid economy, and what if the economy begins to slack from it's around 7% growth rate? What if there is a cash shortage and people try to sell their properties for some liquid cash? Just a combination of 2 or more of these scenarios can collapse the prices of houses and make a lot of people lose a lot of money just like what happened in the Nigerian stock market around 5 years ago.

We may not see another stock market crash anytime soon, but we could see a crash in other financial institutions like housing sooner than we had hoped.

Do you think the housing prices in Nigeria will ever crash or am I just being a pessimist? Do you see the property prices in your area as over-priced? Who do you blame for all these?
What are your own views on the future of real estate investment in Nigeria?

The real estate market is still under-developed in Nigeria, thereby the opportunities for growth is very positive. We still have a huge housing deficit of over 3 or 5 million homes (according to some official/stat reports).

The high end properties may not crash but stagnate depending on several reasons amongst which are:
1. the outcome (fallout) of the 2015 elections.
2. the price of crude oil.
3. the inflow/outflow of foreign direct investments.

Low and medium scale properties will continue to experience a boom because they constitute the biggest effective demand/supply compared to high end properties.

Also, the federal ministry of finance and world bank are planning a $300 million (about N48 billion) investment (mortgage financing) in the housing sector to boost the real estate market.

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Yeah...

The law of demand and supply will always play its role in regulating price in the properties market over time, other things been equal.

But if the price continue on an increase trend (maybe) base on the increasing population or some other factors; my question is, how many will be able to afford them?

That's why am of the opinion that mechanism should be put in place that will afford the middle-class place in this "development"

**let's hope the financing/ mortgage really work**
However, there are a lot of inefficiency with the mortgage system...

Also, I try to juxtapose the income level of the citizens and the increasing rate of these properties especially in major cities...this has pose a lot of questions in my mind yet to answered...

...as to if there is a bubble waiting to burst or if the market is presently over-valued; I think the market is "still on" and developing but not really over-valued but "time will tell"

remember:

"The market can remain irrational longer than you can remain solvent." John Maynard keynes