This study examined some of the challenges and opportunities in real estate financing in Nigeria. This was done through the examination of four (4) salient factors, which are the economic factors, legal framework, policy environment and private sector developers. The residential loan of which mortgage loan forms the bulk, accounts for 70% of the GDP of the developed economies; however, it is less than 1% to Nigerian GDP. The causative underlying factors for this gross comparative under performance has to be understood to influence policy changes that will create a more sustainable real estate environment in Nigeria.
The focus of the paper is on residential real estate. A number of studies have been done on real estate financing in Nigeria but none has looked at it from these four (4) focal points. This study contributes to the field by presenting some of the challenges and opportunities in real estate financing in Nigeria to facilitate the provision of a platform for possible solutions. The chosen methodology is desk based through a comprehensive review of literature. The findings show that real estate financing in Nigeria is plagued by challenges that can be mitigated. The study proffers recommendations for policy makers and managers.
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