Private investors are stepping in to address the accommodation shortages in some tertiary institutions by investing in on-campus hotels.
One such company, Student Accommod8, specializes in purpose-built student accommodation and has invested in student hostels at various universities across the country.
The attractive returns of approximately 22 percent offered by these investments have caught the attention of other developers.
According to Godwin Asuelimen, head of core product at Propertypro.ng, investing in student hostels is a lucrative opportunity, particularly in areas with a high concentration of tertiary institutions.
This market is booming, with significant investments being made in off-campus accommodations, especially in cities like Lagos, Benin, Enugu, and Port-Harcourt.
The shortage of on-campus accommodation is a pressing issue in Nigerian universities, given the country’s large student population. The University of Lagos recently received a 484-bed hall of residence to alleviate its on-campus bed space crisis.
However, the challenge persists, as most universities struggle to provide sufficient bed spaces for all their students. Experts in the real estate industry see investment in on-campus accommodation as a worthwhile long-term opportunity.
Developers like Mordecai Ezeh and Taiye Fatimehin suggest building new hostels or renovating existing ones to meet the demand. They also emphasize the importance of flexible payment options to ensure smooth operation of the system.
Despite the potential for profit, funding remains a major obstacle for investors. Civil engineer Eugene Nweke highlights the need for accessible loans with low-interest rates to support these ventures.
Additionally, challenges such as high construction costs, lengthy government approval processes, and lack of funds can hinder the development of student hostels.
Mismanagement and corruption have been identified as contributing factors to the housing crisis in many tertiary institutions.
Students like Destiny Iyama express frustration over the inflated costs of hostels due to private ownership, which can exclude lower-income students from accessing affordable accommodation.
This article was updated 2 weeks ago