FACTORS AFFECTING PRIVATE HOUSING DEVELOPMENT IN ABUJA, NIGERIA

Purpose: Housing demand in most part of the world, especially Africa surpasses housing supply. The population is trending in geometric progression compared with arithmetic progression in housing provision. It is on this note that this study examined the factors responsible for the large gap created between demand and supply of housing.Design/Methodology: The Both primary and secondary sources of data were utilized for the study. The study analysed 250 returned questionnaires administered to registered developers under Real Estate Developer association of Nigeria (REDAN). The information relating to interest rate on real estate financing in Nigeria was sourced from Federal Mortgage Bank of Nigeria (FMBN), Land cost and building cost per meter square were sourced directly from registered estate surveyors and quantity surveying firms respectively. The study utilized both descriptive and inferential method of analysis. Findings: The result revealed that inadequate finance and cost of building materials were major factors affecting private housing development. Furthermore, the result of revealed that building cost/m2, land cost/m2 and interest rate on real estate finance jointly influenced variation in private housing development by 85%.Originality/Value: The study assesses relationship between land cost (/msq), building cost (/msq) and interest on real estate finance.