Experts in Nigeria’s housing and construction sector say the country’s real estate market has continued to grow steadily since 2024. They attribute the rise to several factors: a fast-growing population, rapid urban development, rising demand for both affordable and high-end homes, government-backed housing and infrastructure projects, and the increasing use of technology, known in the industry as PropTech.
Speaking to *Daily Sun*, one of the experts, Innocent Merckson Okoro, the Principal Partner, MI Okoro and Associates, said that in the third quarter of 2025 (Q3 2025), Nigeria’s real estate sector demonstrated continued resilience and growth, driven by high housing demand, significant infrastructure developments, and increased investor confidence, despite ongoing challenges with inflation and financing costs.
According to him, key performance and trends in Q3 2025 included robust growth that indicated the sector maintained its strong position in the Nigerian economy. “The National Bureau of Statistics (NBS) reported a 5.4 per cent growth rate in Q3 2024, and a similar upward trend was sustained in 2025, with the sector consistently outperforming the oil and gas industry in GDP contribution.
“Another aspect is the surging demand for housing, where Nigeria’s large and rapidly urbanizing population, projected to exceed 230 million in 2025, continues to fuel a massive housing deficit estimated at over 28 million units. This has led to high demand for both affordable housing in emerging areas (like Epe and Ibeju-Lekki) and luxury properties in prime locations (Ikoyi, Victoria Island, Eko Atlantic),” he said.
Another respondent, Mr. Akin Opatola, Chapter President, International Real Estate Federation (FIABCI), said that rising property values and rental yields caused property prices to continue to show resilience against economic fluctuations, with an upward trend expected throughout 2025. He noted that rental yields in prime areas remained attractive, ranging between 6 per cent and 12 per cent annually, driven by high occupancy rates of 98 per cent in some prime H1 2025 areas.
He stated that major government infrastructure projects, such as the Lagos-Calabar coastal highway and the 4th Mainland Bridge, significantly influenced property values and opened up new development areas in Q3 2025. Technology played a vital role in the market, with increased adoption of online platforms, virtual property viewings, and blockchain technology to improve transparency and efficiency in transactions. The market for short-let apartments and co-living spaces continued to expand, catering to young professionals, expatriates, and tourists, with strong demand and high profitability. Federal and state government initiatives, such as the “Renewed Hope Cities and Estates Programme,” aimed to address the housing deficit and attract both local and foreign investment,” he observed.
In her response, Mrs. Monica Efe Osaghae, the Managing Director of Efe Enterprises, said that although the sector showed signs of resilience, it is not devoid of some challenges that have remained undaunting throughout the year. She said rising inflation and currency fluctuations led to significant increases in construction costs of around 12 per cent annually, which developers often passed on to buyers, creating affordability challenges.
According to her, “Access to affordable credit remained a hurdle for many buyers, with high mortgage rates of 18-25 per cent, thereby pushing most people to rely on personal savings or developer payment plans, which are not always enough. Overall, Nigeria’s real estate market in Q3 2025 presented a dynamic landscape with substantial opportunities for investment, particularly in residential and short-let segments, provided investors navigate the persistent economic challenges,” she stated.
