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Thinking about buying a 3-bedroom apartment in Victoria Island, Lagos? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Lekki or Ikoyi where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Nigeria Property Pack.
Will property prices increase in Nigeria in 2025?
Yes, property prices in Nigeria are expected to rise in 2025, driven by a combination of economic growth and urbanization trends.
Backed by our fresh, in-depth market analysis, we’re confident that Nigeria remains a promising market for both domestic and international investors.
While there are challenges such as inflation and infrastructure deficits, the underlying factors supporting price growth are strong.
Rapid urbanization and a growing middle class continue to fuel demand for housing, particularly in major cities like Lagos and Abuja, making significant price declines unlikely.
Signals pointing to a property price increase in Nigeria
Here are some factors suggesting prices could increase:
Nigeria's economy is projected to grow steadily in 2025, driven by diversification efforts and increased foreign investment. Economic growth typically boosts consumer confidence and purchasing power, leading to higher demand for real estate.
Urbanization trends are accelerating, with more people moving to cities in search of better opportunities. This urban migration increases demand for housing in urban areas, pushing property prices upward.
The Nigerian government is expected to continue implementing policies that encourage real estate development, such as tax incentives and streamlined approval processes, which can stimulate market activity and drive up prices.
A growing middle class with increasing disposable income is likely to invest more in real estate, particularly in residential properties, contributing to price increases.
Infrastructure development projects, such as new roads and public transport systems, are set to improve connectivity in key areas, making them more attractive to buyers and investors, thus raising property values.
The demand for luxury and high-end properties is expected to remain strong, driven by affluent Nigerians and expatriates, which can elevate overall market prices.
The rise of technology and fintech solutions in Nigeria is making property transactions more accessible and efficient, encouraging more people to invest in real estate.
Signals pointing to a property price decrease in Nigeria
Here are some factors suggesting prices could fall:
High inflation rates could erode purchasing power, making it difficult for potential buyers to afford properties, which might dampen demand.
Persistent infrastructure challenges, such as inadequate power supply and poor road networks, could deter investment in certain areas, limiting price growth.
Political instability and security concerns in some regions may discourage investment and lead to localized declines in property prices.
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If property prices go up in Nigeria, how much would they increase by?
If real estate prices in Nigeria were to rise in 2025, the increase would likely be between 5% to 10% of their 2024 values.
Typically, real estate in emerging markets like Nigeria appreciates by approximately 5% to 10% annually over the long term. However, fluctuations can occur depending on factors such as region, economic conditions, and property type.
It means that, if you spot a lovely 2-bedroom apartment in Victoria Island for 50 million Naira today, don't be surprised if it's priced between 52.5 million and 55 million Naira this time next year.
To give you a better understanding, here is a table that shows 7 types of Nigerian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 5%, 7%, and 10%.
| Type of Property | Average Price in 2024 (₦) | Price in 2025 (5% increase) | Price in 2025 (7% increase) | Price in 2025 (10% increase) |
|---|---|---|---|---|
| Luxury Apartment (100 sqm) | ₦100,000,000 | ₦105,000,000 | ₦107,000,000 | ₦110,000,000 |
| Detached House (200 sqm) | ₦150,000,000 | ₦157,500,000 | ₦160,500,000 | ₦165,000,000 |
| Semi-Detached House (150 sqm) | ₦80,000,000 | ₦84,000,000 | ₦85,600,000 | ₦88,000,000 |
| Bungalow (120 sqm) | ₦60,000,000 | ₦63,000,000 | ₦64,200,000 | ₦66,000,000 |
| Terraced House (130 sqm) | ₦70,000,000 | ₦73,500,000 | ₦74,900,000 | ₦77,000,000 |
| Studio Apartment (50 sqm) | ₦30,000,000 | ₦31,500,000 | ₦32,100,000 | ₦33,000,000 |
| Investment Property (75 sqm) | ₦50,000,000 | ₦52,500,000 | ₦53,500,000 | ₦55,000,000 |
Everything you need to know is included in our Property Pack for Nigeria
If real estate prices go up in Nigeria, which areas are likely to see the biggest increases?
Today, people who want to move to Nigeria's urban centers desire the blend of cultural heritage and modern amenities, which Ikoyi in Lagos delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Yaba has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Nigerian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Ikoyi, Lagos | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Victoria Island, Lagos | High | Expected rise due to limited housing stock, upcoming renovations to commercial spaces, and growing demand for prime properties in central Lagos. |
| Lekki, Lagos | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Abuja Central Business District | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Banana Island, Lagos | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Yaba, Lagos | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Maitama, Abuja | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Gwarinpa, Abuja | Medium-High | Its proximity to central Abuja, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Asokoro, Abuja | High | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Nigeria?
In 2025, Nigerian real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in urban centers like Lagos and Abuja.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near major cities like Lagos, Abuja, and Port Harcourt are seeing increased interest. Proximity to green spaces, schools, and improved infrastructure is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In densely populated cities like Lagos, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Nigeria's growing commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with green goals, leading to price appreciation in this category, particularly in eco-conscious developments.
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