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What will happen in Nigeria’s real estate market? Will prices go up or down? Is Lagos still a hotspot for foreign investors? How is Nigeria’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who buy properties in Nigeria, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Property prices in Nigeria will dip slightly because of economic uncertainties
The real estate market in Nigeria is facing a slight dip in prices due to economic uncertainties.
One major issue is the high inflation rate, which has been squeezing the purchasing power of many Nigerians. In recent years, inflation has surged because of rising global fuel and food prices, pushing more people into poverty. This has naturally led to a decrease in demand for real estate, as fewer people can afford to buy properties.
Unemployment is another big factor. Although there was a slight improvement in 2024, the unemployment rate is expected to rise again in 2025. With fewer people having stable jobs, it's tough for them to secure mortgages or buy homes, which means fewer real estate transactions are happening.
The Nigerian Naira's depreciation is also impacting the market. A weaker currency makes imports more expensive and reduces consumer purchasing power. This situation makes foreign investments pricier, potentially scaring off foreign direct investment (FDI) in real estate. With less money flowing into the sector, property prices are likely to drop.
For those considering buying property in Nigeria, it's crucial to understand these dynamics. The combination of inflation, unemployment, and currency issues is creating a challenging environment. However, this might also mean opportunities for buyers looking for lower property prices.
Keep an eye on these economic indicators if you're thinking about investing in Nigerian real estate. The market is in flux, and understanding these factors can help you make informed decisions.
Sources: Nigeria Real Estate Market Forecast 2024-2030, Trading Economics, Chaman Law Firm
2) Nigeria's real estate market will change as more people move to cities due to urbanization
Urbanization is rapidly changing Nigeria's real estate market, with more people flocking to cities.
In 2023, Nigeria's urban population grew by 3.5121%, and this trend is set to continue. More people are moving to cities, which means increased demand for housing and infrastructure. This shift is not just about numbers; it's about people seeking better lives and opportunities.
Back in 1960, only 16% of Nigerians lived in urban areas, but by 2019, that number had jumped to 49%. This migration is largely driven by the search for jobs and improved living conditions. Women, in particular, are moving from rural areas to towns and then to larger cities, fueling urban growth.
Take Lagos, for example. The city is facing a housing shortage of over 3 million units. This deficit is a result of rapid population growth and the increasing desire for urban living. As more people move to cities, property values are rising, especially with the growing middle class eager to live in urban areas.
To support this urban influx, infrastructure projects are underway. Cities are investing in road construction and public transportation systems to accommodate the growing population. These developments are crucial for sustaining urban growth and improving the quality of life for city dwellers.
Sources: Trading Economics, UN Nigeria, BuyLetLive Blog, Propsult
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nigeria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Demand for luxury apartments in Victoria Island will rise as expats and wealthy individuals look for premium homes
The demand for luxury apartments in Victoria Island, Lagos, is on the rise as expatriates and high-net-worth individuals seek premium living spaces.
In recent years, property prices have surged, with land prices in Victoria Island jumping by 113% from 2021 to 2023. This upward trend is expected to persist, with luxury apartment prices likely to range from ₦1.5 million to ₦5 million per square meter in 2024.
Lagos is becoming a hotspot for expatriates, thanks to its growing business opportunities, which naturally fuels the demand for high-end living spaces. Nigeria is also seeing a rise in wealth, with the country having the third highest number of high-net-worth individuals in Africa. This wealth increase means more people are on the lookout for luxury living options.
The development of new luxury apartments is booming, with over 700 units under construction in prime areas like Victoria Island. These projects are seeing high occupancy rates, a clear sign of strong market demand. Surveys reveal that affluent individuals prefer living spaces with top-notch amenities, which are increasingly being offered in these luxury apartments.
Victoria Island is not just about luxury; it's about lifestyle. The area offers a vibrant mix of business and leisure, making it a preferred choice for those who can afford it. The blend of modern architecture and exclusive amenities is a major draw for potential buyers.
As the city continues to grow, so does the appeal of Victoria Island. The combination of strategic location and upscale living makes it a prime target for real estate investment. The demand for these premium spaces is not just a trend; it's a reflection of the evolving lifestyle aspirations in Lagos.
Sources: Victoria Island Real Estate Market Insights, Nigeria's Next Generation of HNIs, Luxury Apartments in Lagos
4) Lagos rents will keep increasing as it stays a top spot for job seekers
Lagos is a hotspot for job seekers, and this is shaking up the rental market.
With the city's population expected to soar past 20 million, the demand for housing is skyrocketing. This surge is fueled by people moving from rural areas and a high birth rate, making it tough to find a place to live.
Every day, around 6,000 new residents arrive in Lagos, putting even more strain on the housing situation. Many of these newcomers are drawn by the city's job opportunities and have the means to rent, which only adds to the housing crunch.
Lagos is not just a local hub; it's a magnet for multinational companies, driving up demand for luxury homes and office spaces. Infrastructure projects like the Lagos Rail Mass Transit are set to boost property values in connected areas, making them pricier and more sought after.
Historically, rent prices in Lagos have been on a steady rise, and recent figures show a notable increase in the cost of two-bedroom flats. This trend is expected to continue as the city remains a top destination for job seekers.
Sources: Internet Geography, Business Day, Nairametrics
5) Rents in Abuja will level out as new housing meets demand
In 2025, rents in Abuja are expected to stabilize as new housing developments meet demand.
Thanks to initiatives like the Renewed Hope Cities and Estates programme, 3,112 new housing units are being developed in Abuja. By the end of 2024, 1,000 of these units will be ready, offering more options for potential renters. This project, launched by President Bola Tinubu, is a significant step towards balancing the housing market.
The government has been actively promoting affordable housing, which is crucial for stabilizing the market. These efforts are part of a larger plan to ensure that Nigerians have access to decent living conditions. Real estate agencies have noticed a rise in housing supply, which is expected to help stabilize rental prices as construction projects continue to progress.
New residential areas are popping up in Abuja, with the Renewed Hope City project being a prime example. This development aims to address the gap between the growing population and available housing. As more units become available, the pressure on rental prices should ease, leading to a more balanced market.
Media reports have been buzzing about these new developments, highlighting the positive impact they could have on the rental market. With more housing options, renters can expect a more stable environment, making it an exciting time for those looking to move to Abuja.
Sources: Nairametrics, NWN, Nairametrics
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6) Rents in northern Nigeria will rise as security gets better and economic activities increase
The Nigerian government has been pouring resources into boosting security in the northern regions, especially in 2023 and 2024.
With these efforts, the area has become safer, leading to a drop in violence and terrorism. This newfound peace is encouraging businesses and residents to settle in, sparking economic growth. The northern states are now seeing a surge in economic activities, thanks to increased foreign and local investments and better infrastructure.
For example, early 2024 saw foreign investments in Nigeria hit a four-year high, a clear sign of growing investor confidence. Improved infrastructure, like roads and electricity, is making the region more appealing. This has led to a rise in employment rates, drawing more people to northern cities.
As more people move in, the demand for housing is climbing, pushing property prices up. This has triggered a boom in construction and real estate development, with new projects popping up to meet the demand. The region's transformation is evident in the bustling activity and the increasing number of new buildings.
With the economy on the upswing, the northern regions are becoming a hotspot for those looking to invest in property. The combination of improved security and economic growth is creating a vibrant environment for real estate. As the area continues to develop, it's expected that rents will rise alongside the growing demand.
Sources: Northcourt Real Estate, FEWS NET, NES Group
7) Port Harcourt's property market will struggle because of environmental issues and changes in the oil industry
Port Harcourt's real estate market is grappling with serious challenges due to environmental issues and oil industry fluctuations.
In the Niger Delta, where Port Harcourt sits, oil spills are a common occurrence, with 9,343 incidents reported over a decade. This is a stark contrast to the European Union, which saw only 10 spills in 40 years. These spills have wreaked havoc on the environment, costing the region around $758 million each year in damages.
Take the Oruma community, for instance. Since a major oil spill in 2005, their once vibrant forests have turned into barren wastelands. Farmers there find it nearly impossible to grow crops due to ongoing oil contamination. The destruction of mangrove forests, vital to the local ecosystem, is also alarming, with 5 to 10% of Nigeria's mangroves affected.
These environmental woes directly hit the real estate market. In Oruma, properties like farmland and fishponds have lost their value because of oil pollution. The global oil price swings also play a role, impacting local markets by driving up construction costs and operational expenses. When oil prices rise, building costs follow, making housing less affordable.
Sources: DW, Wikipedia, The Guardian
8) Real estate interest in Enugu will grow as it gains a reputation as an educational hub
Enugu is quickly becoming a real estate hotspot, thanks to its growing reputation as an educational center.
In recent years, especially around 2023 and 2024, Enugu has seen a significant rise in student enrollment. For example, the University of Nigeria Nsukka boasted over 43,000 students in 2024, highlighting the area's large student population. This influx of students is a key driver for the real estate market, as more housing is needed to accommodate them.
The Enugu State government is playing a crucial role by investing heavily in education. In 2025, they dedicated a substantial 33.2% of their budget to education, signaling their strong commitment to this sector. This funding is being channeled into building new Science, Technical, and Vocational schools and renovating existing ones, such as the historic Government Technical College. These efforts aim to not only increase the number of schools but also enhance the quality of education and infrastructure.
Media outlets are buzzing about Enugu's transformation into an educational hub, which is attracting more students and educators to the area. This attention naturally boosts the demand for housing, as more people move to Enugu for educational opportunities. Real estate trends indicate that property prices are expected to rise, driven by economic growth and urbanization, especially in cities like Enugu where educational institutions are expanding.
With the government's focus on education and the media spotlight, Enugu is poised to see a boost in real estate interest. The combination of increased student enrollment and government investment in education is creating a perfect storm for the real estate market. As more people flock to Enugu for its educational opportunities, the demand for housing will continue to grow.
Sources: Premium Times, Freedomsquare TV, Times Higher Education
We have made this infographic to give you a quick and clear snapshot of the property market in Nigeria. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Blockchain will make property transactions in Nigeria more transparent and efficient
In Nigeria, blockchain technology is transforming the real estate sector, especially since 2023.
The Nigerian government has approved a National Blockchain policy to tackle property fraud and inefficiencies. This policy aims to improve transparency and accountability in land registration, which has been a significant issue in the country.
In 2023, Nigeria, along with Kenya and South Africa, attracted a large share of blockchain funding in Africa. The Lagos State government is revamping its land registry using blockchain to ensure every transaction is tamper-proof and traceable, reducing fraud and increasing efficiency.
Partnerships between tech companies and real estate firms are also playing a crucial role. For instance, Distress Property Market Ltd and Wallstreet Exchange are working together to use blockchain for smoother transactions and better investment access, empowering individuals with innovative financial solutions.
Blockchain offers a secure and transparent platform, eliminating the need for third parties and making transactions faster, cheaper, and more secure. This is especially beneficial in Nigeria, where trust issues have been a major concern in the property market.
Sources: Nairametrics, News Central, AIBC World
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.