What are the current real estate market trends in Nigeria?

Authored by the expert who managed and guided the team behind the Nigeria Property Pack

Everything you need to know before buying real estate is included in our Nigeria Property Pack

Who is the author of this content?

THEAFRICANVESTOR

A team specialized in real estate investing in African countries (Nigeria, Kenya, Ghana, South Africa, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Nigeria. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheAfricanVestor, we explore the Nigerian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Lagos, Abuja, and Port Harcourt. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the average property price trend over the past 12 months across major Nigerian cities?

Property prices in Nigeria's major cities have increased by 10-15% year-over-year as of mid-2025, with significant variations across different metropolitan areas.

Lagos leads the market with an average residential property price of ₦50 million, representing a 3.8% annual increase. Abuja follows with properties ranging from ₦35-100 million, showing a modest 0.4% growth. Port Harcourt experienced a slight decline of -0.2%, with average prices between ₦30-80 million.

Emerging cities like Ibadan, Enugu, and Uyo present more affordable entry points at ₦10-25 million, yet they're experiencing stronger growth rates of 5-10% annually. The luxury market segment in Lagos, particularly in Ikoyi, Lekki, and Victoria Island, continues to show robust performance with appreciation rates of 10-15%.

Nationally, the average price increase was approximately 1%, but when adjusted for inflation, this reflects a real decline of -4.8%. However, this national average masks the strong performance in key urban centers where demand remains high.

It's something we develop in our Nigeria property pack.

Which types of properties are gaining or losing value in the short, medium, and long term?

Tech-equipped, energy-efficient apartments in urban centers are gaining the most value, driven by demand from young professionals and remote workers seeking modern amenities.

In the short term, apartments and land in growth corridors show the fastest appreciation. Micro-apartments and co-living spaces are rising in popularity due to affordability and flexible rental options. Larger suburban homes and duplexes are increasingly sought after by families, especially in city outskirts and well-planned estates.

Land prices in urban and peri-urban areas, particularly in Lekki, Ibeju-Lekki, and Epe, have seen the highest appreciation with some locations doubling in price over the past year due to infrastructure projects and urban expansion. Commercial spaces face mixed performance with stable demand in business districts but pressure from high inflation and currency volatility.

Over the medium and long term, land banking in emerging areas and investment in tech-enabled residential properties offer the best prospects. The housing deficit and continued urbanization support sustained demand for residential properties, while commercial real estate will depend on economic stability and business growth.

What are the key regional differences between Lagos, Abuja, Port Harcourt, and other major cities?

City	Average Price (2025)	12-Month Change	Key Market Drivers
Lagos	₦50 million	+10-15%	Strongest growth, luxury and mid-market demand, Lekki/Ikoyi premium
Abuja	₦35-100 million	+8-10%	Political stability, expatriate demand, Gwarinpa/Jahi development
Port Harcourt	₦30-80 million	+6%	Oil sector driven, moderate growth, stable rental yields
Ibadan	₦10-25 million	+5-10%	Infrastructure improvements, affordable entry point
Enugu	₦10-25 million	+5-10%	Regional economic hub, strong rental demand
Uyo	₦10-25 million	+5-10%	Emerging market, high rental yields, urbanization

How is rental demand evolving across different regions and property types in the last 6 months?

Rental demand has surged significantly across Nigeria, with short-term rentals experiencing an 18% increase in 2024, driven by tourism, business travel, and urban migration.

Lagos' short-let market alone is valued at over ₦300 billion in 2025, with Abuja and Port Harcourt also experiencing substantial growth in this segment. The rising average family size, now 5 in urban areas, is boosting demand for larger apartments and duplexes across all major cities.

Secondary cities are seeing increased rental demand as residents seek more affordable accommodation outside the main metropolitan areas. Family apartments and tech-enabled units are particularly popular among young professionals and growing families.

Student housing in university cities like Ibadan and Enugu shows strong and consistent demand, while serviced apartments in business districts of Lagos and Abuja command premium rental rates due to corporate and expatriate demand.

What's the current average ROI for rental properties by type and location in Nigeria?

Rental yields vary significantly across cities and property types, with emerging cities offering the highest returns for investors seeking strong cash flow.

Lagos apartments, particularly short-let and serviced units, deliver 6-8% rental yields, with premium neighborhoods in Lekki and Ikoyi commanding the highest rates. Abuja's rental market provides steady returns of 5-7%, supported by consistent demand from government workers and expatriates.

Emerging cities like Ibadan and Enugu offer the most attractive rental yields at 7-10%, driven by lower entry costs and growing demand from students and young professionals. Port Harcourt maintains stable yields of 5-7%, primarily supported by the oil and gas sector.

Short-let and serviced apartments consistently outperform traditional long-term rentals across all markets, especially in prime locations where business travelers and tourists are willing to pay premium rates for convenience and modern amenities.

How much has the cost of land changed this year versus the past 3 years in urban and suburban areas?

Land prices have experienced dramatic appreciation, particularly in Lagos growth corridors where some areas have doubled in value over the past year alone.

In Lekki Phase 1, land prices reached ₦500,000-₦1.2 million per square meter in 2025. Ibeju-Lekki plots now cost ₦10-25 million, with certain premium locations showing 100% appreciation year-over-year due to major infrastructure projects like the Lekki Deep Sea Port and Dangote Refinery.

Suburban areas like Ajah have seen plots rise to ₦20-60 million, up sharply from previous years due to infrastructure improvements and urban sprawl. The construction of new roads, bridges, and commercial developments has significantly boosted land values in these corridors.

Over the past three years, land prices in key growth corridors have appreciated 20-50%, significantly outpacing inflation in many cases. Abuja's outskirts, including areas like Kuje and Lugbe, show similar patterns with substantial appreciation driven by urban expansion and improved accessibility.

What's the market forecast for the next 12-24 months?

Property prices are expected to continue rising in Lagos and Abuja with annual growth rates of 10-15%, while moderate growth is anticipated in emerging cities across Nigeria.

Nationally, the market forecast indicates a 0.2-0.5% nominal increase for 2025, though inflation-adjusted values may decline slightly due to macroeconomic pressures. Transaction volumes are expected to fall marginally, but demand remains robust due to the persistent housing deficit and ongoing urbanization.

Infrastructure development and government housing initiatives will continue supporting market expansion, particularly in designated growth corridors around Lagos and Abuja. The Renewed Hope Housing Scheme targeting 300,000 new homes by 2025 is expected to stimulate both supply and demand.

Risks include inflation, currency volatility, and rising construction costs which may temper growth rates. However, the fundamental drivers of population growth, urbanization, and housing deficit ensure continued upward pressure on property values in major urban centers.

How are macroeconomic indicators affecting real estate pricing and demand right now?

Construction costs have risen over 300% since 2019, creating significant pressure on property prices and developer margins across all market segments.

Currency volatility continues to increase investment risk and can erode real returns, particularly affecting diaspora and foreign investors who must navigate exchange rate fluctuations. The naira's instability makes pricing and long-term planning challenging for both buyers and sellers.

High interest rates pose ongoing challenges for affordability, though new single-digit mortgage rate initiatives are being introduced to boost homeownership. These policy changes may gradually improve accessibility for middle-income buyers over the coming months.

Inflation remains a critical factor affecting both construction costs and buyer purchasing power, with the real estate sector serving as both a hedge against inflation and a victim of its effects on input costs and financing.

It's something we develop in our Nigeria property pack.

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.

Are there government policies or regulations expected to impact buyers or investors in the near future?

The Renewed Hope Housing Scheme represents the most significant government initiative, targeting 300,000 new homes by 2025 and potentially increasing supply while supporting demand through affordable financing options.

Land reform efforts are underway to streamline land administration and titling processes, which should reduce acquisition bottlenecks and transaction costs for buyers and investors. These reforms aim to improve transparency and reduce the time required for property transactions.

PropTech adoption and blockchain implementation are improving transaction security and reducing fraud risks, making the market more attractive to both domestic and international investors. Digital platforms are enhancing transparency and efficiency in property searches and transactions.

New mortgage initiatives offering single-digit interest rates are being introduced to boost homeownership accessibility, though implementation and widespread availability remain to be seen. These policy changes could significantly impact demand dynamics if successfully deployed.

What areas or developments are emerging as new hotspots for buyers and investors?

1. **Lagos Growth Corridors**: Epe, Ibeju-Lekki, and Lekki Free Trade Zone benefit from massive infrastructure projects including the Dangote Refinery, Lekki Deep Sea Port, and planned Fourth Mainland Bridge.2. **Abuja Expansion Areas**: Gwarinpa, Jahi, Lugbe, and Guzape attract investors with new residential estates and improved infrastructure connectivity to the city center.3. **Secondary City Opportunities**: Ibadan, Enugu, and Uyo gain attention for affordability, infrastructure upgrades, and strong rental yields driven by urbanization and economic diversification.4. **University Towns**: Areas around major universities show consistent demand for student housing and young professional accommodation, providing stable rental income streams.5. **Industrial Corridor Developments**: Locations near new industrial projects and special economic zones offer long-term appreciation potential as employment centers develop.

If I'm looking to buy now, where should I invest depending on my budget and goal?

For those seeking a primary residence, consider duplexes or large apartments in secure estates within Lagos (Lekki, Ikoyi), Abuja (Gwarinpa, Asokoro), or affordable bungalows in emerging cities like Enugu and Uyo.

Rental income investors should focus on apartments or flats in high-demand areas of Lagos and Abuja, or target student and young professional housing in Ibadan, Enugu, and Uyo for higher yields. Short-let properties in business districts offer premium returns but require more active management.

Property flipping opportunities exist primarily through land banking in Epe, Ibeju-Lekki, and Abuja's outskirts including Kuje and Lugbe, which offer the best prospects for capital appreciation over 2-5 years. These areas benefit from planned infrastructure development and urban expansion.

Entry points vary significantly by strategy: land investments start from ₦1-5 million in emerging areas, mini-flats begin around ₦5-20 million, while premium properties require ₦20 million and above for quality locations in established areas.

It's something we develop in our Nigeria property pack.

What's the typical timeframe to resell a property profitably, and what property types give the best resale value today?

Well-located properties in Lagos and Abuja typically require 3-6 months for profitable resale, while properties in secondary cities may take up to 12 months depending on market conditions and property type.

Land in growth corridors, particularly Epe and Ibeju-Lekki, offers the highest resale potential due to ongoing infrastructure development and urban expansion. These areas have shown consistent appreciation and strong buyer interest from both individual and institutional investors.

Apartments in prime Lagos and Abuja districts maintain strong resale value, especially properties with modern amenities and good security. Family homes in emerging cities also show excellent resale prospects as urbanization continues and middle-class families seek affordable homeownership options.

Properties with unique features such as smart home technology, backup power systems, and security amenities command premium resale values. Location remains the most critical factor, with proximity to major roads, business districts, and planned infrastructure projects driving resale success.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. TheAfricanVestor - Real Estate Investment Nigeria
2. NWN - Nigeria Real Estate Market Forecast 2024-2030
3. TheAfricanVestor - Nigeria Price Forecasts
4. Vanguard Nigeria - Top 10 Trends Real Estate Market 2025
5. Land Property Nigeria - Land Prices Lekki Ajah Ikoyi 2025
6. LinkedIn - Emerging Hotspots Nigerian Real Estate
7. The Nation - Nigeria Most Expensive Cities 2025
8. TheAfricanVestor - Nigeria Real Estate Market
9. LinkedIn - Nigeria Real Estate Weekly Rental Demand
10. Octo5 - Nigeria Real Estate Market 2025 Growth Projections