The Nigerian real estate sector is set to see significant growth in the coming 3-5 years, with affordable housing and luxury real estate emerging as the primary drivers.
According to the BuyLetLive 2024 Nigeria Price Index Report, key players in the market—including agents, property managers, developers, investors, landlords, tenants, estate surveyors, valuers, and research analysts—identified these segments as having the most promising potential for growth.
Affordable housing stands out as the biggest opportunity, with 60% of respondents pointing to it as the key growth area.
This reflects the growing demand for affordable housing solutions in Nigeria, where the need for cost-effective housing continues to rise due to urbanization and a rapidly expanding population.
The report further noted that as a result of affordable housing standing out as the biggest opportunity, both private investors and the government are focusing their efforts on addressing this gap, seeing it as essential for long-term economic stability and growth in the real estate market.
Luxury real estate follows closely, with 21% of the market players highlighting it as another area poised for growth. The demand for high-end properties is increasing, especially in major cities like Lagos and Abuja, driven by a growing number of affluent individuals and investors seeking premium homes and exclusive developments.
In addition to these primary sectors, the report notes other opportunities for growth, albeit on a smaller scale. Tech-enabled real estate solutions, shared properties, and commercial spaces are seen as emerging areas, with 12%, 9%, and 8% of respondents indicating potential in these categories. Meanwhile, industrial/warehouse spaces (4%) and green buildings (3%) round out the remaining opportunities.
While projections were made for the next 3 to 5 years, the BuyLetLive 2024 Nigeria Price Index Report also sheds light on the broader market outlook for 2025.
In the first quarter of 2025, the Nigerian real estate market is expected to experience a cautious “wait-and-see” approach from investors, as they await clarity on the 2025 budget announcement and its subsequent execution. This period of anticipation reflects investor interest in understanding how fiscal policies will influence the macroeconomic landscape and impact real estate demand.
As the year progresses, the collaboration between the private sector and government will be essential in addressing persistent challenges such as infrastructure deficits, regulatory bottlenecks, and currency volatility. Innovative construction techniques and localized production of building materials could help reduce costs and enhance market stability, fostering sustainable growth.
With these strategic interventions, the Nigerian real estate market is poised for continued development in 2025 and beyond, balancing challenges with opportunities to deliver value across all segments.