A new industry report has portrayed Nigeria’s real estate landscape in 2025 as one marked by both promising prospects and significant hurdles. According to the latest edition of the Nigeria Real Estate Report, released by Ubosi Eleh & Co., a prominent firm in estate surveying and valuation, the sector stands at a critical intersection shaped by macroeconomic shifts and evolving market demands.
Now in its ninth edition, the annual report describes the previous year, 2024, as a period of “economic recalibration,” noting that while many households and businesses contended with financial strain, the real estate market remained active, albeit challenged.
The report attributes much of the sector’s turbulence to rising costs and constrained consumer spending, especially as inflation and currency fluctuations drove up the prices of construction materials—many of which are imported. The high cost of borrowing also posed a significant barrier to capital formation.
Despite these obstacles, analysts at Ubosi Eleh & Co. believe the fundamentals remain strong. The report emphasizes that Nigeria’s large population, ongoing urban expansion, and housing shortfall continue to create long-term opportunities, particularly in the residential segment, which remains a key pillar of the sector.
Looking ahead, the report forecasts cautious optimism for the remainder of 2025. Growth in warehousing, spurred by an expanding logistics industry and the rise of e-commerce, is identified as a bright spot. Meanwhile, residential developments are expected to evolve in response to demographic shifts, while commercial real estate adjusts to new work trends and consumer preferences.
In the hospitality sector, the report highlights robust activity, with increased interest in luxury hotels, budget-friendly options, and serviced apartments. It notes that both international hotel brands and domestic investors are capitalizing on growing demand from business travelers and local tourism.
Technology integration and diversified accommodation types are seen as pivotal in shaping the future of Nigeria’s hospitality market.
Overall, the report encourages investors to remain adaptive and strategic, concluding that while challenges persist, careful navigation and innovation could unlock sustainable returns in a rapidly changing environment.
