Nigeria’s property market has undergone a notable transformation over the past five years, driven largely by rising demand from Nigerians living abroad and a prolonged period of currency depreciation.
As the naira weakened against major foreign currencies, particularly the US dollar, real estate has increasingly become a preferred investment hedge for diaspora Nigerians seeking to preserve value and maintain tangible ties to home. This shift has altered not just demand volumes, but also the types of properties developers now bring to market.
Industry data and market observations show a steady increase in diaspora-driven purchases of land, apartments, and entire residential buildings, particularly in prime urban locations. Buyers operating with stronger foreign currencies now account for a growing share of high-value transactions in cities such as Lagos and Abuja.
According to Cherish Orji, a real estate sales and marketing executive, diaspora buyers are more deliberate in their preferences and investment decisions.
“They are drawn to high-security gated estates, short-let-friendly developments, and properties with modern amenities such as elevators, gyms, coworking spaces, stable power supply, and professional property management,” Orji noted in a market commentary accessed by BusinessDay.
She added that these expectations are increasingly shaping how developers conceptualise and design new projects, especially in the luxury and upper-mid segments of the market.
Beyond lifestyle considerations, currency dynamics and long-term value preservation remain key drivers of this demand. Orji explained that many Nigerians abroad now view real estate as a familiar and stable asset, particularly amid global economic uncertainty.
“For many, it is no longer just about owning property. It is about owning an asset that works whether they are physically in Nigeria or abroad,” she said.
Market analysts note that consistent diaspora demand has helped sustain activity in the sector despite broader economic pressures. Developments continue to move forward, supported by off-plan sales, bulk purchases, and rental income prospects tied to short-let and serviced apartment models.
However, this trend has also contributed to rising prices and increased market segmentation. Many of the smart homes and high-spec developments targeted at diaspora buyers are priced beyond the reach of average local earners, limiting access to politically exposed persons and high-net-worth individuals.
In Lagos, demand remains strongest in established premium locations such as Banana Island, Ikoyi, Victoria Island, and Lekki Phase 1.
Data from Edala Development, an online real estate research firm, shows that prices in Banana Island have risen sharply over the last five years. Four-bedroom homes increased from about ₦350 million in 2020 to ₦800 million in 2025, while three-bedroom units climbed to ₦600 million. Two-bedroom apartments now average ₦385 million.
Ikoyi recorded similar growth, with one-bedroom apartments rising from ₦80 million to ₦170 million, two-bedroom units from ₦102 million to ₦350 million, and four-bedroom homes reaching ₦750 million.
Victoria Island has also seen substantial appreciation, as four-bedroom homes increased from ₦225 million to ₦750 million, while two-bedroom apartments now sell for around ₦350 million.
In Lekki Phase 1, prices have more than tripled in some cases. Two-bedroom apartments rose from ₦70.5 million to ₦247.5 million, while three-bedroom homes increased from ₦102 million to over ₦315 million. Properties with verified Certificates of Occupancy and larger unit sizes command premium pricing, reflecting buyer confidence and strong investment appeal.
Analysts say understanding the structure and motivations of diaspora demand is becoming increasingly important for developers and investors seeking to align with market realities. While the segment continues to inject liquidity into the sector, it also raises questions around affordability, access, and the long-term balance of Nigeria’s housing market.
