Nigeria Forecast to Outpace Major African Property Markets Through 2029
Nigeria’s real estate sector is projected to record the fastest annual growth among several major African property markets between 2025 and 2029, according to a new continental investment report.
The Real Estate Investment in Africa report forecasts that Nigeria’s property market will expand by approximately 6.9 per cent annually during the period.
This places the country ahead of Kenya, which is projected to grow by 5.1 per cent, Rwanda at 3.6 per cent, Ghana at 3.4 per cent and South Africa at 3.0 per cent.
The report estimates the value of Nigeria’s real estate market at about $2.6 trillion, making it the largest among the African countries examined. Egypt follows at approximately $1.6 trillion, while Ethiopia and South Africa are valued at $1.3 trillion and $1.2 trillion respectively.
Nigeria’s large and growing population, rapid urbanisation and continued expansion of cities such as Lagos and Abuja are among the major factors supporting demand for residential, commercial and industrial properties.
Across the continent, the real estate market is expected to grow by an average of 5.58 per cent annually through 2029. This is higher than the projected growth rates of 3.39 per cent in North America, 2.86 per cent in Europe and 2 per cent in Asia.
Despite the projected expansion, Africa represents only a small share of global property value. The report estimates the continent’s market at approximately $17.6 trillion, equivalent to about 2.7 per cent of the projected $650.4 trillion global real estate market in 2025.
Affordable housing, purpose-built student accommodation, build-to-rent developments, logistics facilities, warehouses, data centres, short-let apartments and green-building retrofits were identified as important investment opportunities.
Nigeria’s estimated gross rental yield of about 8 per cent also strengthens its appeal to investors. The figure is higher than the estimated returns in Kenya, Morocco, Egypt and Ghana but remains below those recorded in South Africa, Zimbabwe and Cameroon.
Demand for student housing is particularly strong. Accommodation developments around some university communities in Lagos reportedly recorded occupancy rates ranging from 88 to 96 per cent in 2026.
The expansion of Nigeria’s digital economy is also increasing demand for data centres and specialised industrial properties. The country’s operational data-centre capacity is projected to rise from approximately 86 megawatts to more than 218 megawatts by 2030.
However, the size and projected growth of the market do not automatically translate into affordable or investable properties.
High construction costs, expensive credit, weak mortgage access, infrastructure shortages, currency volatility and difficulties surrounding land titles continue to affect developers, buyers and investors.
Nigeria’s ability to realise the projected growth will therefore depend on improving land administration, expanding housing finance, investing in infrastructure and creating a more transparent regulatory environment.
