Nigeria’s real estate sector has surged to a remarkable ₦41.3 trillion market value, positioning it as one of the country’s most promising long-term investment frontiers.
Investors with patient capital and strategic vision are now tapping into this rapidly expanding market, driven by population growth, housing shortages and rising urbanisation.
Latest industry data show that real estate contributed 5.45% to Nigeria’s GDP in 2024. In the third quarter alone, the sector saw a 46.52% nominal growth, a performance comparable to global property trends, although slightly below the United States’ 51.3% year-on-year growth.
According to Dotun Bamigbola, Senior Partner at Bamigbola Consulting, the market presents “massive opportunities even at the continental level,” noting that Nigeria’s population, estimated at 230 million, and a housing deficit of 20–28 million units, provide an enormous investment runway.
At the continental scale, he added, Africa’s real estate potential is projected at US$17.64 trillion by 2025, with residential property valued at US$14.87 trillion—driven largely by rising middle-class demands and infrastructure expansion.
REITs: Nigeria Still Emerging, But Showing Promise
Despite significant potential, Nigeria’s Real Estate Investment Trust (REIT) market remains relatively small at about $600 million, according to the Knight Frank Africa Horizons 2025/26 Report. This places Nigeria behind South Africa, whose REITs command about $8.5 billion, but ahead of several African countries still developing their frameworks.
Bamigbola noted that Nigeria’s REIT returns currently average 7%, which is lower than South Africa’s 15% and Kenya’s 9%, reflecting operational gaps and structural challenges.
Yet, a few REITs—Union Homes REIT, SFS REIT and UPDC REIT—continue to demonstrate resilience. Together, they generated ₦2.16 billion in rental income in 2023.
UPDC REIT, one of the most diversified in the market, maintains more than 100 properties, including shopping centres, office towers, student hostels and residential developments across Lagos and Abuja. Its flagship assets include:
- Victoria Mall Plaza, Lagos
- Kingsway Building, Marina
- UAC House, Abuja
- Pan-Atlantic University Hostel, Epe
Industry analysts believe the combination of a large housing deficit, growing urbanisation, and an emerging structured investment market positions real estate as one of Nigeria’s most lucrative long-term sectors.
