Experts in Nigeria’s real estate and hospitality sectors have called on the Federal Government and private investors to address financing, infrastructure and policy challenges that continue to limit growth across both industries.
The experts said stronger investment in infrastructure, improved access to development finance and a more predictable regulatory environment are necessary to unlock the potential of Nigeria’s property and hospitality markets.
Financing remains a major challenge
Access to affordable and sustainable financing remains one of the biggest obstacles facing property developers.
High construction costs and expensive borrowing make it difficult for developers to fund projects, particularly large-scale residential, commercial and hospitality developments.
Experts said improving access to long-term capital would allow more developers to complete projects and expand their operations.
The issue is particularly important for real estate because property development typically requires substantial upfront investment before projects begin generating returns.
Infrastructure affects property investment
Infrastructure was also identified as a critical factor in determining the success of real estate and hospitality investments.
Roads, electricity, water supply, transportation networks and other public infrastructure can significantly influence the attractiveness and operating costs of a development.
Where infrastructure is inadequate, developers may have to absorb additional costs, while investors may become more cautious about committing capital.
For hospitality projects, reliable infrastructure is particularly important because hotels and other facilities depend heavily on consistent power, water, accessibility and connectivity.
Policy stability needed
The experts also called for greater consistency in government policies affecting investment.
A predictable regulatory environment can give investors greater confidence when committing capital to projects that may take several years to complete.
Frequent changes in regulations, approval processes and development requirements can increase uncertainty and raise project costs.
Creating clearer and more efficient processes could therefore help attract additional private-sector investment into real estate and hospitality.
Real estate and hospitality can support economic growth
The sectors have the potential to contribute significantly to economic activity through construction, employment, tourism and related businesses.
Real estate development creates demand across the construction value chain, while hospitality supports employment in areas ranging from accommodation and food services to transportation and entertainment.
Unlocking further investment could therefore generate benefits beyond the property market itself.
However, experts stressed that investment must be supported by the right economic and infrastructure conditions.
More capital alone will not solve the problem
While attracting investors is important, increasing the volume of investment without addressing structural challenges could limit the impact.
Developers still have to contend with high land and construction costs, infrastructure deficits, regulatory requirements and limited purchasing power among potential homeowners and tenants.
For Nigeria’s housing sector, the bigger challenge is therefore creating an environment where investment can translate into more housing supply at prices that households can realistically afford.
The call from industry experts ultimately points to the need for closer cooperation between government and the private sector.
Improved infrastructure, accessible financing and predictable policies could help unlock new projects while strengthening Nigeria’s real estate and hospitality industries.
