Nigeria Leads Africa in Homeless Population With 4.5 Million People

Nigeria has been ranked as the African country with the highest estimated homeless population, with about 4.5 million people classified as homeless in 2025, according to data from the World Population Review cited by Daily Trust.

The figure places Nigeria ahead of other African countries facing significant homelessness challenges, including Uganda and Sudan. Uganda is estimated to have about four million homeless people, while Sudan has approximately three million.

The figures highlight the scale of Nigeria’s housing challenges as rapid urbanisation, rising rents and population movement continue to place pressure on available accommodation.

Major cities, including Lagos, Abuja and Kano, are among the urban centres affected by the shortage of affordable housing, with growing numbers of people struggling to secure accommodation within their means.

The situation also raises concerns about the conditions under which people without stable shelter are forced to live.

Children are particularly vulnerable, with homelessness and the lack of stable accommodation exposing some to street life and hazardous forms of work. UNICEF has highlighted the risks faced by vulnerable children who lack adequate shelter and protection.

Nigeria’s position in the ranking comes against the background of a broader housing crisis across Africa. Rapid population growth and urbanisation have increased demand for housing, while the supply of affordable and adequate accommodation has struggled to keep pace.

The pressure is particularly pronounced in major cities, where high rents and limited access to affordable homes have made housing increasingly difficult for low-income households.

The data also comes amid continuing concerns about Nigeria’s housing deficit and the cost of providing new homes.

The World Population Review’s homelessness figures have varied by data year and methodology. Its current country table, for example, lists Nigeria’s larger 24.4 million estimate against a 2020 data year, underscoring the importance of considering the underlying year and definition when comparing homelessness figures internationally.

A separate United Nations report has also cited an estimate of more than 24.4 million homeless people in Nigeria, while noting that Africa faces a wider housing crisis driven by rapid urbanisation and the growth of informal settlements.

The housing situation is further complicated by the cost of construction, land acquisition, infrastructure and property registration, all of which can affect the pace at which new housing is supplied.

Addressing homelessness therefore requires not only increasing the number of homes available but also ensuring that new housing is affordable and accessible to households that need it most.

With Nigeria’s population continuing to grow and urban centres attracting people in search of jobs and better opportunities, the demand for affordable housing is expected to remain a major challenge for policymakers, developers and communities.

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Property Brokers Face Scrutiny as Rising Markups Push House Prices Higher

Nigeria’s real estate market continues to record soaring property prices, with activities by brokers in short-let apartments, property flipping and speculative investments adding pressure to an already strained market and further weakening housing affordability.

However, experts have differing views on how much influence brokers have over rising prices. While some acknowledge that brokers play a role in pushing prices higher, others point to increasing costs of land, cement, steel, labour, diesel, imported materials, financing, infrastructure and statutory charges as the major factors behind the increases.

For decades, traditional estate agents in Nigeria earned commissions by connecting willing buyers with sellers. But a new category of property brokers is increasingly emerging across Lagos and other major cities, becoming more involved in the property pricing process.

Rather than waiting for property owners to give them houses or plots to market, these brokers search for properties they believe are undervalued, negotiate directly with owners, secure agreements, add their own margins and then look for buyers.

Some acquire properties outright and resell them, while others secure control of properties and sell their interests before the transactions are completed.

Some brokers specialise in distressed properties, while others focus on land in emerging locations, off-plan apartments or houses that can be renovated and repositioned for a higher value.

The business model is straightforward: acquire or control a property at one price and sell or exit at a higher price.

The practice is attracting greater attention as Nigeria’s property market deals with high land prices, rising construction costs, limited housing supply and increasing rents. This has raised questions among property professionals and consumers about whether brokers are simply responding to rising prices or adding another layer of inflation to the market.

The growing interest in this model is partly driven by the returns available from property appreciation. Under the traditional agency model, an estate agent could earn a percentage of a N100 million transaction as commission.

Under the newer brokerage model, a broker who acquires the same property for N85 million and resells it for N100 million could potentially make N15 million before accounting for transaction and holding costs.

This means the incentive is no longer limited to completing transactions. Brokers also have an incentive to identify properties that can be acquired cheaply, controlled and resold at a higher price.

The distinction is becoming more significant in Lagos, where property values have increased sharply in several locations.

The 2026 Lagos Real Estate Industry Report by Agusto & Company estimated that land prices within five kilometres of the Lekki-Epe corridor increased by between 25 and 40 per cent from the first quarter of 2025 to the first quarter of 2026.

In Ibeju-Lekki, land prices reportedly rose from about N15 million per plot in 2024 to as much as N35 million in 2026.

Some locations have recorded even more dramatic increases.

Data from Lagos’ coastal property market showed that land values in the Bluewater-Okunde area increased from approximately N329,000 per square metre in 2021 to between N2.5 million and N2.8 million in 2026. That represents an increase of between 660 and 751 per cent, with the growth linked to major infrastructure and investment projects around the coastline.

Such appreciation can attract speculators, while each transaction may subsequently become a reference point for the next asking price.

For example, a homeowner may be willing to sell a property for N100 million, while an intermediary negotiates the price down to N90 million and subsequently resells it for N105 million or N110 million.

The next buyer may then use the higher resale figure as an indication of the property’s market value.

This can create a chain of mark-ups even when there has been no improvement or development on the property.

The situation is further complicated by limited reliable data on actual property transaction prices. Nigeria does not have a centralised mandatory registry for completed property transactions, while market reports often make a distinction between asking prices and the prices at which properties are actually sold.

Short-lets add another layer

Short-let apartments have introduced another dimension to the pressure on property prices, particularly in Lagos.

A conventional two- or three-bedroom apartment is increasingly being valued not only according to what a long-term tenant can afford to pay annually, but also according to the income it could generate from short-term occupants.

According to the Lagos Short-let Market Report 2025 by Edala Development, the Lagos short-let market generated an estimated N281.03 billion in revenue in 2025.

The report was based on 5,806 listings and projected revenue of approximately N285.5 billion for 2026. It also found that short-let properties can generate returns between three and six times higher than conventional residential leases.

Instead of relying on annual rent, an investor can furnish an apartment and market it for nightly or weekly stays.

For brokers, this provides another selling point because the property can be presented not simply as a home, but as an income-generating hospitality asset.

The calculation is influencing property values in areas including Lekki, Victoria Island, Ikoyi, Ikeja, Yaba and Surulere.

In Banana Island, the average short-let rate reportedly reached about N329,000 per night in 2025.

Such potential returns can encourage investors to value apartments based on their short-let earning capacity rather than conventional rental income, creating additional pressure on both property values and rents.

The growth of short-lets also has implications for housing supply.

Every conventional apartment converted into short-let accommodation potentially removes a unit from the long-term rental market.

A June 2026 report by The Guardian cited concerns from industry stakeholders that the conversion of residential properties into short-lets in Lagos and other major cities is contributing to the decline in conventional rental stock and rising housing costs.

Technology changes the brokerage market

Technology is also transforming the way property brokers operate.

Online listing platforms, digital advertising, social media, property mapping tools and faster access to market information allow brokers to circulate properties to thousands of prospective buyers within a short period.

While these tools can encourage greater professionalism in the sector, they can also create perceptions of scarcity and competition.

Brokers can advertise properties aggressively, circulate listings through WhatsApp groups and social media, generate multiple expressions of interest and create a sense of urgency that may encourage prospective buyers to increase their offers.

Registered estate agents, however, have differing views about the extent of brokers’ influence on property prices.

While some acknowledge that brokers contribute to rising prices, others attribute the increases largely to the rising costs of land, cement, steel, labour, diesel, imported materials, financing, infrastructure and statutory charges.

Vice Chairman, International, of the Association of Estate Agents in Nigeria (AEAN), Dr Adeniyi Tinubu, said brokers contribute to the rapid increase in Lagos property prices but described them more as “price amplifiers” than price-setters.

According to him, land scarcity, inflation and exchange-rate pressures remain the fundamental forces behind the market’s price increases.

“Property brokers, flippers and speculative investors are not simply passive observers of Lagos’ property boom. They can actively accelerate it. But they operate on top of powerful fundamental forces rather than creating the entire increase themselves,” Tinubu said.

Tinubu, who is also the Chief Executive Officer of Hudders Field Property Agency, said brokers contribute to property price inflation through expectation-driven pricing.

He explained that asking prices are often based on the prices at which neighbouring properties are listed rather than what those properties actually sold for.

He also pointed to multiple agency commissions, information gaps between property owners and buyers, and expectations of future appreciation as factors contributing to the trend.

“This creates an important distinction between asking prices and transaction prices,” he said.

“A market can appear to be appreciating rapidly because advertised prices are repeatedly marked upward, even when actual completed transactions have not increased by the same magnitude.”

Tinubu said property flippers have a more direct impact on prices, while land speculation represents the strongest inflationary mechanism.

According to him, investors who purchase land solely in anticipation of future appreciation effectively remove the land from productive supply while waiting for its value to increase.

“The more concerning phenomenon is speculative land holding combined with aggressive asking-price benchmarking. It can create a market in which anticipated future prices become the basis for today’s prices, rather than today’s prices being determined primarily by rental income, replacement cost and genuine end-user demand,” he said.

He added that buying properties for quick resale, particularly off-plan units and land in emerging areas, could push prices beyond underlying incomes, reduce access to homeownership, increase unaffordability and distort the rental market.

However, Tinubu cautioned against viewing every property investor as harmful.

He noted that speculative capital can provide early-stage funding for developers, help bring neglected land into the formal market, accelerate infrastructure and development, reduce financing risks, improve distressed properties and increase liquidity in the market.

“The critical distinction is between productive investment and purely extractive speculation,” he said.

“An investor who buys off-plan, holds the property, rents it out or develops it contributes to housing supply. An investor who simply buys scarce land, does nothing with it and resells it at a substantial markup contributes much less to housing supply while potentially increasing the acquisition cost for the eventual user.”

The National Chairman of AEAN, Olugbenga Ismail, also said speculation can amplify an already rising property market.

“Where properties and plots are repeatedly resold over short periods without any corresponding improvement, development or value addition, each transaction may introduce another layer of expected profit,” Ismail said.

He explained that the issue becomes more pronounced in emerging areas where investors buy properties largely on the expectation that another buyer will later pay more.

When speculation begins to outpace housing production, genuine homebuyers have to compete not only with other prospective homeowners but also with investors seeking capital appreciation.

Ismail, who is Principal Partner at Ismail and Partners, acknowledged that short-lets can reduce conventional rental supply in particular neighbourhoods.

However, he cautioned against attributing rent increases across Lagos entirely to the short-let sector without stronger empirical evidence.

“There is also evidence that landlords and investors have converted conventional rental accommodation into short-lets because of potentially higher returns and different tenancy-risk considerations,” he said.

“But the evidence is more nuanced than simply saying, ‘short-lets are increasing everywhere and therefore rents are rising.’”

Ismail called for greater transparency, professionalism and increased housing supply rather than direct price controls.

“The ultimate solution to housing affordability is not simply stopping somebody from selling property at a profit. It is ensuring that Lagos continually produces enough properly titled, serviced and appropriately priced housing to meet demand,” he said.

“Our long-term goal must therefore be greater supply, better data, stronger professional standards and a more transparent property market,” he added.

The Chairman of the Lagos State Chapter of AEAN, Abiodun Adelaja, attributed the steady increase in property prices largely to the rising cost of construction materials and general inflation.

He said landlords and developers determine property prices based on prevailing construction costs, making it difficult for them to sell properties at prices comparable to those charged several years ago.

Adelaja called for measures to reduce construction costs and greater government intervention through the development of public housing estates that would provide more affordable alternatives to privately developed estates.

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HDAN Commends Wike as Infrastructure Development Transforms FCT Real Estate

Says massive investment in roads and public infrastructure is unlocking new opportunities for housing, investment and economic growth

By Housing TV Africa

The Housing Development Advocacy Network (HDAN), Africa’s leading and pioneering non-governmental advocacy organisation dedicated to housing development, has commended the Minister of the Federal Capital Territory (FCT), Barr. Nyesom Wike, for what it described as the unprecedented pace of infrastructure development across the nation’s capital, noting that the projects are already reshaping the real estate landscape and opening up new frontiers for housing and investment.

HDAN has, for decades, championed policy reforms, affordable housing initiatives, housing finance, land reforms, real estate regulation and sustainable urban development across Africa. Through sustained advocacy, strategic partnerships and high-level stakeholder engagement, the organisation has made significant contributions to advancing housing development in Nigeria and across the continent, earning recognition as one of Africa’s foremost voices on housing policy and sector reforms.

In a statement issued by its Executive Director, Festus Adebayo, HDAN said that strategic investments in roads, bridges, interchanges and other critical infrastructure have become one of the strongest catalysts for real estate growth in the FCT, significantly increasing land values, attracting private sector investment and accelerating urban expansion.

According to Adebayo, one of the greatest lessons from successful cities around the world is that infrastructure drives real estate development.

“Where roads go, development follows. Where government provides quality infrastructure, investors naturally move in. Housing estates spring up, businesses expand, jobs are created and property values appreciate. This is exactly what we are witnessing today in many parts of the Federal Capital Territory.”

HDAN observed that communities that were once regarded as distant or unattractive to investors are rapidly emerging as prime residential and commercial destinations because of improved accessibility and government investment in infrastructure.

The Network noted that ongoing road construction and expansion projects are unlocking the economic potential of several districts and satellite communities, encouraging developers to embark on new housing projects while giving confidence to financial institutions, mortgage providers and other investors.

According to HDAN, infrastructure development remains one of the most effective government interventions for reducing the cost of housing delivery. Improved road access, drainage systems and other public facilities lower development costs, shorten project timelines and make it easier for developers to deliver quality housing to Nigerians.

The organisation further stated that beyond real estate, infrastructure investment stimulates economic activities across multiple sectors, including construction, manufacturing, transportation, hospitality, retail, financial services and professional consultancy, thereby creating thousands of direct and indirect employment opportunities.

HDAN urged the FCT Administration to sustain the current momentum by extending infrastructure to more satellite towns and emerging districts, stressing that balanced development across the territory would help reduce pressure on the city centre while making affordable housing more accessible to low- and middle-income earners.

The Network also encouraged stronger collaboration between government and the private sector to maximise the benefits of infrastructure investment through planned urban expansion, serviced land development and increased private participation in housing delivery.

Adebayo emphasised that Nigeria’s housing challenge cannot be solved through mortgage finance alone.

“Access to infrastructure is just as important as access to finance. A plot of land without roads, electricity, drainage and water has limited value. But once government provides infrastructure, that same land becomes attractive for housing, commerce and industry. Infrastructure is the foundation upon which sustainable cities are built.”

He added that the remarkable transformation taking place across the FCT demonstrates the importance of visionary infrastructure investment in driving economic growth, improving the quality of life of residents and strengthening investor confidence in Nigeria’s real estate sector.

HDAN reaffirmed its commitment to supporting policies and initiatives that promote sustainable urban development, affordable housing and responsible real estate growth, while calling on other state governments across Nigeria to emulate the FCT by making infrastructure development a central pillar of their housing and economic development strategies.

“The transformation we are witnessing in Abuja is a powerful reminder that strategic investment in infrastructure is one of the fastest ways to stimulate real estate development, create wealth, attract investment and improve the living standards of the people. We commend the Honourable Minister of the Federal Capital Territory, Barr. Nyesom Wike, for this bold approach and encourage the sustained execution of projects that will continue to unlock the enormous economic potential of the Federal Capital Territory.”

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Recent comments by former Zenith Bank Chairman, Jim Ovia, suggesting that real estate delivers better returns than banking have sparked widespread debate among Nigerians, with investment experts weighing in on the merits of property ownership versus traditional savings.

The discussion gained momentum on social media after Ovia’s remarks, with supporters arguing that real estate offers superior long-term returns, while others maintained that banking investments provide greater security and liquidity.

Analysts, however, say rising inflation has significantly eroded the purchasing power of savings, prompting many Nigerians to seek alternative investment options capable of preserving and growing wealth.

Speaking on the issue, real estate and investment expert Joseph Momoh said the comparison between real estate and banking depends largely on investment objectives and economic conditions.

According to him, inflation remains one of the biggest threats to wealth preservation, making property investment increasingly attractive to investors.

“If you buy land in a strategic location and carry out proper due diligence, its value could appreciate significantly over five to ten years, often surpassing returns from traditional savings products,” he said.

Momoh explained that while savings accounts and fixed deposits generally provide modest annual returns, property investments can generate substantial gains through both appreciation and rental income.

He noted that investors who acquire residential properties and lease them out often recover their initial investment over time while continuing to earn income from the asset.

Also commenting, realtor Bawa Musa described real estate as one of the most effective wealth-building tools available to Nigerians.

He argued that money kept in savings accounts is typically deployed by financial institutions for lending and other investments, while property owners retain the full benefit of capital appreciation.

“When you invest in real estate, the increase in value belongs entirely to you. That is why many investors see property as a stronger pathway to long-term wealth creation,” he said.

Musa further noted that investing in property reduces the temptation to spend funds that might otherwise remain accessible in savings accounts.

Investment analyst Mohammed Mustapha also highlighted the multiple income streams available through real estate investments, including rental earnings, capital appreciation and protection against inflation.

He said property investments have historically served as a hedge against economic uncertainty, particularly during periods of inflation and external economic shocks.

“Unlike ordinary savings accounts, a well-selected property can appreciate in value, generate rental income and help preserve wealth during periods of economic instability,” Mustapha explained.

However, he cautioned against the assumption that every property automatically yields high returns.

According to him, the success of a real estate investment depends on critical factors such as location, infrastructure, security, demand and overall market conditions.

“Some properties appreciate rapidly, while others remain stagnant for years. Asset selection is key, and investors must conduct thorough research before committing funds,” he said.

The experts agreed that although real estate can outperform traditional banking investments over the long term, investors must carefully evaluate opportunities and understand the risks associated with property ownership before making investment decisions.

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A recent report shows that the real estate market is not growing in a balanced way. There are too many luxury homes, such as villas, and not enough affordable housing for everyday workers. This makes it hard for many people especially the young and low-income earners—to buy a home.

Officials believe several factors are driving prices up. These include the high cost of land, rising prices of building materials, and steep loan interest rates. Speculators are also playing a big role by buying land just to resell it later at a much higher price. This behavior limits the number of homes being built and pushes prices even higher.

To solve this, the government has told agencies to take action. They must create plans to reduce construction costs and increase the supply of housing. There will also be stricter rules to stop people from using land auctions to inflate prices.

Planning must match real needs. Authorities should keep enough land for housing and not give it all away for shops or office buildings. The goal is to make homes more available and affordable.

The problem is already clear in the numbers. In the first quarter of the year, some areas saw land and housing prices rise by 20% to 40%. Experts blame this on rising material costs, loan rates, and limited housing supply due to legal delays.

To make the market more transparent, the government is building a digital platform. This platform will handle all parts of real estate deals—from tax payments to land registrations. It will work like a stock exchange and give people clear price data while also reducing fraud and tax evasion.

Officials also plan to make it easier and faster to approve housing projects. They want to cut down the time and cost of paperwork by 30%, so more projects can start sooner.

With these changes, the government hopes to control property prices, stop speculation, and make housing more affordable for everyone.

The post Govt Moves to Cool Hot Housing Market as Prices Spike appeared first on Housing TV Africa.

A recent report by Knight Frank revealed that 72 percent of residents are actively looking to buy property. Demand is especially strong among high-income Saudis earning over SR50,000 ($13,300) per month, with 93 percent eager to purchase a home.

The survey of over 1,000 individuals, including 835 Saudis and 100 expatriates, also highlighted a rising interest in homeownership among non-citizens. Around 77 percent of expatriates expressed a desire to own homes in the Kingdom.

This shift reflects Saudi Arabia’s evolving real estate landscape as the country works toward its Vision 2030 goal of increasing homeownership to 70 percent. By the end of 2023, the homeownership rate had already reached 63.7 percent, putting the Kingdom on track to achieve this target.

Despite these gains, affordability remains a major challenge. Many aspiring homeowners are now considering renting as an alternative. In 2024 alone, housing transactions totaled SR267.8 billion across 236,690 sales. This marks a 37 percent increase in transaction volume and a 27 percent rise in value compared to the previous year.

Several key factors are driving this surge in homeownership demand. Many buyers see real estate as a smart investment, while others are drawn to family-friendly communities and high-quality housing. The survey found that 48 percent of respondents were seeking a primary residence, while 31 percent were looking for homes for their children or extended family. These figures indicate that real estate is not just a financial asset but also a long-term stability plan for many families.

Saudi Arabia’s property market has experienced significant price hikes, especially in major cities. Since 2019, apartment prices in Riyadh have surged by 75 percent, while villa prices have increased by 40 percent. In Jeddah, real estate transactions jumped 53 percent in 2024 alone, with property values rising by 43 percent. Dammam has also seen impressive growth, with residential transactions up by 49 percent and apartment prices increasing by 6.2 percent.

While the government is working to increase housing supply, affordability issues persist, particularly for middle-income buyers. Although luxury and premium housing options are expanding, many buyers struggle to find homes within their budget. Most prospective homeowners plan to spend between SR750,000 and SR2.5 million. However, market trends show a mismatch, as the average price of a four-bedroom villa in Riyadh stands at SR2.8 million—beyond the reach of many middle-class buyers.

Financing plays a crucial role in homeownership. According to the report, 58 percent of Saudi buyers rely on family support for their purchases, while 40 percent use self-financed solutions. Mortgage-backed transactions are also increasing, thanks to government initiatives such as Sakani and Dhamanat, which provide easier access to home loans.

The housing preferences of buyers are evolving. More than half of the survey respondents prefer villas, with wealthier Saudis favoring larger properties. However, townhouses and apartments are growing in popularity, especially among younger buyers and middle-income families seeking affordable alternatives. Riyadh and Jeddah remain the top choices for homebuyers, with 54 percent of respondents favoring the capital city as their preferred location.

Although property ownership remains strong, the rental market is also expanding. Many younger Saudis and expatriates are opting for rental properties due to rising housing costs. This trend reflects the dynamic nature of Saudi Arabia’s real estate market, where both homeownership and rental demand continue to evolve.

With Saudi Arabia making significant investments in its real estate sector as part of Vision 2030, the market’s future will be shaped by affordability, price trends, and shifting consumer preferences. As the Kingdom nears its 70 percent homeownership goal, how well the sector adapts to these challenges will determine its long-term success.

The post Saudi Arabia’s Housing Boom: Demand Soars as Prices and Ownership Rates Climb appeared first on Housing TV Africa.

Despite formidable challenges such as volatile exchange rates, inflationary pressures, and the persistent issue of housing affordability, optimism remains strong about the sector’s future.

Real estate has consistently served as a vital pillar of Nigeria’s economy, contributing significantly to the nation’s Gross Domestic Product (GDP). However, the sector is grappling with Nigeria’s surging inflation rate, recently reported by the National Bureau of Statistics at over 34 percent.

This spike in inflation has placed immense pressure on developers, making it increasingly difficult for the average Nigerian to afford a home. Additionally, fluctuating exchange rates have exacerbated the cost of construction materials, over 90 percent of which are imported.

Speaking at the Saudi Arabia Real Estate Forum held in Riyadh, Nigeria’s Minister of Housing and Urban Development, Ahmed Dangiwa, highlighted the immense growth potential within Nigeria’s real estate market. He noted that the sector contributed approximately 5.2 percent to Nigeria’s GDP in 2024 and is expected to surpass ₦2 trillion by the end of 2025. Dangiwa drew attention to Nigeria’s massive housing deficit, estimated at 28 million units, a figure driven by rapid urbanization and population growth. Despite this daunting challenge, he emphasized the vast investment opportunities that exist, particularly within the residential real estate segment.

Dangiwa underscored the importance of strategic partnerships to tackle Nigeria’s housing crisis. The government is focusing on large-scale housing developments through public-private partnerships, innovative financing solutions, and collaboration with state governments to unlock land for affordable housing projects. These efforts aim to bridge the gap between housing demand and supply while boosting the sector’s contribution to the economy.

Addressing the issue of affordability, Dangiwa highlighted government initiatives designed to ease the financial burden on prospective homeowners. One key measure includes the recapitalization of the Federal Mortgage Bank of Nigeria with ₦500 billion, aimed at providing more accessible, single-digit interest mortgage products. Additionally, the government is exploring new funding models, such as Real Estate Investment Funds, which target mortgage interest rates around 12 percent significantly lower than the current market rates of 28-30 percent. These funds are designed to offer financial security to both developers and homebuyers.

To further improve homeownership accessibility, rent-to-own schemes are being introduced, offering flexible payment structures that cater to a wider demographic. Dangiwa also mentioned ongoing collaborations with the Nigeria Governors’ Forum to streamline land acquisition and approval processes, reducing bureaucratic bottlenecks and creating a more conducive environment for real estate development.

Through these comprehensive strategies, Nigeria’s real estate sector is poised to become a major driver of economic growth. Beyond providing much-needed housing, the sector is set to stimulate investments, generate employment opportunities, and contribute to sustainable development across the country.

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While the continent faces hurdles such as housing deficits and regulatory complexities, it also boasts significant opportunities for investors and developers.

The sector, fueled, by rapid urbanization, a burgeoning population, and growing foreign investment, the continent is witnessing a surge in construction and development. From bustling metropolises like Lagos and Johannesburg to emerging markets in East Africa, the demand for housing, commercial spaces, and infrastructure is steadily increasing. However, this growth is not without its hurdles. Issues such as inadequate infrastructure, regulatory complexities, and housing shortages persist, requiring innovative solutions and collaborative efforts to unlock the full potential of this vital sector

Key Growth Drivers:

• Urbanization and Population Growth: Rapid urbanization across Africa is fueling demand for housing, commercial spaces, and infrastructure. The burgeoning population, particularly in younger demographics, is driving increased demand for housing and related services.

• Economic Expansion: Continued economic growth in many African countries, though facing global headwinds, is creating a more robust middle class with increased disposable income. This translates to higher demand for quality housing and commercial spaces.
• Foreign Direct Investment (FDI): Growing interest from international investors is injecting capital into the African real estate market. Factors like favourable exchange rates in some countries and the allure of emerging markets are attracting foreign capital.
• Technological Advancements: The integration of technology is revolutionizing the sector. PropTech solutions are streamlining property management, improving market efficiency, and enhancing customer experiences.

Market Highlights:

• Ghana: A stable political environment and steady economic growth make Ghana a prime investment destination. Accra and Kumasi are witnessing significant development, with a focus on modern, mixed-use developments.
• South Africa: While facing economic challenges, South Africa offers a relatively mature real estate market with opportunities in both residential and commercial sectors. The rise of AI and PropTech is enhancing market efficiency and attracting tech-savvy investors.
• Kenya: Nairobi remains a key hub for real estate investment, though challenges related to overvaluation and regulatory issues persist.
• Nigeria: Despite challenges like bureaucratic hurdles, Nigeria presents a large and dynamic market with high potential returns, particularly in the commercial and industrial sectors.

Key Trends:
• Sustainability: A growing emphasis on sustainability is driving the development of green buildings and eco-friendly communities. This includes the incorporation of renewable energy sources, water conservation measures, and sustainable construction materials.
• Technology Integration: The adoption of PropTech solutions is accelerating, encompassing areas such as property management software, online platforms for property search and transactions, and the use of AI for predictive analytics and risk assessment.
• Co-living and Shared Spaces: The rise of co-living spaces and flexible workspaces is catering to the evolving needs of younger generations and the growing gig economy.
• Regeneration of Urban Areas: Many African cities are undergoing urban renewal projects, revitalizing older neighbourhoods and creating vibrant mixed-use developments.
Challenges:
• Housing Shortages: Severe housing deficits persist across many African countries, particularly in rapidly growing urban centres. This necessitates a concerted effort to develop affordable housing solutions.
• Infrastructure Gaps: Inadequate infrastructure, such as limited access to reliable electricity and transportation, poses a significant challenge to real estate development.
• Regulatory Hurdles: Sometimes, inconsistent regulations can hinder investment and slow development projects.
• Corruption and Lack of Transparency: Corruption and lack of transparency in some markets can deter investors and create an uneven playing field.

The Road Ahead:

The African real estate sector is poised for significant growth in the coming years, driven by urbanization, economic expansion, and technological advancements. However, addressing housing shortages, infrastructure gaps, and regulatory hurdles will be crucial for sustainable and inclusive growth.

The post Forecasting Africa’s Real Estate Market for 2025 appeared first on Housing TV Africa.

A retrospective analysis of the 2024 real estate market shows declining purchasing power due to high inflation, which peaked at 34.6% in November last year. Combined with volatile exchange rates and high-interest rates, these factors have caused a dip in property sales and low demand. However, the rental market continues to thrive, fueled by necessity rather than affordability.

Analysts explain that inflation has significantly eroded consumer purchasing power, leaving many unable to afford property prices. Renting has become the only viable option for a large portion of the population. In 2024, the rental market recorded a 50% rise in demand in some locations, particularly outside city centers.

Unemployment remains a key factor driving demand for rental housing. Although unemployment rates declined slightly in 2024, they are projected to rise again in 2025, pushing more individuals towards rented accommodation. Even for those with stable jobs, the difficulty in accessing mortgages further dampens property sales, leaving renting as the primary option.

In Lagos, the rental market is particularly active, driven by rapid urbanization and a growing population estimated at 20 million. The city attracts thousands of new residents daily, drawn by job opportunities and economic prospects. About 80% of Lagos residents are renters, according to a recent report confirmed by the state’s Commissioner for Housing, Moruf Akinderu-Fatai.

Akinderu-Fatai highlighted the strain on the city’s housing situation, with over 6,000 new residents arriving daily. He acknowledged that while the rental demand poses challenges for the state government, it also presents investment opportunities for private developers to collaborate with the government on housing projects.

Abuja, Nigeria’s Federal Capital Territory, is also projected to see a surge in rental transactions in 2025, despite federal initiatives to make housing more affordable. The city’s growing population and rising demand for housing continue to pressure both the rental and sales markets.

Unlike Lagos, Abuja experienced a construction boom in 2023 and 2024, resulting in an increase in housing supply. Government-backed projects and private developments added new estates and apartment complexes to the market, creating more choices for tenants and heightened competition among landlords. Despite the oversupply, residents note that rents and property prices remain high, even in suburban areas.

Despite economic challenges, industry experts remain optimistic about the real estate sector’s growth in 2025. Wale Akinola, CEO of Earthbound Real Estate, described the year as pivotal for the industry, with opportunities for investors, developers, and first-time homeowners.

“With government-backed initiatives, urbanization, technological advancements, and growing interest from local and diaspora investors, the sector is primed to deliver unprecedented returns,” Akinola noted.

As Nigeria works to bridge its housing deficit, estimated at over 20 million units, the real estate sector in 2025 is expected to lay the foundation for long-term growth and wealth creation.

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Industry stakeholders assert that the state’s growing economic potential and strategic advantages make it an attractive prospect, especially for investors with a long-term vision.

Maxwell Taye, Managing Director of Kairos Realty Development Limited, recently highlighted that Kwara is emerging as a key real estate investment hub in Nigeria. Located in the country’s north-central region, Kwara boasts a unique blend of agricultural strength, rich mineral resources, and a strategic location that makes it highly appealing to both domestic and international investors.

Taye emphasized that Kwara’s robust agricultural base, coupled with its growing population and urbanization, enhances its attractiveness to real estate developers seeking high returns and sustainable growth.

He further noted that, with its promising market conditions and government support, Kwara is positioned to become a major player in Nigeria’s real estate sector. The state’s diverse economic activities, including agriculture and mining, provide a solid foundation for real estate investment. Kwara’s strong agricultural sector, particularly its production of various crops and livestock, draws agribusiness investments, in turn fueling demand for residential and commercial properties.

According to Taye, the real estate market in Kwara is on an upward trajectory. The average price of houses for sale in Ilorin, the state capital, currently stands at around N660 million, with prices ranging from N350 million to N2 billion. This price range reflects the high demand for properties as the state’s population continues to grow and urbanize. With a population of over three million, Kwara’s expanding urban areas are driving the development of new residential neighborhoods, commercial centers, and infrastructure projects.

Taye pointed out that Kwara’s strategic central location enhances its appeal for real estate development. Its proximity to major commercial hubs like Lagos, Ibadan, and Abuja makes it easily accessible to investors, further boosting its investment potential. Kairos Realty, since its entry into the Kwara market, has experienced strong sales, which reflects the growing demand for real estate in the state.

The state’s rich mineral resources, including limestone, marble, and granite, also present ample opportunities for industrial development, creating an additional driver for the demand for real estate infrastructure. As the government continues to implement policies that encourage investment, such as tax incentives for developers and efficient approval processes, Kwara remains a highly favorable destination for real estate investment.

Taye concluded by highlighting that the combination of favorable market trends, strategic location, supportive government policies, and infrastructure development ensures that investors in Kwara’s real estate sector can expect high returns on investment. He assured that Kairos Realty remains committed to contributing to the market by offering affordable property investment opportunities with flexible payment plans for investors looking to capitalize on the state’s promising real estate potential.

The post Why Kwara’s Real Estate Market Is a Prime Investment Destination appeared first on Housing TV Africa.