Understanding the Real Estate Market in Nigeria | A Guide From Hybrid LandTech

Understanding the Real Estate Market in Nigeria | A Guide From Hybrid LandTech

Are you curious about the real estate scene in Nigeria or looking to invest in a property there? In this handy guide, brought to you by Hybrid LandTech, we will take you on a journey to familiarize you with the Nigerian real estate market. This is so you can have a successful buying journey for your real estate investment or building project here.

Whether you’re a seasoned investor or just dipping your toes into real estate, we’ve got you covered. Get ready to gain valuable insights into the current state, opportunities, risks, tips, and future outlook of the Nigerian real estate market. So, sit back, relax, and let us be your trusty guide on this exciting adventure!

How Is the Nigerian Real Estate Market Doing?

The Nigerian real estate market has always been dynamic, and we expect the same trend this year. Lagos, especially is doing well, with steady growth expected in the rest of 2023.

Below is another infographic that shows the weight the Nigerian real estate has been pulling:

Whether you’re a home buyer, seller, or investor, this infographic is essential to keep up with the latest trends in the industry.

The market is being driven by several factors, including:

  • Population growth: Nigeria is one of the fastest-growing countries in the world, with a population of over 200 million people. This growth puts pressure on the housing market, as more people need a place to live.
  • Economic growth: Despite earlier challenges, the Nigerian economy is getting back its clean bill of health, which is providing more people with the means to purchase property.
  • Foreign investment: Foreign investors are increasingly interested in the Nigerian real estate market, which is safe and profitable.

As a result of these factors, the Nigerian real estate market is expected to continue to grow in 2023. This growth will create opportunities for both investors and homeowners.

What to Expect?

Here are some specific trends that are expected to shape the Nigerian real estate market in 2023:

  • Increased demand for affordable housing: Most Nigerians cannot afford to buy high-end property, so there is a growing demand for affordable housing. This demand is being driven by the country’s large population of low- and middle-income earners.
  • Growth in the luxury market: Despite the strong demand for affordable housing, there is also growth in the luxury market. This is being driven by the increasing wealth of Nigeria’s middle and wealthy class and the growing number of foreign investors.
  • Increased use of technology: Technology is playing an increasingly important role in the Nigerian real estate market. This is being driven by the growing use of the internet and mobile devices, which are making it easier for Nigerians to find and purchase property.

How Big Is Nigeria’s Real Estate Market?

aerial view of buildigns
Photo by The Lazy Artist Gallery on Pexels.com

Nigeria’s real estate market is considered one of the largest and most vibrant in Africa. The exact size of the market can be challenging to determine due to various factors, including the informal nature of some real estate transactions and limited data availability.

However, it contributed over 9 trillion naira (around $26.3 billion) to the Nigerian economy in 2022. Additionally, the market’s significance and potential can be seen through several key indicators.

Residential real estate constitutes a significant portion of the market, driven by the country’s growing population and urbanization. The demand for housing, particularly in major cities, continues to rise, resulting in increased construction activities and property development.

Commercial real estate is also a substantial segment of the market. Nigeria’s status as an economic hub in Africa attracts both local and international businesses, leading to the development of office spaces, retail outlets, and industrial facilities. Major cities like Lagos and Abuja are witnessing significant commercial real estate growth.

Furthermore, the emergence of real estate investment trusts (REITs) has further expanded the market. REITs allow investors to participate in real estate projects and benefit from rental income and capital appreciation.

The market’s size is further emphasized by the presence of notable real estate developers, both local and international, who actively engage in large-scale projects across the country.

While precise figures on the market’s overall value are not readily available, estimates suggest that the Nigerian real estate market is worth hundreds of billions of dollars. Its importance and potential for growth are widely recognized, attracting domestic and foreign investors seeking opportunities in this dynamic sector.

Challenges and Reforms in the Nigerian Real Estate Market

Despite the potential and growth in the Nigerian real estate market, it faces several challenges. One of the critical issues is the lack of proper infrastructure, including reliable electricity, water supply, and road networks. These deficiencies impact the overall attractiveness and value of properties. Additionally, issues surrounding land documentation and titling pose challenges to property ownership and investments.

However, despite these challenges, the Nigerian real estate market shows resilience and potential. The demand for housing, in particular, remains high, driven by a growing population and increasing urbanization.

Furthermore, the government has launched various initiatives to address infrastructure gaps and improve the ease of doing business, which is expected to impact the real estate sector positively.

In 2022, the government implemented over 160 Ease of Doing Business Reforms, which aimed to make it easier for businesses to operate in Nigeria. The reforms included several measures, such as the reduction of the number of permits required to start a business and the simplification of the tax system. These reforms have made it easier for real estate developers to operate in Nigeria, which has led to increased investment in the sector.

Also, a change of government this year is promising to bring changes in the real estate market. Some critical real estate-related promises made by new President Bola Ahmed Tinubu in the 2023 electioneering process include the plan to build affordable housing units and create a low-interest mortgage scheme.

How to Invest in Nigerian Real Estate

When considering investing in Nigerian real estate, it is essential to conduct thorough research and due diligence. Engaging the services of a reputable real estate service in the industry like Hybrid Landtech can help navigate the market and offer you a listing so you can choose what works best with your budget, location, and taste.


The Nigerian real estate market holds significant potential for investors seeking opportunities in a dynamic and evolving sector. With a growing population, urbanization, and government reforms, the market presents various investment options ranging from residential to commercial properties. While challenges exist, such as inadequate infrastructure and political instability, diligent research and understanding of the legal framework can mitigate risks.

As an investor, it is crucial to engage reputable professionals and conduct thorough due diligence before making any investment decisions. Hybrid LandTech, a leading real estate company, can assist in navigating the Nigerian real estate market and recommend estates that work with your needs – whether land banking or for immediate development – and give you peace of mind.

So, if you are considering investing in Nigerian real estate, send a mail to us at Hybrid LandTech today to explore the opportunities and receive expert guidance tailored to your investment goals.