Welcome to the exciting world of Nigerian real estate, where the market is ablaze with opportunities! From the hustle and bustle of rapid urbanization to game-changing initiatives tackling affordable housing, the real estate scene in Nigeria is undergoing some serious makeovers.
In this article, Hybrid Landtech will spotlight the industry’s current state. We’ll be talking about the sky-high demand for housing in our vibrant urban centers, the ingenious ways we’re tackling affordability hurdles, and the mind-blowing impact technology is having on property marketing and management.
We’ll also explore real estate trends, from the rising popularity of sustainable building practices, the epic influence of infrastructure development, and the rise of hip co-working spaces and real estate investment trusts (REITs). Get ready to stay in the loop about Nigeria’s ever-evolving real estate market and bag some valuable insights.
Current State of Real Estate in Nigeria as of 2023
The real estate market in Nigeria is growing steadily as of the beginning of the second quarter of 2023. There’s currently a focus on affordable and luxury options – this highlights a trend where real estate is made available for EVERYONE!
The growth of the Nigerian economy is expected to continue in 2023, which will lead to increased demand for real estate. Nigeria’s economy is expected to grow at a rate of 3% which will help reduce unemployment and raise wages. This will lead to higher demand for real estate because people want a safe place to live and invest in property as an investment vehicle.
The rental market is also growing rapidly in Nigeria as more and more people are unable to afford to buy a home. This is creating opportunities for investors who are looking to purchase rental properties. The rental market is particularly strong in urban areas such as Lagos and Abuja.
Technology is playing an increasingly important role in the real estate industry. This is being driven by the growing use of online platforms for buying and selling homes. Online platforms make it easier for people to find and compare properties, and they also provide a safe and secure way to complete transactions.
There’s also an increase in the use of technology to improve the home buying and selling process. For example, there is a growing trend in using drones in virtual tours for marketing. An example can be seen below:
The luxury market is also growing rapidly in Nigeria, in areas like Ibeju-Lekki and Victoria Island, where we have the Eko Atlantic. More and more wealthy Nigerians are looking to buy luxury homes, whether it is through off-plan offers, finished homes or in a buy-to-build scheme . This creates opportunities for developers who can build and sell luxury homes. The luxury market is particularly strong in Lagos, Abuja, and Port Harcourt.
The green building market is also growing rapidly in Nigeria as more and more people are becoming aware of the environmental benefits of green buildings. Green buildings are designed to be more energy-efficient and environmentally friendly than traditional buildings. This makes them more attractive to buyers and investors, and it also helps to reduce the environmental impact of the real estate industry.
Overall, the real estate market in Nigeria is expected to grow steadily throughout this decade. It should also be boosted by the coming in of Ashiwaju Bola Ahmed Tinubu as president, who is expected to bring more transformative changes to the southwestern and federal capital territory of the country, which are the hubs of Nigerian real estate.
The growth of the economy, the government’s focus on affordable housing, the rising demand for rental properties, the increasing use of technology, and the growth of the luxury market are all expected to contribute to this growth.
10 Trends to Look Out For
The Nigerian real estate sector is ever-dynamic and here are things to watch out for in the future:
1. Urbanization and Population Growth
As Nigeria’s population continues to grow and urbanization accelerates, expect increased demand for housing and commercial spaces in major cities. For instance, we may witness the development of high-rise apartment complexes and mixed-use buildings to accommodate the rising urban population.
2. Affordable Housing Solutions
Developers will focus on providing affordable housing options through various initiatives. One example is the construction of housing estates with subsidized pricing or the introduction of rent-to-own schemes, allowing individuals to become homeowners while easing the burden of upfront costs gradually.
3. Tech Revolution
Real estate technology will continue to thrive, with more platforms and tools being introduced. Look out for advanced online property listing platforms with improved search capabilities, augmented reality/virtual reality (AR/VR) property tours, and artificial intelligence (AI)-driven chatbots for enhanced customer service and personalized recommendations.
Also, there is an increase in the use of unmanned aerial vehicles (UAVs), also called drone cameras, in the production of virtual tours and marketing content. 3D prototyping is also an increasing trend, as can be seen in the video below:
4. Rise of Mixed-Use Developments
Mixed-use developments will become increasingly popular, offering integrated living, working, and entertainment spaces. For instance, expect the development of residential towers with ground-floor retail outlets, office spaces, and recreational facilities within the same complex.
5. Emphasis on Green Building and Sustainability
Sustainability will play a pivotal role in real estate development. Watch out for examples such as eco-friendly buildings equipped with solar panels, rainwater harvesting systems, energy-efficient appliances, and green spaces like Greenville Estate, which promote a healthier and more sustainable living environment.
6. Real Estate Investment Trusts (REITs)
REITs will gain traction as attractive investment options. For instance, investors may be able to invest in a diversified portfolio of properties. These include residential, commercial, and hospitality assets through publicly traded REITs or private REITs managed by reputable investment firms.
7. Impact of Infrastructure Development
Infrastructure projects will shape real estate trends and investment opportunities.
For example, the rise in private refineries could mean cheaper and more road construction. It is reported that the Dangote Refinery will be producing 3.3m liters of bitumen (for making asphalt) per 650,000 daily barrels of crude oil.
Also, the construction of new ports, expanded transportation networks, and improved road connectivity may result in new property hotspots, where property values are likely to appreciate. Here are properties available around infrastructural developments like these:
- Havens Cottage, Noforija, Epe, Lagos State
- Royalty By Hybrid Landtech, Ibeju-Lekki, Lagos state
- Greenville Estate, Poka, Epe, Lagos State
- Greenville 2, Ijebu-Ishiwo, Ogun State
- Homesville Estate, Ijako-Poka, Epe
8. Demand for Coworking Spaces
Co-working spaces will continue to grow in popularity, providing flexible working environments for entrepreneurs and freelancers. Expect the emergence of specialized co-working hubs tailored to specific industries, such as technology, creative arts, or professional services.
9. Accessible Real Estate Financing
Financing options will become more accessible, aiding aspiring homeowners. Look for innovative mortgage schemes with reduced interest rates, extended repayment periods, and relaxed eligibility criteria to facilitate homeownership for a broader population segment.
10. Security and Gated Communities
Gated communities with comprehensive security measures will be in high demand. For instance, developers may introduce gated estates with controlled access points, round-the-clock security personnel, and modern surveillance systems to provide residents with a secure and exclusive living environment.
Conclusion
These examples shed light on the exciting trends that can be expected in the Nigerian real estate market. From urbanization and affordable housing initiatives to technological advancements and sustainability practices, the industry is poised for significant transformations.
As the real estate industry in Nigeria undergoes dynamic changes, Hybrid Landtech is at the forefront, adapting to the evolving trends and setting new benchmarks. With an emphasis on innovative technology, sustainability, affordability, and customer-centric solutions, Hybrid Landtech is well-positioned to thrive in the changing market.
By leveraging real estate technology and offering a range of properties that align with the emerging trends, Hybrid Landtech provides investors and homebuyers with opportunities to capitalize on the urbanization, affordability, and sustainable practices shaping the industry. Want to be part of the future of real estate? Send us a mail at hybridlandtech@gmail.com for collaboration or direct investment.