Residential Real Estate - Nigeria

The Residential Real Estate market market in Nigeria is expected to reach a value of US$2.08tn by 2024.
This projection indicates a significant growth potential for the country's real estate sector.
Additionally, it is anticipated that the market will experience a compound annual growth rate (CAGR) of 7.71% from 2024 to 2029.
As a result, the market volume is projected to reach US$3.01tn by the end of 2029.
In a global context, China is expected to generate the highest value in the Real Estate market, with an estimated worth of US$112.9tn in 2024.
This highlights the dominance of the Chinese market in the global real estate sector.
Nigeria's residential real estate market is experiencing a surge in demand driven by urbanization and a growing middle class.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Nigeria is experiencing significant developments and trends.

Customer preferences: In recent years, there has been a growing demand for residential properties in Nigeria. This can be attributed to several factors such as population growth, urbanization, and increasing disposable income. Customers are increasingly looking for properties that offer modern amenities, good security, and proximity to essential facilities such as schools, hospitals, and shopping centers. Additionally, there is a rising interest in eco-friendly and sustainable housing options.

Trends in the market: One of the key trends in the Nigerian residential real estate market is the emergence of gated communities and luxury housing estates. These developments offer a range of amenities such as swimming pools, gyms, and landscaped gardens, catering to the growing demand for high-end properties. Another trend is the increasing popularity of mixed-use developments, which combine residential, commercial, and retail spaces in a single complex. These developments provide convenience and accessibility to residents, making them highly sought after.

Local special circumstances: Nigeria has a large and growing population, with a significant portion of the population being young and aspirational. This demographic shift has fueled the demand for housing, particularly among the middle class. Additionally, the government has implemented policies to encourage real estate development, such as tax incentives and streamlined approval processes. These factors have contributed to the growth of the residential real estate market in Nigeria.

Underlying macroeconomic factors: Nigeria's economy has been experiencing steady growth in recent years, driven by sectors such as oil and gas, telecommunications, and banking. This has resulted in an increase in disposable income and purchasing power, leading to greater demand for residential properties. Additionally, urbanization and population growth have created a need for more housing, especially in major cities such as Lagos and Abuja. The government's focus on infrastructure development and urban renewal projects has also contributed to the growth of the residential real estate market. In conclusion, the Residential Real Estate market in Nigeria is witnessing significant developments and trends due to factors such as population growth, urbanization, and increasing disposable income. Customer preferences are shifting towards properties that offer modern amenities and proximity to essential facilities. The emergence of gated communities, luxury housing estates, and mixed-use developments are notable trends in the market. Nigeria's large and growing population, along with government policies to encourage real estate development, are special circumstances that are driving the growth of the market. The underlying macroeconomic factors, including steady economic growth, urbanization, and government infrastructure projects, further contribute to the development of the residential real estate market in Nigeria.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate - Nigeria

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Living Space

Methodology

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