Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Leases - Nigeria

Nigeria

The Residential Real Estate Leases market market in Nigeria is anticipated to witness significant growth in the coming years.
By 2024, the market is projected to generate a revenue of US$232.30bn.
House Leases, in particular, will dominate the market with a projected market volume of US$208.80bn by 2024.
This indicates a strong demand for residential properties in the country.
Furthermore, the market is expected to exhibit a steady annual growth rate (CAGR 2024-2029) of 4.23%.
This growth trajectory is estimated to result in a market volume of US$285.80bn by 2029.
These figures highlight the favorable prospects for the Residential Real Estate Leases market market in Nigeria, making it an attractive investment opportunity for both domestic and international investors.
The demand for residential real estate leases in Nigeria is steadily increasing due to a growing population and urbanization.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in Nigeria has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: One of the main factors driving the growth of the Residential Real Estate Leases market in Nigeria is the increasing demand for rental properties. Many Nigerians, particularly young professionals and students, prefer to rent rather than buy a property due to the flexibility and affordability it offers. Renting allows individuals to live in desirable locations without the high upfront costs associated with purchasing a property. Additionally, the growing urbanization in Nigeria has led to an increase in the number of people seeking rental accommodation in cities.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Nigeria is the rise of co-living spaces. Co-living spaces are becoming increasingly popular, especially among young professionals and expatriates. These spaces provide individuals with the opportunity to live in a community-like environment, sharing common areas and amenities. Co-living spaces often offer fully furnished apartments and a range of services, such as cleaning and maintenance, which appeal to busy professionals seeking convenience and a sense of community. Another trend in the market is the growing demand for serviced apartments. Serviced apartments are fully furnished apartments that come with amenities and services, such as housekeeping, laundry, and security. They are particularly popular among expatriates and business travelers who require temporary accommodation with the comforts of home. The demand for serviced apartments is driven by the increasing number of multinational companies and foreign investors in Nigeria, who often require short-term housing solutions for their employees.

Local special circumstances: One of the local special circumstances that contribute to the growth of the Residential Real Estate Leases market in Nigeria is the high cost of property ownership. Buying a property in Nigeria can be expensive, with high property prices and additional costs such as legal fees and taxes. This makes renting a more affordable option for many Nigerians, especially those who are just starting their careers or do not have access to significant financial resources.

Underlying macroeconomic factors: The growth of the Residential Real Estate Leases market in Nigeria is also influenced by underlying macroeconomic factors. Nigeria has experienced steady economic growth in recent years, which has led to an increase in disposable income and improved living standards for many Nigerians. This has contributed to the growing demand for rental properties as individuals have more financial capacity to afford rental payments. In conclusion, the Residential Real Estate Leases market in Nigeria is experiencing growth due to changing customer preferences, such as the preference for rental properties among young professionals, and the rise of co-living spaces and serviced apartments. Local special circumstances, such as the high cost of property ownership, also contribute to the growth of the market. Additionally, underlying macroeconomic factors, such as steady economic growth and increased disposable income, further support the expansion of the Residential Real Estate Leases market in Nigeria.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.