The Africa International Housing Show (AIHS), set to take place from July 27th to August 1st, 2025 at the prestigious Transcorp Hilton, Abuja, has spotlighted five compelling reasons to invest in Nigeria’s thriving real estate sector.
As Africa’s leading housing and construction event, AIHS brings together industry leaders, policymakers, and investors to discuss opportunities and chart the future of housing in Nigeria. Here are the five reasons
Booming Demand for Housing
Nigeria, with a population exceeding 220 million and projected to surpass 400 million by 2050, faces a housing deficit of over 28 million units, according to the Federal Mortgage Bank of Nigeria (FMBN). Rapid urbanization in cities like Lagos, Abuja, Ibadan, and Port Harcourt has intensified the demand for residential properties, with supply struggling to keep pace. Investors in rental housing stand to benefit from high occupancy rates and steady rental income, as more people migrate to urban centers seeking better opportunities.
Consistent Property Value Appreciation
Despite economic fluctuations, Nigeria’s real estate market continues to show resilience. The National Bureau of Statistics (NBS) reported a 5.3 percent growth in the sector during Q3 2024, making real estate the third-largest contributor to the nation’s GDP, surpassing even the oil and gas industry. Property values in prime areas like Lekki, Ikoyi, and Victoria Island appreciated by an average of 15 percent in 2024, with similar growth expected in 2025, presenting investors with promising capital appreciation prospects.
Attractive Rental Yields and Passive Income
The rental market in Nigeria remains highly profitable, with yields ranging between 6 percent and 12 percent annually in high-demand locations like Lekki, Yaba, and Ikeja GRA, as reported by Estate Intel. Short-let apartments and co-living spaces are increasingly popular among young professionals and expatriates. For example, during the 2024 Detty December festivities, short-let apartments alone generated $13 million, reflecting the robust potential for passive income from rental properties.
Supportive Government Policies
The Nigerian government has introduced investor-friendly policies to stimulate real estate growth. States like Lagos and Ogun have reduced land documentation costs and streamlined property registration processes. The Federal Mortgage Bank of Nigeria (FMBN) offers low-interest loans through the National Housing Fund (NHF), making homeownership more accessible. Upcoming tax reforms, set to launch in July 2025, aim to ease the cost of doing business in the real estate sector, attracting both local and foreign investors.
A Reliable Hedge Against Inflation
With inflation reaching 34.8 percent in December 2024, real estate stands out as a solid hedge against economic instability. Unlike cash, which loses value due to currency depreciation, property investments appreciate over time, preserving wealth. High-end short-let apartments catering to expatriates and business travelers also offer dollar-denominated income, providing an extra layer of financial protection for investors.
As AIHS prepares to host industry stakeholders in July 2025, the event serves as a timely reminder of the immense potential within Nigeria’s real estate sector. With soaring demand, rising property values, lucrative rental yields, favorable government policies, and a shield against inflation, real estate remains a stable and rewarding investment choice.
For those seeking long-term financial growth and wealth preservation, Nigeria’s property market in 2025 presents a golden opportunity not to be missed.
