Nigeria’s real estate surge by 89 percent in third quarter of 2025
According to the National Bureau of Statistics, Nigeria’s real estate sector recorded almost 89 percent nominal growth in the third quarter of 2025. This is one of the strongest performances in years.
This single fact shocked many stakeholders and renewed hope that Nigeria’s real estate growth could drive wider economic recovery. The sector also contributed over 13 percent to GDP, proving that property remains one of Nigeria’s strongest non-oil pillars. However, behind the numbers lies a deeper question: can this growth be sustained?
Nigeria Real Estate Growth Gains and Q3 Performance
In Q3 2025, Nigeria’s economy grew by nearly four percent, with non-oil sectors leading the charge. Real estate stood out, not just in value, but in relevance. Although nominal growth reached about 89 percent, real growth was estimated at around 3.5 percent, which proves that inflation and costs still affect the sector.
Still, demand stayed strong. Rental housing, short-let apartments, and urban residential properties attracted investors. Many buyers turned to property as a hedge against inflation. As a result, Nigeria’s real estate growth became a key talking point among analysts and developers.
However, experts say the growth did not happen by chance. It came from rising property values, population pressure in cities, and increased interest from local and diaspora investors.
Finance, Supply, and Policy Realities
Despite the positive numbers, professionals warn that growth remains fragile. Financing stands out as the biggest challenge. Ayo Ibaru, Chief Executive Officer of Northcourt Real Estate, explained the problem clearly. “For the demand side, you would have to look at financing because that’s really where the challenges are,” he said.
High interest rates limit who can buy a home. Mortgage access remains very low, below one percent of the population. On the supply side, developers face rising costs. Many building materials are imported, and currency pressure makes projects more expensive.
These issues slow down delivery and push prices higher. Experts argue that if Nigeria wants to deepen Nigeria real estate growth gains, mortgage rates must fall and land processes must improve. Slow land titling and unclear property records continue to delay projects and scare investors.
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Climate Change and Economic Implications
Beyond finance and policy, climate change now shapes the future of real estate. Flooding, extreme heat, and erosion increasingly affect Nigerian cities. Coastal markets like Lagos face frequent floods that damage homes and infrastructure. These risks raise insurance costs and reduce long-term property value.
As a result, developers must adapt. Climate-resilient buildings, better drainage, green spaces, and safer locations are no longer optional. They are necessary for survival. Climate risks also affect lending decisions, as banks become cautious about funding projects in high-risk areas.
Economically, real estate remains critical. It supports jobs, construction, services, and urban growth. Strong Nigerian real estate growth gains also help reduce dependence on oil and strengthen the non-oil economy. But without climate-smart planning, today’s gains could turn into tomorrow’s losses.
Conclusion
The Q3 surge proves that Nigeria’s real estate growth is real and powerful. Yet numbers alone are not enough. Affordable financing, land reforms, and climate-resilient planning will determine the future. If policymakers act and developers adapt, real estate can remain a strong engine of growth. If not, the momentum may fade as quickly as it arrived.