Home > Real Estate Investment > Is Real Estate a Good Investment in Nigeria? The Verdict

If you’re looking to invest in Nigeria’s real estate, this is a valid question.

The short answer is yes, real estate is absolutely a profitable investment in Nigeria. In fact, its market in Nigeria is valued at US$2.61 trillion, according to Statista.

But here’s the catch:

Real estate in Nigeria offers huge returns on investment, but also huge risks. That’s why you must understand the market and the potential challenges before investing.

This article guides you through key factors to consider.

The upside: Why Nigeria's property market is great

In Nigeria, some factors make real estate one of the most rewarding investments.

Some major factors include:

• High property demand

• Hedge against inflation

• Growth in property values.

1. High property demand

Today, the demand for residential and commercial properties in Nigeria is high. This is due to the fast-growing population and urbanisation.

Nigeria is a fast-growing country. Its population is projected to grow to over 377 million by 2050. With this population increase, more people will migrate to urban centres for work and business.

This migration will create a housing shortage and increase the demand for both homes and business or office spaces. For instance, as of 2023, Nigeria needed at least 28 million houses for its population (Mortgage Bank Plc.).

Imagine then what happens as the population grows: property values and rent will continually increase, particularly in major cities such as Lagos, Abuja, Port Harcourt, and Enugu.

Given the low supply, investing in real estate, particularly rental properties, will likely yield good returns.

Read also: How to get started with investing in real estate.

2. Hedge against inflation

As of September 2025, Nigeria’s inflation rate was 18.02% (Central Bank of Nigeria).

Because inflation is high and the naira's value fluctuates, investing in assets that retain their value is the real deal. Real estate, particularly land and completed buildings, is always a good store of value.

So, when the cost of everything rises, property values and rent also increase over time. This is a solid shield against inflation, which means investing in Nigeria’s property market is a great idea.

Read also: Types of properties to invest in.

3. Growth in property values

Real estate in Nigeria has a huge potential for capital appreciation. This means that property values have appreciated significantly over the past two decades.

Statista projects that between 2025 and 2029, the real estate market in Nigeria is expected to grow by 6.87% annually and reach a total value of US$3.41 trillion by 2029.

So, buying land in a developing corridor (e.g., Himalayas Estate in Enugu City) and holding it for a few years can yield substantial returns. This capital gain is a big win for investors.

See: List of real estate investment opportunities.

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The challenges: Issues to watch out for

No investment is perfect, and the Nigerian real estate market has big obstacles you'll need to deal with.

Some of them include:

• Legal and title fraud

• High capital and costs

• Market fluctuations.

1. Legal and title fraud

This includes issues of land documentation, title verification, and dealing with local land owners (“omo onile”). This process can be complicated and risky due to potential scams.

So, if you don’t properly check documents, it can cause legal problems. That is why due diligence is non-negotiable. You need trusted, reputable legal advice and a qualified surveyor to verify the authenticity of any property or land you wish to buy.

See: How to find your real estate investment team.

2. High capital and costs

To get into real estate investment, you need a substantial amount of money up front. This cost can further increase due to:

• High interest rates

• Construction costs

• Agent fees

• Legal fees

• Disputes over land ownership.

For an average Nigerian, getting an affordable, long-term mortgage or loan is almost impossible. Hence, the entry barrier is high. This is why initiatives like the MOFI Real Estate Investment Fund (MREIF) are trying to bridge this gap.

See: How to invest in real estate with little money for beginners.

3. Market fluctuations and economic factors

While real estate can be a hedge against inflation, it’s not immune to market fluctuations. Bad economies or government policies can negatively impact property values and profits.

For instance, the Central Bank of Nigeria’s recent Monetary Policy Rate (MPR) of 27% is high compared to global standards. This means that investors face higher mortgage and financing costs.

This can ultimately discourage people from borrowing to invest in real estate and slowdown market activity.

See: Financing options and strategies for beginners.

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The verdict: Simple advice for beginning investors

If you're still interested in property investing, with all the above factors considered, here’s some simple and practical advice:

1. Prioritise location.

In real estate, the location of the land or property is what drives its value. So, invest in areas with:

• Clear development plans

• And existing infrastructure (e.g., roads, electricity, security)

• Evidence of migration.

Such locations are hotspots and tend to appreciate faster in value.

See: What are the best cities in Nigeria to start investing in real estate in 2026.

2. Always verify.

Never take a property seller's word for it.

Before paying a dime, check all legal documents, titles, and developer credentials. Get advice from real estate professionals and lawyers.

See: How to verify land before you pay.

3. Consider REITs.

If you don't have the capital to buy real estate or want to avoid the stress of managing your property, consider Real Estate Investment Trusts (REITs).

The entry barrier is low, and they allow you to invest a smaller amount and get dividends from your portfolio of properties.

Bottom line

Nigeria's real estate can be a profitable investment. When you understand its foundational strengths and manage its risks effectively, you can build long-lasting wealth for yourself and your generation.

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