Global Real Estate Report Challenges Nigeria to Unlock $2.6tn Market Potential

Nigeria’s real estate market faces a call for stronger regulation and planning

Nigeria's real estate market, valued at about $2.6 trillion at the end of 2025, has significant room for further expansion, but the country must strengthen regulation, land administration, planning and investor confidence to unlock the sector's potential.

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Real estate entrepreneur and Mayor of Housing, My-ACE China, made the assessment while commenting on a recent global real estate report that identified Nigeria as Africa's largest real estate market by value. The report put Africa's total real estate market at $17.6 trillion, representing 2.7% of the estimated $650.4 trillion global market.

Nigeria Leads Africa in Reported Real Estate Market Value

The global report placed Nigeria's real estate market ahead of several major African markets.

Egypt was valued at about $1.6 trillion, while Ethiopia's market was estimated at $1.3 trillion. South Africa followed at approximately $1.2 trillion, while Kenya and Ghana were valued at $773 billion and $533.3 billion respectively.

The report also projected annual growth of 6.9% for Nigeria's property sector, according to The Guardian's account of the findings.

For industry stakeholders, the figures highlight the scale of Nigeria's property market and its potential to attract additional domestic and international investment.

Expert Calls for Stronger Real Estate Systems

China described the findings as a wake-up call for Nigeria to improve the structure of its real estate industry and make better use of its existing opportunities.

He argued that only a small portion of Nigeria's wider real estate potential has been developed and said stronger institutions and more effective regulation would be necessary to attract additional capital.

According to him, improving the credibility and organisation of the sector would help create greater confidence among both domestic and international investors.

Land Administration Remains a Key Challenge

Land administration was identified as one of the areas requiring significant improvement.

China called for the digitisation and regularisation of land administration, alongside stronger development planning.

Land ownership disputes, multiple sales of the same property and land fraud remain major concerns for property investors because they can create uncertainty over ownership and increase the risks associated with development.

Improving land records and making transactions more transparent could therefore help reduce some of the risks that currently affect property investment.

Investor Confidence Critical to Market Growth

The expert also highlighted trust as an important factor affecting Nigeria's real estate sector.

He argued that stronger regulation and institutionalisation could help attract more capital into the property market, including investment from Nigerians living abroad.

Diaspora capital represents an important potential source of funding for housing and real estate development, particularly where investors can access reliable information and have greater confidence in property ownership and transaction processes.

For the sector to attract larger volumes of institutional and international capital, investors will require greater certainty around land ownership, development approvals, regulation and returns.

Port Harcourt Identified as an Emerging Market

China also pointed to Port Harcourt as an emerging real estate market with substantial development potential.

He argued that the city currently has less development activity and visibility than Lagos and Abuja, which means that its property market is less represented in available statistics.

He estimated that Port Harcourt's growth rate was significantly higher than those of Lagos and Abuja, although these figures were presented as his assessment rather than as official market data.

The comparison highlights a broader issue within Nigeria's property market: activity and investment are heavily concentrated in a small number of major cities, while other urban centres remain relatively underdeveloped.

Planning Needed Before Development Accelerates

China warned that increased investment without proper planning could create new problems for emerging property markets.

He called for development master plans that bring together state governments, local authorities and communities to establish clear frameworks for future development.

Such planning can help determine where residential, commercial, industrial and infrastructure projects should be located while reducing the risk of uncoordinated urban expansion.

For rapidly growing cities, effective master planning is particularly important because infrastructure often struggles to keep pace with population and property development.

Real Estate Development Needs Long-Term Planning

The expert also argued that developers should adopt longer-term approaches to construction rather than focusing only on immediate market demand.

He pointed to the durability of older buildings in international cities as an example of how long-term planning can preserve the value and usefulness of property assets across generations.

For Nigeria, this means considering building quality, infrastructure, sustainability and future urban needs when planning new developments.

Longer-lasting buildings could reduce the need for repeated demolition and reconstruction while helping cities make more efficient use of scarce urban land.

Sustainable Development Gaining Importance

The discussion also comes as sustainability becomes increasingly important to global property investment.

China cited the Alesa Highlands Sustainable Green Smart City project in Rivers State as an example of a development designed around sustainability, technology, community engagement and green infrastructure.

He said the project is intended to incorporate features including renewable power, automation and environmentally sustainable development practices.

For Nigeria's wider housing market, the growing focus on sustainable construction reflects the need to consider energy efficiency, climate resilience and infrastructure costs when delivering new homes and urban developments.

Regulation Could Unlock More Property Investment

A more transparent and regulated property market could also help Nigeria attract larger institutional investments.

Institutional investors typically require reliable information, predictable regulations and enforceable property rights before committing significant capital to real estate.

Improving these areas could make it easier for pension funds, investment companies, foreign investors and diaspora Nigerians to participate in property development.

However, regulation must also be accompanied by efficient government processes. Lengthy approval procedures, unclear land records and inconsistent enforcement can discourage investment even where market demand remains strong.

Housing Supply Must Accompany Investment

The scale of Nigeria's property market should not be viewed solely through its financial value.

Nigeria continues to face substantial housing needs, particularly among low- and middle-income households. Increasing the value of the real estate market without expanding access to affordable housing could leave a significant portion of the population outside formal property ownership.

Investment therefore needs to translate into additional housing supply, infrastructure and well-planned communities.

The challenge for policymakers and developers is to ensure that market growth supports both investment returns and the delivery of homes that households can afford.

Visibility and Reliable Data Matter

China also noted that real estate markets with higher levels of recorded activity tend to receive greater visibility in global rankings and investment analysis.

Lagos and Abuja, for example, have large numbers of developers and substantial transaction activity, giving them greater visibility in market statistics. Emerging markets with fewer documented transactions can appear smaller or less active even when their underlying potential is significant.

Improving property data collection and transaction records could therefore help provide a more accurate picture of activity across Nigeria's cities.

Better data would also give investors and policymakers stronger information for making decisions about housing supply, infrastructure and urban development.

Outlook

Nigeria's estimated $2.6 trillion real estate market demonstrates the scale of the country's property assets, but unlocking more of its potential will require more than increased investment.

Stronger land administration, reliable property records, effective regulation, development master plans and greater investor confidence will be critical to creating a more transparent and investable real estate market.

For the housing sector, the priority should also remain on converting investment potential into additional housing supply, infrastructure and well-planned communities.

As Nigeria's property market continues to expand, the ability to build stronger institutions and improve the quality and visibility of market data could determine how effectively the country converts its substantial real estate potential into sustainable economic and housing development.

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