Nigeria’s Real Estate Market Poised to Hit $2.25 Trillion by 2025 — Dangiwa

Nigeria’s Minister of Housing and Urban Development, Ahmed Dangiwa, has called on international investors to explore opportunities in the nation’s real estate sector, particularly under the Federal Government’s Renewed Hope Cities and Estates Programme.

Speaking at the Saudi Real Estate Forum, Dangiwa highlighted Nigeria's vast potential despite its current housing deficit of 28 million units. He emphasized that the real estate sector, contributing about 5.2% to Nigeria’s GDP in 2024, is projected to grow to a market value of $2.25 trillion by 2025.

“There’s immense investment potential in residential real estate as Nigerians urgently need homes. Partnering with the government can help meet this demand at scale,” Dangiwa noted.

The forum, “Balance and Innovation in the Real Estate Landscape,” featured prominent global figures, including Qatar's Minister of Municipality Abdullah Al-Attiya, and the Maldives' Minister of Housing Abdulla Muththalib.

Dangiwa outlined the government’s multi-pronged approach to tackling housing challenges, which includes public-private partnerships, innovative financing models, and collaboration with state governments to unlock land.

To promote investment in affordable housing, he cited key incentives like facilitated land access, bankable offtake guarantees, and low-interest financing. Addressing Nigeria’s high mortgage rates—often as high as 30%—Dangiwa revealed plans to recapitalize the Federal Mortgage Bank of Nigeria with N500 billion to offer single-digit mortgage products.

The government also seeks to leverage the Nigerian Capital Market to provide alternative funding models, such as a Real Estate Investment Fund that targets mortgage rates of 12% instead of the current market rates.

Sustainability and innovation were central to Dangiwa's message. He emphasized the importance of green, energy-efficient housing and local construction materials. He also announced partnerships with international agencies like IFC EDGE to foster eco-friendly building practices.

The adoption of digital technologies, particularly through PropTech and collaborations with the World Bank to enhance land titling and registration systems, is also part of the government’s strategy to transform the sector.

Dangiwa reassured investors of ongoing efforts to create a conducive environment for development, including streamlined approval processes through the Nigeria Governors’ Forum.

“Smart policies, innovative financing, and digital transformation are key to making housing more accessible, affordable, and sustainable. This aligns with the Renewed Hope Agenda of the Tinubu Administration,” Dangiwa said.

Source: Punch News