Nigeria real estate sector contributes 13% to GDP

Nigeria’s real estate sector accounted for 13.10 per cent of the nation's real Gross Domestic Product (GDP) in the first quarter of 2026. According to the Knight Frank H1 2026 Lagos Market Update, the construction sector also saw a year-on-year expansion of 6.38 per cent.

Market performance is being driven by rising residential rents, infrastructure investment, and selective demand in major hubs including Lagos, Abuja, and Port Harcourt. In Lagos, an acute shortage of formal housing has caused rents in prime areas like Ikoyi, Victoria Island, Banana Island, and Lekki Phase 1 to more than double since 2023. This has shifted tenant demand toward more affordable mainland options such as studios and mini-flats.

Infrastructure developments, specifically rail expansions along the Lekki-Epe corridor, are extending the property footprint into suburban areas like Ajah and Ibeju-Lekki. While the broader economy shows signs of stabilization—with headline inflation dropping to 15.91 per cent in June 2026 from 25.29 per cent the previous year—high development costs and affordability constraints continue to impact investment decisions.