Is 2025 the Best Time to Invest in Nigeria’s Real Estate?

Did you know Nigeria’s real estate market could be worth over $2 trillion by the end of 2025?

---

 

I
magine owning a property in Sangotedo that doubles in value by 2030. 2025 could be your chance to make it happen. If you’re wondering whether 2025 is your year to invest in real estate, you’re in the right place.

With skyrocketing demand for secure homes, prime locations, and high returns, Nigeria’s real estate market is getting people talking. 

But is 2025 the right time to invest? The answer is yes, if you act wisely.

The article explains why 2025 is prime for real estate investment, covering key trends, opportunities, potential risks, and smart strategies. Whether you’re a first-time buyer, a seasoned investor, or a diaspora Nigerian looking to invest from abroad, we’ll equip you with the knowledge to succeed.

This article is featured in our Real Estate Weekly newsletter. Subscribe now to receive insightful pieces like this directly in your inbox.

 

Why 2025 Is Prime for Real Estate Investment

Nigeria’s real estate market is gaining momentum, and it’s not hard to see why, driven by rapid urbanisation, innovative technology, and supportive policies.

Here’s why 2025 is a game-changer:

1. Urbanisation and Population Boom

Statistics show that by the end of 2025, over 60% of Nigerians will live in urban centres, with Lagos projected to hit 24 million residents by 2030. This surge is driving demand for both luxury and affordable housing, pushing property values up in cities where land is scarce. For example, land prices in Ibeju-Lekki have increased by 25% annually since 2020, driven by projects such as the Lekki Deep Seaport and the Dangote Refinery. 

This growth also creates demand for commercial properties, with mixed-use developments (combining homes, offices, and shops) emerging in cities such as Ibadan and Epe.

2. PropTech and Digital Innovation

In 2024, the Lagos State government partnered with a consortium of local technology firms to revamp its land registry using blockchain technology. This initiative aims to address longstanding issues of corruption, inefficiency, and lack of transparency in land transactions. The project involves tokenising real estate properties, effectively creating digital representations (“digital twins”) of physical assets on a blockchain network. These digital records will include ownership details, title deeds, and comprehensive transaction histories, ensuring that land transactions are tamper-proof and fully traceable. For diaspora Nigerians, PropTech means you can verify titles and buy properties from anywhere, without the stress of bureaucratic delays.

3. Sustainable and Smart Homes

Buyers are demanding eco-friendly homes with solar power, water recycling, and smart automation. These features reduce electricity costs, a significant win in Nigeria’s unreliable power landscape, and boost property value as a result. In Lagos, eco-conscious developments are attracting tech-savvy buyers, with some reporting 15% higher resale values compared to traditional homes. This trend is reshaping the market, as developers prioritise modern, future-proof housing to meet growing demand.

4. Supportive Government Reforms

New policies are making 2025 investor-friendly. Streamlined land registration cuts delays, while tax reliefs for developers encourage more housing projects to tackle Nigeria’s 20 million-unit deficit. Infrastructure investments, like roads and utilities, are boosting areas like Ogun State, where land values have grown 18% annually. These reforms attract both local and foreign capital, setting the stage for growth.

5. Emerging Investment Hotspots

Beyond popular areas in Lagos and Abuja, areas like Ibadan, Epe, Sangotedo, and Ogun State offer high returns. For example:

• Ibadan: 15% annual land appreciation due to urban expansion.
• Epe: 20% ROI driven by proximity to the Lekki-Epe corridor.
• Ogun State: Affordable land near industrial hubs, with 18% growth.

These locations are perfect for investors seeking untapped value.

6. Affordable Housing Surge

With a housing deficit exceeding 20 million units, affordable housing is a goldmine. Developers targeting this market benefit from government incentives and high demand, especially in urban areas. Investors can tap into this by funding projects or buying into rent-to-own schemes, which offer steady returns.

7. New Investment Models

Real Estate Investment Trusts (REITs) and co-ownership platforms make real estate accessible. Instead of buying a whole property, you can invest in shares of high-value developments, starting with as little as ₦500,000. These models are gaining traction, offering flexibility and lower risk.

Smart Real Estate Investment Tips for 2025

Thinking about growing your wealth through real estate this year? Great call.

Here are a few smart tips that can help you maximise your profits in 2025:

1. Look Beyond the Usual Hotspots

Everyone’s rushing to Lekki and Ikoyi, but have you considered emerging markets like Ibadan, Epe, Sangotedo, or Ogun? These areas are still affordable and full of potential. The best time to enter is before everyone else does.

2. Choose Flexible Payment Plans

Full payment upfront isn’t always the only way. A smart move is to go for developers who offer instalment plans or off-plan discounts. You save more and get in early.

3. Go Green

Eco-friendly properties aren’t just good for the planet, they’re great for your pocket too. Think lower energy bills and better resale value down the line.

4. Always Verify Property Titles

This one’s non-negotiable. Before you commit to any deal, make sure the property has a verifiable title, like a Certificate of Occupancy, Governor’s Consent, or a registered Deed of Assignment. And please, confirm it with a property lawyer or the relevant authorities.

5. Stay Updated

The market moves fast, and staying updated gives you the edge. Follow our real estate blog or LinkedIn page for trends, tips, and timely updates.

Risks to Navigate

Okay, real estate in 2025 is full of promise, but like every smart investor, you’ll want to be aware of the bumps along the way. Here are a few things to keep an eye on:

• Inflation and Costs: Construction costs are rising by about 12% each year. That means some projects might face delays, and the homes you’re eyeing could get pricier the longer you wait.
• Financing Barriers: Getting affordable credit is tough right now. Mortgage rates are hovering between 18–25%, which is discouraging for many buyers. That’s why most people lean on personal savings or opt for developer payment plans. It’s not ideal, but it works if you plan it right.
• Regulatory Slowdowns: Some states are improving, but land processes can still be frustratingly slow in certain areas. Just know that reforms are happening, it’s getting better, even if not perfect yet.
• Currency Fluctuations: If you’re investing from abroad, the naira’s instability can make budgeting tricky. A small shift in the exchange rate could mean big changes in cost.

So, what can you do?
Simple: Do your research, work with credible developers or agents, and go for flexible payment options when you can. That way, you’re better prepared, no matter what the market throws at you.

Is 2025 the right time to invest in Nigeria’s real estate?

Absolutely, but strategy is key. With urbanisation, PropTech, and government reforms fuelling growth, the market is ripe for profit. 

Act now, as land prices in emerging areas are rising 20% annually. 2025 may be your last chance to buy at today’s rates.

Ready to make 2025 your breakthrough year?

Book a free consultation with our experts to explore exclusive property deals in Epe, Ibadan, and beyond. Subscribe to our newsletter for weekly insights and follow us on LinkedIn for market updates. Don’t wait, your dream investment starts here!