Nigeria’s real estate sector has gained significant attention as it emerged as the third largest contributor to the country’s GDP following the rebasing of its economic data. Valued at $2.14 trillion by the end of 2024, the sector experienced a 7.24% growth compared to the previous year, with projections indicating continued growth to $2.61 trillion by 2025 and $3.41 trillion by 2029. This marked a significant shift in the economy, as real estate overtook the once-dominant oil and gas sector in its contribution to Nigeria’s economic output.
Industry leaders, including Odunayo Ojo, CEO of UPDC Plc, attribute this shift to the rebasing of Nigeria’s GDP, which reclassified the contributors to the economy. Ojo explained that the introduction of new components into the GDP calculation has provided a clearer picture of the country’s evolving economic landscape. The real estate sector has long been one of the top contributors, and its continued growth is attributed to industry efforts, government policy interventions, and the overall economic environment.
Several factors are fueling the expansion of Nigeria’s real estate market. These include rapid population growth, urbanization, and a rising middle class. With Nigeria’s population expected to hit 400 million by 2050, there is growing demand for housing, particularly luxury properties in major cities. Affluent Nigerians and expatriates are increasingly seeking high-end residences, further driving the sector’s value. Experts also emphasize the need for accurate geospatial data and technology, such as digital twin systems, to improve land management and real estate asset valuation.
As the sector continues to grow, experts highlight the importance of strategic policies and technological innovations to ensure sustainable development. Geospatial data plays a crucial role in understanding the market’s potential and improving infrastructure planning. The sector’s growth aligns with broader development goals, with real estate now playing a central role in Nigeria’s economic future. Industry leaders remain optimistic that this upward trajectory will be maintained, with policies supporting homeownership and investments in the sector continuing to drive its success.
SOURCE: BUSINESS DAY