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Nigeria's Real Estate Market Valued at $2.6 Trillion

Nigeria's Real Estate Market Valued at $2.6 Trillion

Nigeria has emerged as Africa's largest real estate market, with an estimated market value of $2.6 trillion. The property sector is projected to grow at an annual rate of 6.9% between 2025 and 2029, surpassing growth rates in Kenya (5.1%), Rwanda (3.6%), Ghana (3.4%), and South Africa (3.0%).

Nigeria's property market significantly outpaces Egypt's $1.6 trillion, Ethiopia's $1.3 trillion, and South Africa's $1.2 trillion. The growth is attributed to Nigeria's large population, rapid urbanization, and expanding commercial centers, particularly in Lagos and Abuja.

The report identifies segments such as affordable housing, student accommodation, and logistics as promising for investment returns. Nigeria's gross rental yield of about 8% is competitive, though lower than South Africa's 10%.

Risks include foreign exchange and title issues in Lagos. Remittances, reaching $96 billion in 2024, are increasingly supporting housing demand through off-plan purchases and land acquisition.

Plus234Feed summary based on reporting from BusinessDay. Read the original report below.

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