Knight Frank Reports 13.10% GDP Contribution from Real Estate

According to the H1 2026 report by Knight Frank Nigeria, real estate accounted for 13.10% of Nigeria's real Gross Domestic Product (GDP). The report indicated that real GDP grew by 3.89% in the first quarter, while construction expanded by 6.38%.

Headline inflation decreased to 15.91% in June from 25.29% the previous year. The naira stabilized between N1,360 and N1,380 per dollar, and external reserves exceeded $51 billion.

Mr Frank Okosun, Senior Partner/CEO of Knight Frank Nigeria, described the first half of 2026 as a period of consolidation, with improved inflation rates and stronger reserves benefiting developers and investors. In Lagos, rents in prime areas such as Ikoyi, Victoria Island, Banana Island, and Lekki Phase 1 saw significant increases, with three-bedroom apartments now costing between N22 million and N45 million annually.

The Nigeria Tax Act 2025 exempted residential sales and leases from VAT and removed withholding tax on individual residential rents.