Stakeholders in the real estate sector are optimistic that Nigeria’s real estate and construction sector will witness strong growth driven by nationwide infrastructure expansion, targeted capital deployment and a shift towards logistics, data-driven assets and residential development.
They projected that where roads, rail, utilities and digital networks expand, property markets inevitably follow.
Nigeria’s infrastructure deficit, estimated to be far below global best-practice benchmarks, was described as both a major constraint and a generational investment opportunity.
Experts estimate that about $3 trillion will be required over the next 30 years to raise Nigeria’s infrastructure stock to 70 per cent of GDP.
Despite prevailing macroeconomic pressures, stakeholders projected that construction activity would continue in 2026, though with greater discipline and reduced speculative development. They noted that tighter financing conditions and a pre-election policy environment, as the country prepares for the 2027 general elections, are expected to shape more cautious investment behaviour.
The experts spoke at the Nigeria Construction and Real Estate Market Outlook, themed: ‘Infrastructure Development: A Catalyst for Real Estate, Construction and Economic Growth’, organised by the Royal Institution of Chartered Surveyors (RICS) Nigeria Group in collaboration with the Nigerian Institution of Surveyors (NIS) and the Nigerian Institute of Quantity Surveyors (NIQS).
The forum brought together regulators, investors and developers, who agreed that infrastructure delivery will remain the single most important anchor for property value growth in the country.
In his remarks, Chairman of the RICS Nigeria Group, Tayo Odunsi, highlighted the interconnectedness of construction, real estate and economic development.
He identified conviction, access to patient capital and effective project execution as the three essentials for sustained sectoral growth.
Unveiling the market report, the Chief Investment Officer of Panterra Real Estate Group, Ayo Ibaru, said infrastructure-led growth would increasingly determine where capital flows within the property market.
According to Ibaru, government infrastructure spending has a strong multiplier effect, unlocking private development, accelerating asset creation and deepening the services economy linked to real estate. He noted that construction forms the foundation of the broader property economy, stressing that assets must first be built before they can generate value through leasing, facility management and financial services.
“The housing sector remains one of the most powerful economic multipliers, touching banking, insurance, labour and supply chains simultaneously,” he said.
Ibaru said the outlook points to a growing pivot towards sectors tied to trade and digital infrastructure. Land development, organised retail and logistics parks are expected to attract increased institutional interest, while technology-driven real estate, particularly data centres, is projected to see accelerated investment as Nigeria’s digital economy expands.
He added that infrastructure corridors are likely to define new growth clusters, with investors positioning early around transport and utility upgrades.
On the residential front, Ibaru said activity is expected to remain strong, albeit with a familiar skew.
“The luxury housing segment is expected to continue attracting capital, reflecting its resilience and strong buyer pool,” he said.
However, the report also anticipates renewed, though still limited, attempts at structured mass housing, supported by emerging mortgage frameworks and public-private partnerships.
The outlook highlighted the role of the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) in improving liquidity within the housing market.
Industry leaders described the fund as an early-stage but significant intervention designed to provide mortgage access and off-take guarantees that enable developers to raise financing. While participants acknowledged operational teething issues, there was a broad consensus that the framework could reshape housing delivery if underwriting standards and transparency are sustained.
Speaking at the forum, Lagos State Governor, Babajide Sanwo-Olu, represented by the Commissioner for Housing, Moruf Akinderu-Fatai, said infrastructure planning must stay ahead of urban growth to attract sustained investment.
He described infrastructure as “architecture, not an accessory,” noting that transport networks, planning reforms and institutional consistency are central to long-term confidence in the property market.
Sanwo-Olu said Lagos would prioritise transit-oriented development, urban regeneration, logistics hubs and climate-resilient infrastructure as part of its 2026 strategy. He also pledged continuity in land administration reforms and public-private delivery frameworks aimed at reducing project uncertainty and strengthening investor trust.
Developers at a panel session warned that 2026 would remain a volatile operating environment, with currency fluctuations and rising construction costs continuing to test project feasibility.
They emphasised the importance of early cost planning, phased procurement and designing projects with volatility in mind, warning that poor planning, particularly in infrastructure-heavy developments, can erode margins even before construction begins.
Institutional investors, especially pension-backed funds, signalled a preference for assets with predictable cash flows. Commercial and logistics real estate were viewed as more attractive than speculative residential projects, given their clearer income structures and lower due diligence complexity.
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