Top 10 Housing Markets in Nigeria to Watch This Year

Last year, the Nigerian real estate market witnessed tremendous growth. We saw a boom in property values and increased demand for housing in urban areas. Similarly, there was a surge in investments from both local and international buyers. Suffice it to say that the housing markets in Nigeria are booming.

Despite economic challenges, real estate in Nigeria remains one of the most resilient sectors. It continually attracts attention from those looking to invest or settle down.

With Nigeria’s population growing at an average rate of 2.5% annually and urbanization at full throttle, the demand for housing continues to skyrocket.

This year, we’ve got our eyes on ten housing markets that will most likely make waves across the country. To help guide your decisions, this article takes a detailed look at the top 10 housing markets in Nigeria to watch this year. Read on for more details.

Top 10 Housing Markets in Nigeria to Watch This Year

1. Lagos

This is not to brag but when it comes to housing markets in Nigeria, Lagos remains the king of Nigeria’s housing market, and it’s easy to see why. First, the state is home to over 16 million people – talk about the most populous state in the country.

Then, its real estate market caters to diverse needs, ranging from luxury apartments in Banana Island to affordable housing in areas like Ikorodu and Badagry.

If you need some more convincing to invest, look at this: The state’s booming population and constant demand for residential and commercial spaces make Lagos a lucrative market.

Right now, there is a high demand for short-let apartments in Victoria Island and Lekki. The result is that Lagos offers some of the highest rental yields in Nigeria.

Additionally, ongoing infrastructure projects like the Fourth Mainland Bridge promise to open up new areas for development. The speculation is that these infrastructure projects will eventually boost real estate prices in years to come.

Just so you know, Lagos’ diversified economy and its status as Nigeria’s financial hub mean the real estate market here will remain robust. And it has opportunities for all types of investors.

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2. Abuja

Abuja is more than just the seat of power in the country. It is also home to some of Nigeria’s most luxurious real estate. We are talking about planned layout and modern infrastructure. Little wonder Abuja continues to attract high-net-worth individuals and expatriates year in, year out.

One of the most important observations about Abuja, Nigeria is that the housing markets are known for their stability and high-end offerings. Being the political capital of Nigeria, the city is home to government officials, diplomats, and expatriates, driving demand for luxury housing.

If you’re looking for hot housing markets in Abuja, Nigeria think Maitama and Asokoro. Places like Jabi and environs also remain top picks for premium properties.

In that regard, a luxury five-bedroom duplex in Maitama can cost upwards of ₦200 million. However, affordable housing is also emerging in areas like Lugbe, Karu, Gwarinpa and Lokogoma. Take a look at other emerging locations for real estate investments in Abuja.

Want to know what makes Abuja tick? It’s the city’s organized layout and majorly, security. Plus, the high disposable income among residents also makes it an attractive option for investors.

So, why watch closely? Abuja offers a mix of high-end and affordable housing. This inadvertently makes it an ideal market for varied investment portfolios.

3. Port Harcourt

Port Harcourt is known as the oil capital of Nigeria. The city is not only an industrial area but also a growing residential and commercial real estate market.

The city attracts professionals working in the oil and gas sector, leading to a steady demand for residential and commercial properties. As the heart of Nigeria’s oil industry, this city continues to thrive as a top contender in the country’s housing market.

In Port Harcourt, GRA (Government Reserved Area) is a prime location, with properties ranging from ₦90 million to ₦250 million. If you want more affordable options, then you have to look towards emerging neighborhoods like Choba, Rumukwurushi, Obio-Akpor and Rumuodomaya.

Though flooding remains a concern in some parts of the city, you can still invest in waterfront properties. You only need to do your due diligence.

Why does Port Harcourt stand out? The presence of multinational companies and a growing middle class ensure that there’s a sustained demand for housing. And expansion of mixed-use developments in areas like GRA and Trans-Amadi is an open invitation to investors of all kinds to have a piece of the city.

4. Owerri

Owerri, often called the “Heartland City,” is a top contender in the Southeast real estate market. The city is fast becoming a huge housing market, thanks to its growing middle class and influx of businesses.

If you know Owerri well enough, you’d know that it has a vibrant hospitality industry. This is possibly the reason why Owerri is attracting both developers and investors.

As the years go on, the city’s growing population and improved infrastructure, such as better road networks, have continued to increase demand for commercial and residential buildings.

If you’re thinking of investing in Owerri real estate, consider Ogbaku, Ngor-Okpala, Ikenegbu and Aladinma. Both areas are popular for residential properties, while New Owerri is ideal for commercial developments

With land prices ranging from ₦4 million to ₦10 million per plot in prime areas, Owerri offers a mix of affordability and potential for high returns.

Also, growth in student housing near Imo State University and Nekede Polytechnic ensures that the demand for housing never goes down. And to crown it all, the city’s location in the Southeast makes Owerri a market worth exploring.

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5. Enugu

Enugu has consistently shown potential as a thriving housing market. One of Enugu’s strongest points is its serene environment. Besides that, there is also improved infrastructure and security which makes the city appeal to retirees, families, and young professionals.

For these reasons, Enugu remains a top destination for real estate in the South-East. Places to invest in Enugu include Independence Layout and New Haven. GRA and Emene are also sought-after neighborhoods.

For those that want to buy property, a three-bedroom bungalow in Independence Layout and GRA averages ₦100 million ₦300 million. While you can get empty plots of land for much lower prices.

6. Asaba

In recent years, Asaba, the capital of Delta State, has become an alternative real estate option. But now, it’s standing on its own as a growing housing market in Nigeria.

These days, people are spilling out from Onitsha and its environs and moving into Asaba in droves. So, what we find is a city witnessing rapid growth, largely fueled by its closeness to Onitsha.

Again, being a gateway between the South-East and South-South regions has done a lot to increase migration to the city and improve its appeal.

Now there is increased demand for housing, we see more development of luxury estates and affordable housing projects. Areas like Summit Road and Asaba GRA are witnessing significant growth in demand for residential properties.

In the same vein, the construction of the second Niger Bridge has boosted accessibility, making Asaba a preferred choice for investors. As of recently, land in well-developed areas like Okpanam Road costs between ₦5 million and ₦45 million per plot.

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7. Awka

Awka is gradually shedding its image as a quiet town and emerging as a vibrant real estate market, thanks to its growing economy and influx of investors. As a university town and administrative center, Awka benefits from a youthful population and growing commercial activity.

Why should you watch Awka? The city’s closeness to Onitsha, a major commercial hub, makes it a great location for real estate investments. There is a noticeable increase in demand for student housing, leading to the expansion of residential estates around Ngozika Housing Estate and Ifite.

Besides that, there is also growth in commercial real estate near Unizik Junction. Government initiatives promoting urban renewal also drive up the need for housing projects and opportunities for both residential and commercial investments.

Land in Awka GRA costs between ₦5 million and ₦25 million, while rental properties cater to students and young professionals. The ongoing construction of infrastructure projects, including road expansions, will further boost the market.

8. Ibadan

As Nigeria’s largest city by landmass, Ibadan gives investors affordable housing options compared to Lagos and Abuja. Because it is close to Lagos, many see it as an attractive alternative for those seeking cheaper living conditions.

Currently, gated communities and estates like Bodija and Elebu are attracting middle-income families. To this end, land in areas like Akobo and Oluyole costs between ₦5 million and ₦30 million.

What is Ibadan’s investment appeal? As Lagos becomes more crowded, Ibadan offers a quieter alternative with good infrastructure and lower living costs.

Some of the factors boosting the housing market in Ibadan are affordable housing projects by the Oyo State Government. Including improved road networks and transport systems.

Also, expansion in areas like Eleyele, Moniya, and Akobo, means that you can also invest in the market. In the long run, Ibadan’s affordability and closeness to Lagos make it a market worth considering for first-time buyers and investors.

9. Abeokuta

If your goal this year is to own land or contribute to the growth of the housing markets in Nigeria, Abeokuta is another place to set your sights on. Though not as popular as Lagos or Abuja, this city can make your real estate dreams come through.

This is a place where you can purchase land and put up residential buildings for sale or rent. And guess what, your rental yield will be quite bountiful because Abeokuta never lacks renters.

In fact, do you know that more and more professionals and families are moving down to Ogun State? And guess where they are settling? Abeokuta and Ofada. The truth is that Lagos is getting overcrowded and people that have business there but cannot afford to live there anymore are seeking alternative housing locations.

So, thanks to this overcrowding issue, and affordable land prices, Abeokuta is a place that is gradually becoming a mega housing market.

Plus, the ongoing construction of the Lagos-Ibadan railway and other infrastructure projects are boosting accessibility and demand.

Currently, Land prices in areas like Oke-Mosan, Laderin and Idi-Aba range from ₦4 million to ₦30 million per plot. Its affordability and growth potential make Abeokuta a great choice for investors seeking long-term gains.

10. Uyo

Uyo, the capital of Akwa Ibom State, is gaining recognition for its serene environment and emerging real estate market.

Some of the key attractions for investors investing in the Uyo housing market are the city’s wide roads, clean streets, and a low crime rate. All of these converge together to make the city appealing to not just investors but the inhabitants.

Properties in Shelter Afrique and Ewet Housing Estate are in high demand, with prices ranging from ₦7 million to ₦50 million.

Keep in mind that Uyo’s emphasis on tourism and hospitality is expected to drive further growth in the housing market. And as Tourism grows, it will boost the demand for short-let apartments, which is an opportunity you can grab to get into the housing market.

Key Trends Driving Nigeria’s Housing Markets

Diaspora Investments

Nigerians abroad are channeling more funds into real estate, driven by favorable exchange rates and the desire for stability.

Urbanization

With over 60% of Nigerians expected to live in urban areas by 2030, the demand for housing in cities will keep growing.

Technology Integration

PropTech platforms and reputable real estate companies and developers are transforming how Nigerians rent and buy properties.

Why Watch These Markets?

The Nigerian housing market is diverse, catering to various income levels and preferences. The top cities on this list offer opportunities for:

Investors: Investors can expect high rental yields and long-term capital appreciation from these cities.

Homebuyers: There is a wide range of options from luxury apartments to affordable housing for people who want to buy homes in Nigeria.

Developers: There is untapped potential in emerging markets and suburban areas in Nigeria which developers can take advantage of.

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Conclusion

The housing markets in Nigeria are not showing signs of slowing down, and that’s to be expected given the rate of urbanization and population growth happening in the country.

As such, investing in Nigerian real estate is a move worth considering. When you’ve made up your mind to wade into the housing market, keep an eye on infrastructure developments, government policies, and market trends to make informed decisions.

Your next big real estate win could be just around the corner.

To explore any of our real estate investment packages like land banking, retirement plan, kids education investment plan, trade apprenticeship plan or if you want to purchase some plots where you will have residential or commercial buildings, send an email to us at info@affablehomes.com.ng or call +2349134056630.

Top 10 Housing Markets in Nigeria to Watch This Year