Nigeria to lead Africa in real estate growth through 2029 —Report
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An industry report projects Nigeria’s real estate market will grow at a compound annual rate of 6.9% between 2025 and 2029, outpacing Kenya, Rwanda, Ghana and South Africa, thanks to rapid urbanisation and a persistent housing shortage.
Nigeria is projected to record the fastest real estate market growth among major African economies over the next five years, driven by rapid urbanisation, a growing population and rising demand for housing, according to an industry market projection.
The report forecasts Nigeria’s real estate market to expand at a compound annual growth rate of 6.9% between 2025 and 2029, ahead of Kenya at 5.1%, Rwanda at 3.6%, Ghana at 3.4% and South Africa at 3.0%. Nigeria and Kenya jointly recorded the strongest growth-speed rating, scoring 4 out of 5.
Despite prevailing macroeconomic challenges, foreign exchange pressures and risks associated with property title documentation, Nigeria received a 5 out of 5 rating for overall investment appeal, placing it ahead of other major African property markets. The report attributed the strong outlook largely to Nigeria’s huge market size, rapid urbanisation, persistent housing shortages and the potential for relatively high investment returns.
On rental yields, Nigeria ranked fourth among the markets assessed, with an estimated 8.0% gross rental yield, supported by strong housing demand and a shortage of adequate residential accommodation. Southern African markets recorded the strongest gross rental yields at about 10%, followed by Zimbabwe at 9.2% and Cameroon at 9.1%.
The report identified Lagos, particularly the Lekki corridor and Eko Atlantic, as Nigeria’s major property investment hotspots, where demand for high-end residential, commercial and mixed-use developments continues to attract investors. In Kenya, Nairobi remains the focus for residential and logistics properties, while Kigali is attracting interest in mid-market mixed-use developments.