Nigeria’s Real Estate Sector Emerges as a Major Economic Contributor
Nigeria’s real estate sector has emerged as one of the top contributors to the country’s Gross Domestic Product (GDP), marking a significant shift in the nation’s economic landscape. In the second quarter of 2025, the economy grew by 4.23 percent year-on-year, reflecting an upward trend from previous quarters. This growth is attributed to the contributions of several key sectors, with real estate playing a prominent role.
According to the National Bureau of Statistics, 10 key sectors were responsible for the majority of Nigeria’s real GDP growth in Q2 2025. The agriculture sector accounted for approximately 26.17 percent of real GDP, while non-oil industries continued to dominate overall output. Trade contributed 18.28 percent of real GDP and remained the single largest contributor in Q2 2025. This sector includes wholesale and retail activities.
Crop production was another major contributor, accounting for 17.80 percent of the GDP. Within the agriculture sector, crop farming was the dominant sub-activity and the second-largest contributor overall. Real estate services also made a significant impact, contributing 12.80 percent to the GDP. This highlights the growing importance of the sector in the Nigerian economy.
Telecommunications and information services showed a growth of 11.18 percent, with the information and communications complex serving as a major non-oil engine. Livestock contributed 5.90 percent, making it the next-largest agricultural contributor. Meanwhile, crude petroleum and natural gas saw a rebound, contributing 4.05 percent to the GDP.
Construction also played a role, contributing 2.60 percent to the GDP. This reflects ongoing infrastructure and building projects across the country. Similarly, the manufacturing sector, including food, beverage, and tobacco, contributed 2.87 percent to the GDP. Financial institutions, particularly banks and related financial services, added 2.84 percent to the GDP.
Public administration and government administration rounded out the top ten contributors, with a 2.73 percent input in Nigeria’s GDP for Q2 2025.
Real Estate After GDP Rebasing
The National Bureau of Statistics (NBS) noted that the rebasing of Nigeria’s GDP was aimed at providing more accurate data capture and formalizing housing activities. According to the NBS, the real estate sector overtook traditional sectors like oil and gas due to a more accurate reflection of its contribution to the economy, better estimation of property values, and increased formalization in housing activities.
The rebasing exercise involved updating base years and incorporating new data, which revealed that the real estate sector’s actual output had been previously underestimated. The NBS emphasized that this exercise highlighted a shift in the country’s economy, with real estate now playing a more prominent role compared to sectors like oil and gas, which had previously dominated.
In monetary terms, real estate recorded a staggering jump of over N25 trillion between the old and rebased figures for 2023. The revised data shows that the sector’s contribution to GDP surged from N10.5 trillion in 2023 (pre-rebasing) to N30.7 trillion after the rebasing and further climbed to N41.3 trillion in 2024, positioning it just behind trade and crop production.
Formalisation of Housing Activities
The NBS explained that the formalization of housing activities, such as property registration and the adoption of formal building practices, contributed to a clearer picture of the sector’s economic contribution. More robust data collection methods led to an accurate representation of real estate activities, including rentals, brokerage, and land valuation.
In nominal terms, real estate services grew by 46.52 percent in the third quarter of 2024, higher by 43.70 percentage points than the growth rate reported for the same period in 2023. On a quarter-on-quarter basis, the sector’s growth rate was 16.15 percent, contributing 5.43 percent to real GDP in Q3 2024, slightly lower than the 5.58 percent recorded in the corresponding quarter of 2023.
Despite declining purchasing power, there is a growing demand for Nigeria’s real estate. Experts estimate a housing deficit of 28 million units, with the nation needing 700,000 new homes annually. The real estate market is anticipated to reach a value of $2.61 trillion by 2025, with a projected compound annual growth rate (CAGR) of 6.91 percent from 2025 to 2029, resulting in a market volume of $3.41 trillion by 2029.
Regulation Needed to Boost Real Estate Potential
Aliyu Wammako, the immediate past President of the Real Estate Developers Association of Nigeria (REDAN), highlighted the need for regulation to boost the sector’s potential. He pointed out that the real estate sector has seen increased patronage and improved contribution to GDP. However, he lamented the inability of the President to assent to the Real Estate Regulation Bill, which aims to bring sanity and improve the sector’s contribution to GDP.
Wammako stated that the bill, passed in the 9th Assembly and presented to the president on June 9, 2023, was declined. He argued that if signed, the bill would have brought more clarity and reduced instances of money laundering in the sector. “Anybody can wake up tomorrow and say he is a developer,” he said, emphasizing the need for regulation to ensure transparency and accountability.
