Nigeria is projected to record the fastest real estate market growth among major African economies over the next five years, driven by rapid urbanisation, growing population and rising demand for housing, according to industry market projection.
The report projects Nigeria’s real estate market to grow at a compound annual growth rate (CAGR) of 6.9 percent between 2025 and 2029, ahead of Kenya at 5.1 percent, Rwanda at 3.6 percent, Ghana at 3.4 percent and South Africa at 3.0 percent.
Despite prevailing macroeconomic challenges, foreign exchange pressures and risks associated with property title documentation, Nigeria received a 5/5 rating for overall investment appeal, placing it ahead of other major African property markets.
Nigeria and Kenya also jointly recorded the strongest growth-speed rating, scoring 4/5.
The report attributed Nigeria’s strong investment outlook largely to its huge market size, rapid urbanisation, persistent housing shortages and the potential for relatively high investment returns.
On regional market performance and rental yields, the report said Nigeria remains one of the continents’ most attractive property markets.
Southern African markets recorded the strongest gross rental yields at about 10 percent, followed by Zimbabwe at 9.2 percent and Cameroon at 9.1 percent.
Nigeria ranked fourth, with an estimated 8.0 percent gross rental yield, supported by strong housing demand, rapid urban growth and a shortage of adequate residential accommodation.
The report, however, noted that investment activity in Nigeria remains concentrated in selected high-value locations.
It identified Lagos, particularly the Lekki corridor and Eko Atlantic, as the country’s major property investment hotspots, where demand for high-end residential, commercial and mixed-use developments continues to attract investors.
In Kenya, Nairobi continues to benefit from strong demand for residential and logistics properties, while Kigali in Rwanda is attracting increasing interest in mid-market mixed-use developments, supported by relatively efficient urban planning.
South Africa, meanwhile, continues to attract investors looking for lower-risk opportunities and greater regulatory stability.
Although the country recorded the lowest growth-speed rating among the markets assessed, at 2/5, it maintained a relatively strong 4/5 investment appeal rating, reflecting the maturity of its property market and institutional environment.
The report highlighted the broader growth potential of Africa’s real estate sector, noting that the continent currently represents only a small proportion of global property wealth despite its rapidly expanding population and urban centres.
The global real estate market is currently estimated at $650.4 trillion, according to the projections.
Asia remains the dominant market, accounting for 41.8 per cent, valued at approximately $272.1 trillion. Europe follows with 27.8 percent, or $180.9 trillion, while North America accounts for 20.2 percent, valued at $131.2 trillion.
South America represents 2.8 per cent, or $18.4 trillion, while Australia and Oceania account for 0.8 per cent, valued at $5.1 trillion.
Africa currently accounts for about 2.7 per cent of global real estate value, estimated at $17.6 trillion.
Industry observers said the relatively small share does not necessarily reflect a lack of potential but points to significant room for expansion as African cities urbanise and demand for housing, offices, retail facilities and infrastructure increases.
The report projects that Africas real estate market will expand at an annual rate of 5.58 per cent between 2025 and 2029, more than twice the projected global average growth rate of 2.69 per cent.