By Destiny Uko
As 2025 unfolds, many Nigerians wonder when to buy property and when to hold off. Real estate is a significant investment, and given the current economic shifts, political changes, and evolving lifestyle trends, it’s only natural to pause and consider the timing.
Here’s a straightforward breakdown of what’s happening in the Nigerian property market and whether it might be smart to make a move now.
Urbanization and Population Growth
Nigeria’s cities are expanding rapidly. As more people migrate from rural areas to urban centres like Lagos, Abuja, Port Harcourt, and even emerging cities, the demand for housing is surging. Lagos alone faces a housing deficit of over 3 million units. This growing demand often leads to rising property prices, meaning that the longer you wait, the more you might pay.
Major Infrastructure Projects
The ongoing construction of roads, railways, and airports is significantly boosting property value. Take the Abuja-Kaduna-Zaria-Kano road project, for example. Improved accessibility can make nearby properties more attractive to buyers and investors, driving up their prices. If you buy property in these areas now, you might see your investment appreciate as these projects are completed.
Mounting construction costs
Building materials like cement, steel, tiles, paint continue to climb, driven by inflation and stricter safety regulations. Developers are passing these costs unto buyers, which means that new homes are becoming more expensive. Delaying your purchase could mean paying a premium later.
Government support for homebuyers
While it doesn’t always make headlines, the government is making efforts to support homeownership. Programs like the National Housing Fund (NHF) and recent reductions in land documentation costs in states like Lagos and Ogun ease the burden for first-time buyers.
A hedge against inflation
With inflation driving up the cost of everyday essentials like food, fuel and clothing, many investors are turning to real estate as a safe haven. Unlike cash, which can lose value, property tends to appreciate over time, making it a solid long-term investment.
Secondary Cities
If major cities like Lagos and Abuja feel too crowded and pricey, consider growing cities like Ibadan, Enugu, and Benin City. These locations are seeing rapid development, improved infrastructure and increasing job opportunities—all at relatively affordable rates.
Real-Estate investing without physical ownership
For those who want to invest in real estate without the hassle of managing tenants or maintaining property, Real Estate Investment Trusts (REITs) offer an attractive alternative. This option allows you to earn returns from the property market without owning physical buildings.
Short-Term Rentals
Platforms like Airbnb have made it easier than ever to generate income from real estate. If you own a property close to airports, tourist attractions or business hubs, short-term rentals can provide a steady stream of cash flow.
So is it the Right Time?
With rising demand and ongoing infrastructure improvements, waiting could mean missing out on potential gains. However, as with any major financial decision, it’s crucial to do your research, consult with trusted agents or property lawyers and ensure you’re making an informed choice.
In 2025, Nigerians are evaluating when to invest in property amidst economic shifts, political changes, and lifestyle trends. Urbanization is driving up demand and property prices due to rapid population growth in cities like Lagos, which has a significant housing deficit. Major infrastructure projects, like roads and railways, are increasing property values, suggesting potential investment gains as these developments are completed.
However, mounting construction costs driven by inflation are raising property prices, possibly making now a better time to buy than later. The Nigerian government supports homebuyers through initiatives like the National Housing Fund and reduced land documentation costs, making home ownership more accessible. Real estate is seen as a hedge against inflation, with property values typically appreciating over time.
Secondary cities, such as Ibadan and Enugu, offer affordable real estate investment opportunities due to their development and infrastructure improvements. Investors can also consider Real Estate Investment Trusts (REITs) for a hands-off real estate investment alternative. Short-term rentals, bolstered by platforms like Airbnb, offer additional income potential. Ultimately, while indicators suggest benefits to investing now, prospective buyers should conduct thorough research and consult professionals before making decisions.
