Nigeria’s real estate outlook for 2025: Fakanlu shares expert insights

Nigeria’s real estate sector has witnessed significant transformation in recent years, driven by rapid urban expansion, shifting government policies, and increasing demand for sustainable developments. As the industry approaches 2025, stakeholders remain cautiously optimistic, weighing the opportunities and challenges that will define the market’s trajectory.

In an interview with The Guardian, Oluwabusuyi Adonis Fakanlu, CEO of Comfort Architectural Finishing Limited and a respected voice in the real estate sector, shared insights into the key factors shaping the industry. He examined economic conditions, regulatory reforms, technological advancements, and infrastructure expansion, offering strategic advice to investors and developers seeking to navigate the evolving landscape.

READ MORE: Oluwabusuyi Fakanlu’s plan for low-cost, sustainable construction

According to Fakanlu, several elements will influence Nigeria’s real estate market in 2025. Economic stability and government policies will play a central role in determining investment confidence, while urbanisation and population growth will continue to fuel demand for housing, particularly in the affordable segment.

The increasing adoption of property technology, known as PropTech, is expected to revolutionise the industry by improving efficiency, enhancing market transparency, and streamlining transactions. Sustainability and green housing initiatives are also set to gain momentum as consumers and investors prioritise environmentally friendly developments. Infrastructure expansion and foreign investments will be critical to sustaining growth, while political stability will influence long-term planning in the sector.

READ MORE: How demand from diaspora investors spurs Nigeria’s luxury estate

Despite the positive outlook, Fakanlu acknowledged that the industry faces several challenges. Economic fluctuations, regulatory bottlenecks, and infrastructure deficiencies remain key concerns. Currency instability, inflation, and global economic shifts could impact property values and construction costs.

The real estate sector has also struggled with bureaucratic red tape, making land acquisition and project approvals difficult for investors. Additionally, inadequate road networks, inconsistent electricity supply, and inefficient urban planning have hindered the sector’s full potential. Rising insecurity and political uncertainty could further complicate investment decisions, potentially deterring foreign capital inflows.

However, Fakanlu remains optimistic that proactive measures can mitigate these risks. He emphasised the importance of strategic investments in key growth areas such as logistics and warehousing, mixed-use developments, and retail and hospitality real estate. The expansion of green and sustainable developments is also expected to accelerate, driven by the increasing awareness of energy-efficient housing solutions. Affordable housing, a long-standing challenge in Nigeria, remains one of the most promising areas for growth. Addressing structural barriers, securing government intervention, and implementing strategic financing solutions will be crucial to unlocking this segment’s full potential.

The role of both government and private sector players will be instrumental in shaping the real estate market in 2025. With Nigeria’s housing deficit exceeding 20 million units, a collaborative approach will be required to bridge the gap. Public-private partnerships, regulatory reforms, and improved political frameworks are expected to enhance the sector’s stability. Financial institutions will need to introduce more flexible lending options to support real estate investments, while policymakers must prioritise land reforms and urban development initiatives.

READ MORE: Alleged Defamation: Senator Natasha sues Akpabio, demands N1.3b damages

Technology is also set to redefine the real estate landscape. The rise of PropTech will bring new efficiencies to the sector, from smart housing solutions to blockchain-powered property transactions. Digital platforms will improve property listings, data management, and customer engagement, offering investors and developers a more streamlined approach to navigating the market. As competition intensifies, embracing these technological advancements will be essential for maintaining a competitive edge.

For investors and developers looking to enter Nigeria’s real estate market in 2025, Fakanlu advised a careful approach rooted in market intelligence and strategic partnerships. He underscored the importance of understanding local market dynamics, forming strong alliances with experienced professionals, and ensuring compliance with regulatory frameworks. Investing in affordable housing, integrating technology, and remaining adaptable to shifting economic conditions will be critical to long-term success.

READ MORE: You’re marginalising Muslims, Shariah Council tells Tinubu

Overall, Fakanlu remains confident about the future of Nigeria’s real estate sector, while acknowledging the need for structural reforms. The demand for real estate remains strong, and ongoing infrastructure development is creating new opportunities. However, challenges such as affordability constraints, political uncertainty, and economic instability must be addressed to ensure sustainable growth. The success of the market in 2025 will ultimately depend on a combination of sound economic policies, government initiatives, and private sector innovation.

With a growing population, increasing urbanisation, and evolving consumer preferences, Nigeria’s real estate industry holds immense potential. However, unlocking this potential will require a deliberate focus on sustainability, technological integration, and collaborative governance. By aligning with global standards and addressing local challenges, stakeholders can position the sector for long-term growth and stability.