Nigeria’s real estate investment will hit $2.25tr by year-end — Dangiwa

The Minister of Housing and Urban Development, Ahmed Dangiwa, has declared that Nigeria’s real estate investment contributed around 5.2 per cent to the nation’s GDP last year, adding that it will increase in market volume to $2.25 trillion by the end of 2025.

Dangiwa made the assertion during a panel discussion at the Real Estate Forum in Saudi Arabia, explaining that despite this growth, there is still tremendous opportunity for investment, especially in the residential real estate segment.

He stated, “Nigerians need homes now more than ever, and you can partner with the Nigerian government to deliver these houses at scale.”

The minister called on global investors in Saudi Arabia to take advantage of the huge opportunities in Nigeria’s housing sector, specifically the Renewed Hope Cities and Estates Programme, to invest in the sector.

Additionally, he disclosed that Nigeria’s huge housing deficit offers enormous business opportunities, with the Estates Programme serving as a low-hanging fruit for investors in the Middle Eastern nation to take advantage of and get good returns.

Dangiwa further noted that Nigeria faces an estimated housing deficit of 28 million units, a situation exacerbated by rapid urbanization and migration.

“The government is tackling this by prioritizing large-scale housing delivery through public-private partnerships, innovative financing, and government-led interventions.”

“Additionally, efforts are underway to engage state governments in unlocking land for affordable housing projects, as difficulties in land acquisition continue to hinder progress,” he added.

He therefore stressed that housing is a fundamental driver of economic growth, social stability, and national development. Achieving a balance in the real estate sector between affordability and profitability means addressing the challenges of sustainability and cost efficiency.

“In Nigeria, rapid urbanization, population growth, and economic pressures necessitate a rethinking of housing delivery strategies. The government is committed to addressing these challenges through initiatives like the National Social Housing Fund and strategic partnerships with local and international stakeholders,” he said.

Addressing the tension between affordable housing and profitability for developers, he acknowledged concerns that affordability often conflicts with commercial viability.

“To counter this in Nigeria, the government is using incentives such as bankable offtake guarantees, facilitated land access, and low-interest financing to encourage investment in affordable housing.”

“The planned National Social Housing Fund aims to mobilize long-term concessional financing to ensure accessibility for lower and middle-income Nigerians.”

Furthermore, innovative models such as off-plan sales and bulk purchasing by cooperatives are being explored to reduce financial risks for developers while ensuring affordability for buyers,” he noted.

The minister also touched on the subject of sustainability, stressing that energy-efficient buildings, the use of local materials, and smart construction techniques ultimately lower maintenance and operational costs.

He further assured investors of the government’s commitment and actions toward enhancing the affordability of Nigerians to purchase homes through mortgages.

Dangiwa pointed out that high-interest mortgage rates, which can reach up to 30 per cent per annum, have historically made homeownership difficult for many Nigerians.

To address this, he said the government is expanding the Federal Mortgage Bank of Nigeria’s reach and recapitalizing it with N500 billion to provide more accessible single-digit mortgage products.

“Additionally, collaborations with the Ministry of Finance Incorporated are in progress to leverage the Nigerian Capital Market and mobilize private sector funding for housing development.”