Nigeria’s yearly housing demand continues to soar, with an estimated five million new individuals requiring shelter each year due to the country’s 2.5 per cent population growth rate.
This translates into a need for at least one million additional homes yearly, according to a new report by Lagos-based real estate firm, Diya, Fatimilehin & Company.
The firm noted that the recently launched N1 trillion real estate investment fund under the One Million Homes Housing Project by the Ministry of Finance Incorporated (MOFI) could provide a lifeline to meet this urgent need.
In its “Nigerian Residential Market Review 2025”, Diya, Fatimilehin & Co. highlighted shifting trends across Nigeria’s regional housing markets. In the South-East, housing demand is shifting from self-built homes to estates and gated communities in Onitsha, Owerri, Awka, Umuahia, and Enugu.
Demand is rising for duplexes, flats, and bungalows with modern designs. Land costs between N25 million and N120 million per standard plot, while average prices per square metre range from N40,000 to N180,000.
In the North-West, residential demand in Kano, Kaduna, and other cities is being boosted by agricultural mechanisation, despite security concerns. Land costs average N25,000–N150,000 per square metre, putting standard plots between N15 million and N100 million.
For North-East, cities such as Yola and Gombe, with lower conflict levels, command average rents above N1 million per year for flats. Land prices average N20,000–N40,000 per square metre, or N10 million–N30 million for a plot.
In South-West, Lagos remains Nigeria’s most expensive property market, with Ikoyi, Banana Island, and Victoria Island sustaining premium status. A four-bedroom flat in Ikoyi is now priced at about N1.5 billion.
Beyond Lagos, Ogun and Oyo States are emerging alternatives, with areas like Alalubosa and Iyaganku GRA in Ibadan and Laderin Estate in Abeokuta seeing rentals of up to N3 million annually.
The report linked these trends to large-scale infrastructure projects, including the Lagos Blue and Red Line Metro rails, the Lagos-Ibadan Expressway, and the Lagos-Calabar coastal highway. Public-private partnerships are also driving housing growth in cities like Abeokuta, Ibadan, and Osogbo.
The North-Central anchored by Abuja, prime neighbourhoods such as Maitama, Asokoro, Guzape, and Ministers’ Hill now attract prices of about N1 billion for a four-bedroom detached house. Affordability challenges are pushing investors towards Lafia, Minna, Jos, and Makurdi, where land prices average N35,000–N60,000 per square metre, or N20 million–N40 million per plot.
Emerging hotspots highlighted in the region include Karsana in Abuja, Karu and Masaku in Nasarawa, Rayfield Extension in Jos, and parts of Tunga in Minna.
The report, endorsed by Tola Oyenekan (Head of Research and Advisory), Lanre Olutimilehin (Strategic Advisor), and Idowu Bakare (Head of Practice/Partner), emphasised that bridging the housing deficit requires both private-sector innovation and government-backed financing mechanisms.
