By: Ike Philip Abiagom
CEO, One Needs Properties Ltd.
Nigerian real estate market has faced severe turbulence over the past five years due to rising inflation, currency devaluation, and economic instability. Once a thriving industry for developers and investors, the sector has encountered significant challenges, pushing many builders into financial distress and forcing property buyers to reconsider their investments.
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.
In a chat with Newsbreeze, Stanley Chukwudumebi Otoma , the founding Chairman, One Need Properties Ltd, the trail-blazing Real Estate mogul par excellence 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.
According to Otoma, 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.
He said Inflation has soared from 11.25% in 2019 to over 28% in 2024, with construction inflation exceeding 300%. The devaluation of the naira—falling from ₦360/$1 in 2019 to nearly ₦1,500/$1 in 2024—has further compounded the crisis. Developers who relied on imported building materials now struggle with rising costs, making it difficult to complete projects on time and within budget.
The Asaba-based developer,described the struggle: “A project we planned at ₦250 million in 2023 now requires over ₦600 million to complete. Many developers are stuck between defaulting on delivery or absorbing losses that could collapse their businesses.
Otoma said that as inflation continues to rise, many buyers who initially invested in properties under construction are experiencing prolonged delays or requesting refunds. Developers unable to complete projects on time are forced to renegotiate terms or offer alternative financial arrangements. In Asaba and Abuja, a survey of major developers reveals that nearly 63% of construction projects initiated between 2019 and 2023 remain incomplete, with several abandoned altogether.
Despite the downturn, he believe that innovative solutions can help the real estate market stabilize. Some developers are exploring index-linked pricing models, where costs adjust with inflation, while others are shifting toward locally sourced building materials to reduce reliance on imports.
Otoma believes government intervention is crucial: “Without policy support—such as lower interest rates for real estate financing or incentives for local material production—the sector will continue to struggle. Developers need relief to complete ongoing projects and restore confidence in Nigeria’s property market.”
The Nigerian real estate sector, once a beacon of investment security, now faces its toughest period in recent history. Inflation, economic instability, and a declining naira have made property development a high-risk venture for both developers and homebuyers. While some companies are adapting to the challenges, the future of real estate investment in Nigeria will depend largely on economic recovery, financial innovation, and stronger regulatory frameworks.
For now, developers are bracing for what could be another challenging five years—unless drastic changes occur to stabilize the industry.