Real estate sector surges to N41.3tn, boosts economy

Stakeholders have lauded Nigeria’s recent Gross Domestic Product (GDP) rebasing, which has significantly elevated the real estate sector’s valuation to N41.3 trillion, underscoring its expanding role in the country’s economic landscape.

According to the newly released rebased GDP data from the National Bureau of Statistics (NBS), Nigeria’s real estate sector has emerged as the third-largest contributor to the national economy, trailing only trade and crop production.

The updated figures show a dramatic recalibration of the sector’s economic value. Prior to the rebasing, real estate was valued at N10.5 trillion in 2023. However, with the application of improved methodologies and enhanced data capture techniques, the NBS revised the 2023 valuation upward to N30.7 trillion, representing a remarkable N20.2 trillion increase. The sector’s value further surged to N41.3 trillion in 2024, confirming its rapid growth and increasing influence.

The real estate industry now outpaces key sectors such as telecommunications (N23tn), construction (N13.8tn), and crude petroleum and natural gas (N13.1tn) (2023 figures), positioning it as a dominant force in Nigeria’s non-oil economy.

According to the NBS, the surge in valuation reflects more accurate asset assessments, increased formalisation of property-related services—including rentals, brokerage, and land valuation—and the continued effects of rapid urbanisation across Nigeria.

Reacting to the development, Executive Secretary of the Association of Housing Corporations of Nigeria (AHCN), Toye Eniola, described it as a welcome development that validates long-standing calls for greater government attention to the housing sector.

“This is a cheering development that authenticates and justifies our demand and calls for more attention to the sector by our government,” Eniola stated. “The housing sector has the capacity to lift Nigeria’s economy from its downward trend if appropriate and adequate support is given to both the demand and supply sides of the market.”

Similarly, real estate consultant, Jimi Peter, highlighted the significance of the rebasing, which elevated the sector’s GDP contribution to N41.3 trillion.

“This rebasing should have been captured long before now. However, as is often the case with rebasing exercises, for the data to be accurate and reliable, it requires time and a thorough consideration of multiple factors,” Peter said.

He elaborated on the real estate value chain, noting its far-reaching impact on employment and economic activity.

“If you look at the real estate industry in Nigeria, it’s clear that the sector comprises numerous value chains. It generates employment at virtually every level. Before a house can even be built, land must be acquired, usually from an individual or family. Then, professionals such as architects are engaged to produce designs, followed by structural engineers who supervise the integrity of the building process. These engineers, in turn, employ builders, plumbers, electricians, and various artisans, all of whom play integral roles,” he explained.

“After construction, if you are a developer intending to sell, brokers and real estate agents—also known as realtors—become involved in marketing and selling the property. Once the sale is made, the new owner may choose to hold the property, resell it, or rent it out, again generating income for letting agents or facility managers. At every stage, someone is earning.”

Peter also pointed out the cultural significance of land and homeownership in Nigeria.

“In Nigeria, there’s a strong cultural value attached to land and homeownership. Owning property is widely seen as a benchmark of financial stability and success. Unlike in some advanced countries where even wealthy individuals might choose to live in rented apartments, here in Nigeria, owning a home is almost a necessity. It’s a social marker. So, as long as people can afford to build or buy, they will pursue it.”

He concluded that the combined forces of population growth and cultural preferences continue to fuel demand for housing, thereby expanding the real estate sector’s impact.

“Shelter, alongside food, is a basic human need. As the population grows, the demand for shelter grows too, and this demand naturally stimulates the entire real estate ecosystem. The rising demand for housing fuels even greater demand for artisans, professionals, and various supply chain actors within the sector. This ripple effect means the real estate industry not only contributes significantly to GDP but also has a multiplying effect on employment and wealth creation.

“In the past, many may have underestimated the real estate sector’s direct impact on GDP. But now, it’s clear: the sector plays a substantial role in driving Nigeria’s economic growth.”