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This is the maiden edition of our annual Nigeria Property Price Index Report and we focused on 2022 with some references to 2021. Our vision is to be the foremost data source for real estate market prices and information across all asset classes in Nigeria.
Click here to download Nigeria Property Price Index Report
Report Summary
Through the years – 2021 and 2022, economic indices in Nigeria were volatile. Inflation and exchange rate fluctuations impacted investment decisions and operations of key players within the Nigerian real estate and construction industry. Despite this, the growing adoption of technology in real estate and construction across the continent, as evidenced by increasing prop-tech funding points to a promising destination for the sector in 2023.
Analysis of the land and buildings (residential and short-let) submarkets across 6 States in Nigeria showed record-level investment in emerging growth regions across the country. The Ibeju-Lekki/Epe corridor in Lagos, Lugbe in Abuja, and Moniya in Ibadan, particularly, showed the highest spike in investment activity.
Evidently, the land market, and land assets across the country, especially in locations like Lagos and FCT, Abuja, have proved resilient.
Within the residential submarket, inflation (21.5%) alongside the Monetary Policy Rate (17%) is expected to affect the demand and supply side of the residential submarket in 2023. On the demand side, rising property prices and fit-out costs with a major impact on rental decisions, discouraging renters from taking new leases but rather retaining current agreements due to the higher variation of new rates. The increasing cost of borrowing, on the other hand, affects supply, particularly among developers who need debt financing to execute projects.
The year 2022 in general, was not particularly exciting for the short-let apartment market across Nigeria’s key cities. Electricity tariff and diesel prices more than doubled in the course of the year, and have remained very high, making it extremely tough for most short-let operators to survive profitably. In terms of pricing, the short-let, land, and residential markets across Nigeria saw a significant increase. This Price Index Report explores property price changes in six states, across the geo-political regions in Nigeria, excluding North-Eastern Nigeria. It also captures insightful discussions on some of the most pressing topics within the Nigerian Real estate and Proptech industry, with outlook opinions by industry experts.