In a significant shift in the economic landscape of Nigeria, real estate has now become the third-largest contributor to the nation’s Gross Domestic Product (GDP), surpassing the oil and gas sector, according to preliminary figures from the ongoing GDP and CPI rebasing exercise conducted by the National Bureau of Statistics (NBS).
This development places real estate behind only crop production and trade, marking a pivotal moment for Nigeria’s economy, traditionally dominated by oil revenues. The real estate sector has witnessed a nominal growth of 46.52% in the third quarter of 2024, a stark contrast to the 2.82% recorded for the same period in the previous year. On a quarter-on-quarter basis, the sector grew by 16.15%, contributing 5.43% to the real GDP, which is notably higher than the 5.58% it contributed in the third quarter of 2023.
The rise of real estate to this prominent position can be attributed to several factors. Rapid urbanization, an expanding middle class, and increased foreign direct investment (FDI) into the sector have all played crucial roles. With Nigeria’s housing deficit estimated at around 28 million units, there’s an ever-growing demand for residential and commercial properties, which has spurred significant development activities across major cities like Lagos, Abuja, and Port Harcourt.
Experts attribute this growth to the sector’s resilience and its capacity to generate employment, stimulate economic activity through construction, and facilitate wealth creation. “Real estate has always been a goldmine, but now, with the right policies and investments, it’s becoming the backbone of our economic recovery and growth,” stated an industry analyst in Lagos.
The real estate market in Nigeria is projected to reach a market volume of $3.41 trillion by 2029, growing at a compound annual growth rate (CAGR) of 6.91% from 2025 to 2029. This projection underscores the sector’s potential not just for immediate economic impact but for sustained growth over the next decade.
The shift has sparked discussions on social media platforms like X, where users have expressed mixed feelings. Some celebrate the diversification away from oil dependency, while others caution about the challenges such as regulatory hurdles, high construction costs, and the need for more inclusive housing policies. “It’s a proud moment for Nigeria, showing we’re not just about oil anymore. But we must ensure this growth benefits all Nigerians,” one user posted.
The government’s role in this transition cannot be understated. Initiatives aimed at public-private partnerships for infrastructure and housing developments, along with reforms to ease doing business in the sector, have been pivotal. Moreover, the introduction of PropTech (Property Technology) solutions has modernized transactions, making the market more transparent and accessible.
However, this rise also comes with its set of challenges, including the need for better urban planning, addressing the housing affordability gap, and ensuring sustainable development practices are at the forefront. The government and industry stakeholders are now faced with the task of capitalizing on this momentum to further enhance the sector’s contribution to the GDP while tackling these issues.
As Nigeria redefines its economic identity, the real estate sector’s ascent to the third-largest contributor to GDP is not just a statistic but a narrative of transformation, resilience, and the potential for a more diversified and robust economy.
- Tags: Nigeria
