The Impact of Urbanization on Nigeria’s Real Estate Market
October 15, 2024
One major contributor to the growth of Nigeria’s real estate market has to be the rapid urbanization in the country. This level of urbanization marked over the past couple of years has presented quite the positive influence, including challenges and opportunities for the real estate industry. The rate of urbanization has boosted the demand for housing, commercial spaces, and infrastructure, all equating to growth for the real estate industry.
The rate of urbanization in Nigeria has led to a high level of housing deficit currently, meaning that there is the need for an estimate of over 17 million housing units in the country to address the shortage that is set to arise. There is not only reduced housing; there is also a reduced supply of roads, water supply, and electricity—all growing demands that should be met. All of these mean that there is currently a lot of pressure and overcrowding on the existing infrastructure found in the country. And what this leads to, by extension, is the reduction of the standard of living and the development of poorer infrastructure in the country.
Real estate investors need to look into the numerous opportunities that have been created for them over time in these challenges that urbanization has posed. The increase in demand is only a challenge when the demand is not met, and what are investors doing if not developing properties and infrastructure to provide for the demand in the real estate industry? There is a lot of profit to make in meeting these demands and also an array of jobs to be created and provided, all of which stimulate economic activity in the country.
Aside from the opportunity that arises in providing affordable housing solutions, a good point to note is the opportunity that real estate investors are open to with foreign and local investors. And this is one that is not only beneficial to the real estate industry; it is of huge influence and impact to the country at large.
As much as every part of this country is already undergoing urbanization, certain secondary cities are now the hotspots for these real estate investors. These cities include Lagos, a city marked with high demand for luxury living and commercial spaces; Abuja, which is noted for its government-driven development and projects; Port Harcourt, highlighted for its oil and gas industry-driven growth; and Kano, with its growing demand for housing and retail spaces.
Urbanization has made the real estate industry very lucrative, presenting a lot of challenges to be solved and opportunities to combat them. Aside from the need for stakeholders to prioritize the development of innovative solutions, collaborations, and strategic planning in the real estate market, this is a great chance for more people to look into real estate investment and make the best out of it. Unsure of where to start? Pryme Point Real Estate Company is set with the best real estate consultants and agents to walk you through the process.