Rising costs and inflation hit Nigeria’s real estate sector hard
Stakeholders in Nigeria’s real estate sector say rising inflation and affordability issues in 2025 significantly affected investment, construction, and demand. Michael Egbekoya, CEO of McYouniverse Group, noted that national housing prices rose by 15 to 25 percent year-on-year, with even higher increases in prime locations. Rental prices also surged in 2025, often outpacing property sale prices. Experts like Olorunyomi Alatise and Babatunji Adegoke highlighted that affordability remained a central challenge throughout 2025.
TLDR
- Rising inflation and affordability problems in 2025 undermined real estate investment and demand.
- Michael Egbekoya reported price increases of 15–25% nationally, with luxury areas seeing up to 40% hikes.
- Rental prices jumped by 20–45% in major cities in 2025, driven by high demand and limited supply.
- Construction material costs soared in 2025, with cement, steel, and finishing materials up by 20–40%.
- Babatunji Adegoke and Olorunyomi Alatise said the sector struggled with supply shortages, rising costs, and inadequate affordable housing in 2025.
