Diaspora investors, many of whom are US and UK-based, are the ones leading the luxury real estate market in Africa’s most populous nation, a condition that’s seen a two-bedroom rental apartment in Lagos rise to N36 million per annum.
According to a recent report by Northcourt Real Estate, average rental and sale prices of apartments have increased in the past 18 months as diaspora investors continue to find the country’s real estate market attractive.
“Two-bedroom luxury rentals in Lagos have reached as high as N36m per year, while one-bedroom luxury flats are available for purchase at A180m. Old Ikoyi 3-bedroom units average between N700 million and N1.2 billion, and 4-bedroom penthouses are priced at N2.1 billion with an upper limit asset asking at N8 billion (with a 2-room servants’ quarters),” the report stated.
“US and UK-based diaspora investors continue to be a key segment of the luxury buyer universe.”
Market trends suggest that the devaluation of the naira is luring foreign capital into the country’s real estate sector with the luxury market estimated to reach $4.34 trillion by 2029.
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Nigeria’s real estate market is a substantial and growing sector, with overall market value projected to reach $2.61 trillion by 2025 and an estimated $3.41 trillion by 2029, driven primarily by a strong demand for residential properties.
Despite economic challenges like inflation and rising construction costs, the market is expanding due to factors such as increasing urbanization, infrastructure development, and a persistent housing deficit, creating opportunities in both affordable and luxury segments across major cities and emerging secondary locations.
The high-end real estate market in Nigeria continues to attract diaspora investors, even though South African promoters are making some headway into Nigeria’s investor market, according to the report.
“The demand for properties in high-end locations is on the rise, with a focus on gated communities that provide advanced perimeter detection, sustainability-powered lighting and waste management systems, smart home technology, and expansive living spaces.”
For upper-middle-income buyers, according to the report, the priority is space, particularly if they have a family or desire ample room for comfort.
“Certain neighbourhoods are more expensive. This is usually due to proximity to reputable schools, efficient waste management, air quality, or an overall ambience.”