Nigeria’s Real Estate Sector Soars to N41.3 Trillion, Becomes Third Largest GDP Contributor

Nigeria’s real estate sector has experienced a monumental surge, with its valuation climbing to an impressive N41.3 trillion in 2024. This remarkable growth, confirmed by the latest rebased Gross Domestic Product (GDP) figures released by the National Bureau of Statistics (NBS) on Monday, July 28, 2025, positions real estate as the nation’s third-largest economic sector, trailing only trade and crop production.

The rebasement exercise by the NBS has unveiled a significant upward revision of the sector’s economic value. Previously estimated at N10.5 trillion in 2023, the sector’s value was revised to N30.7 trillion for the same year post-rebasing, before surging further to N41.3 trillion in 2024. This dramatic increase highlights the sector’s expanding influence and its pivotal role in diversifying Nigeria’s economy beyond its traditional reliance on oil and gas.

According to the NBS report, real estate now accounts for a substantial 10.78 percent of the country’s GDP. In the first quarter of 2025 alone, the sector demonstrated robust performance, growing nominally by 18.08 percent and contributing 17.46 percent to nominal GDP. This significant contribution underscores its capacity to generate wealth and employment across various value chains.

Industry experts and stakeholders have lauded the new figures, noting that they provide a more accurate reflection of the real estate sector’s immense contribution to the national economy. Toye Eniola, the Executive Secretary of the Association of Housing Corporations of Nigeria, described the development as “cheering” and called for increased government attention to the sector. “The housing sector has the capacity to lift Nigeria’s economy from its downward trend if appropriate and adequate support is given to both the demand and supply sides of the market,” Eniola stated.

Several factors are attributed to this substantial surge. The NBS highlighted improved methodologies and updated data capturing, which now better account for the informal segment of the real estate sector and provide a more accurate estimation of property values. Rapid urbanization across Nigeria, coupled with a significant housing deficit estimated at over 28 million units, continues to fuel incessant demand for residential and commercial properties.

As a real estate consultant, Jimi Peter, noted, “The reasons are not far-fetched. To a large extent, there is an estimated value of over 28 million housing deficits in Nigeria, so based on the calculations, we need to provide 700,000 new homes annually to address housing deficits we are currently experiencing.” He emphasized that this persistent demand, alongside a strong cultural drive for homeownership, constantly stimulates the entire real estate ecosystem, creating jobs for architects, engineers, builders, and various artisans.

The rebased figures indicate a healthy expansion and formalization of property-related services, including rentals, brokerage, and land valuation. While challenges such as rising construction costs and inflation persist, the sector’s foundational role in meeting basic human needs and its extensive backward and forward linkages ensure its continued buoyancy and growing importance to Nigeria’s economic stability and growth.