The contribution of Nigeria’s real estate sector to the economy surged to N41.3 trillion in 2024, making it the country’s third-largest economic sector, behind only trade and crop production.
This is according to the latest rebased GDP figures released by the National Bureau of Statistics (NBS).
The latest figure from NBS shows a significant upward revision of the sector’s economic value.
Before the rebasing, the sector was valued at N10.5 trillion in 2023. However, with improved methodologies and updated data capturing, the figure was revised to N30.7 trillion for the same year, representing a N20.2 trillion jump.
It further climbed to N41.3 trillion in 2024, underscoring the rapid expansion and growing influence of real estate in Nigeria’s economic structure.
The new data positions the real estate sector ahead of telecommunications (N23 trillion), construction (N13.8 trillion), and crude petroleum and natural gas (N13.1 trillion) as of 2023, highlighting its rising dominance in the non-oil economy.
According to NBS, the surge in value is driven by better valuation of assets and increased formalisation of property-related services such as rentals, broking, and land valuation, as well as the effects of rapid urbanisation across the country.
The Executive Secretary of the Association of Housing Corporations of Nigeria, Mr. Toye Eniola commended the development.
He told The PUNCH: ‘This is a cheering development that authenticates and justifies our demand and calls for more attention to the sector by our government. 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’.
In a similar vein, a real estate consultant, Jimi Peter, noted that the recent rebasing, which pushed Nigeria’s real estate sector GDP contribution to N41.3 trillion.
He said: ‘This rebasing should have been captured long before now. However, as is often the case with rebasing exercises, for the data to be accurate and reliable, it requires time and a thorough consideration of multiple factors. If you look at the real estate industry in Nigeria, it’s clear that the sector comprises numerous value chains. It generates employment at virtually every level. Before a house can even be built, land must be acquired, usually from an individual or family. Then, professionals such as architects are engaged to produce designs, followed by structural engineers who supervise the integrity of the building process. These engineers in turn employ builders, plumbers, electricians, and various artisans, all of whom play integral roles.
‘After construction, if you are a developer intending to sell, brokers and real estate agents, also known as realtors, become involved in marketing and selling the property. Once the sale is made, the new owner may choose to hold the property, resell it, or rent it out, again generating income for letting agents or facility managers. At every stage, someone is earning. In Nigeria, there’s a strong cultural value attached to land and homeownership. Owning property is widely seen as a benchmark of financial stability and success. Unlike in some advanced countries, where even wealthy individuals might choose to live in rented apartments, here in Nigeria, owning a home is almost a necessity. It’s a social marker. So, as long as people can afford to build or buy, they will pursue it.
‘This cultural drive, combined with Nigeria’s growing population, significantly increases the demand for housing. Shelter, alongside food, is a basic human need. As the population grows, the demand for shelter grows too, and this demand naturally stimulates the entire real estate ecosystem. The rising demand for housing fuels even greater demand for artisans, professionals, and various supply chain actors within the sector. This ripple effect means the real estate industry not only contributes significantly to GDP but also has a multiplying effect on employment and wealth creation. In the past, many may have underestimated the real estate sector’s direct impact on GDP. But now, it’s clear: the sector plays a substantial role in driving Nigeria’s economic growth’.
