The real estate sector in 2025 promises exciting opportunities, but those opportunities will come with a mix of challenges, a new report has said. The report, which is in its 9th edition, was compiled by Ubosi Eleh & Co, a frontline estate surveying and valuation firm.
The report notes that despite the challenges of 2024, which it described as “a year of economic recalibration,” 2025 is quite positive in its outlook, pointing out that some sub-sectors are already thriving going into the year.
“Warehousing continues to thrive, driven by logistics while residential real estate is adapting to shifting demographics. This projection is predicated on the continued and increasing Internet penetration and growth of e-commerce,” the report notes.
Similarly, commercial spaces are evolving in response to changing work patterns and the retail sector is adjusting to new consumer behaviours. The report is of the view that with strategic planning, investors could navigate these shifts for sustainable profitability.
The hospitality sector, according to the report, is experiencing a strong growth, marked by a surge in luxury accommodation, an expanding mid-tier and budget segment and innovative serviced apartment offerings. It believes that the entry of international hotel chains, coupled with domestic tourism and business travel, creates substantial opportunities for investors and operators.
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It hopes that the strategic diversification of accommodation types and the integration of technology are two factors that will drive long term growth and transformation in the industry.
The report recalls that while households and businesses struggled under microeconomic realities in 2024, the real estate sector found itself at crossroad, noting that, “2024 marked a transformative period in Nigeria’s political economy as President Bola Tinubu embarked on bold reforms to tackle deep-seated structural challenges.”
It described the year as “one defined by resilience, adaptation and the pursuit of opportunities and daunting challenges,” pointing out that while the cost of borrowing stifled capital formation and deterred investments, the real estate market bore the brunt of falling purchasing power and rising construction costs.
In particular, the report pointed out further that building materials, which are largely imported, became more expensive due to exchange rate volatility while the market’s long term potential remained visible, driven by robust demographic trends, rapid urbanisation and the country’s enduring housing deficit.
