Real Estate Accounts for 13% of Nigeria’s GDP — Report

Realty Accounts for 13 % of Nigeria’s GDP– Report

Nigeria’s property sector contributed 13.10 percent to genuine Gross Domestic Product (GDP) in Q1 2026, while the building sector grew by 6.38 percent year-on-year, according to Knight Frank’s H1 2026 Lagos Market Update launched on Monday.

The report stated the residential or commercial property market’s efficiency is being driven by increasing domestic leas, continual facilities financial investment, and more selective need from occupiers throughout Lagos, Abuja and Port Harcourt.

The larger economy reveals indications of stabilisation, with heading inflation alleviating to 15.91 percent in June 2026 from 25.29 percent a year previously. Knight Frank kept in mind, nevertheless, that high advancement expenses and price restrictions continue to affect financial investment choices and occupier methods.

In Lagos, strong sector contribution comes amidst a severe scarcity of official real estate, pressing leas greatly greater. Prime locations such as Ikoyi, Victoria Island, Banana Island and Lekki Phase 1 have actually seen leas more than double given that 2023, requiring numerous renters to move need towards more budget friendly choices on the mainland, consisting of studios, mini-flats and two-bedroom homes.

Transportation facilities, consisting of rail growths and upgrades along the Lekki-Epe passage, is extending the home footprint to emerging rural areas such as Ajah, Sangotedo and Ibeju-Lekki.

Business home efficiency stays selective. In Lagos, Grade A workplace leas have actually stabilised at about $55 per square metre monthly, with property owners using fit-out contributions, concessions and versatile leases to keep renters. Industrial Grade An area in Alaro City and the Lagos Free Zone is renting at $4 to $6.5 per square metre monthly, while retail need is manipulated towards benefit and area shopping formats.

In Abuja, districts such as Guzape I and II taped capital worth development of 20 to 30 percent. Saturated prime zones like Maitama, Asokoro and Wuse 2 are seeing city regrowth driven by diaspora financial investment and need for modern-day workplaces, which pressed industrial leas up by over 10 percent in H1.

In Port Harcourt, the oil and gas sector continues to underpin need for modern-day real estate, business centers and commercial centers, while older industrial properties deal with pressure to recondition.

Discussing the findings, Senior Partner and CEO of Knight Frank Nigeria, Frank Okosun, stated: “The market is revealing strength, however efficiency is significantly area- and asset-specific. Facilities can open brand-new chances, yet financiers and designers should likewise react to price pressures, running expenses and plainly showed need.”

Lead Research Analyst, Daniel Fabi, included: “Across the 3 cities, occupiers are prioritising worth and performance. Quality workplaces and well-located commercial properties stay appropriate, while domestic need is splitting in between prime homes and more budget-friendly choices.”

Head of Marketing and Corporate Communications, Lanre Sonubi, stated the report offers evidence-led insights to assist market individuals examine danger and position for development.