Nigeria has a population of over 200 million people and a housing deficit of over 20 million units, estimated at 28 million units. And because of the ever-growing population of the people, Nigeria is said to be a prime investment population and market-ready for various types of investments like tech, financial services, and real estate investment.
However, to understand real estate investment in Nigeria, you must first understand that there is a peculiarity between Nigeria and its states compared to other countries. This also means that without understanding or appreciating the country itself, you may not be able to make a way as an investor there. This article will tell you the best states for real estate investment in Nigeria in 2025.
Real estate investment market in Nigeria in 2025
Real estate investment in Nigeria has been on the rise. The real estate market is estimated to grow to US$2.61 trillion, with residential real estate holding the largest projected price volume of US$2.25 trillion. This is a result of the rabid urbanization and growing demand for housing in cities like Lagos, Abuja, and Port Harcourt. This growth is at an estimated value of 4.3% annually. The significant influxes in these areas of the country have intensified the demand for residential and commercial properties. However, the supply in these areas is still lagging which speaks of the need for affordable housing solutions.
If you want to know the best state for real estate investment in Nigeria, you will want to keep reading.
The key factors influencing real estate investment in Nigeria are:
- The economic growth and stability
- Urbanization
- Rising demand for housing
- Government policies and environmental regulations
- Infrastructural development
- Technology advancements and innovations
- Foreign direct investment
Before we continue further on this article, you need to know the factors to consider when investing in real estate in Nigeria.
- Economic and political stability.
- Location.
- Infrastructure development (roads, electricity, water, internet).
- Government policies and land acquisition laws.
- Risk and returns
10 Best States for real estate investment in Nigeria in 2025
1. Lagos State
Lagos is said to be one of Nigeria’s economic hubs, making it one of the best states for real estate investment in Nigeria. With a population of over 20 million people, Lagos is known for its thriving culture, religion, and tradition, which makes it a location of vibrant cash flow. Investing in Lagos is more advantageous in that it has a strong economic foundation because of the presence of industries such as finance, technology, telecommunication, and entertainment. You can say it is a perfect and strategic location for global investments. In Lagos, especially because of its population and diverse economy, there is a high demand for housing and commercial spaces and a robust rental market. If you are ever looking to invest in Nigeria, you should look into starting in Lagos. Owning a property in this state will guarantee you a long-term income and wealth that may never run dry. The key investment locations in Lagos are: Lekki, Ikoyi, Victoria Island, Ikeja, Epe.
2. Abuja [FCT]
Abuja, just like Lagos, is one of the best states for real estate investment in Nigeria. It is the capital city; hence, it has a strong government presence, with an estimated population of about 4.21 million. Being the heart of the country, it is a strategic position for real estate investment and is an attractive investment option for local and international buyers. It has a high demand for residential properties; hence, it will be a good place for you to start. As the capital of the country, Abuja has strong government support for real estate; hence, it has rapid urban development, as even the government is committed to its development, which offers stability and long-term opportunities for investors. The key investment locations in Abuja are: Gwarinpa, Jabi, Wuse, Lugbe, and Apo.
3. Ogun State
The proximity of Ogun State to Lagos is what makes it one of the best states for real estate investment in Nigeria. Ogun state has an estimated population of about 7 million, and a high demand for housing at a low cost compared to some others like Lagos, Abuja, and Port Harcourt. There are so many places in Ogun state you can invest in. If you are looking for a strategic location to invest with a high yield in ROI, you should consider the Sagamu interchange and Lagos-Abeokuta espressway. Ogun State is ever-developing, and this also implies more companies that will in return bring in workers from different parts. This will bring about more demand for houses, with long-term appreciation and a need for infrastructural development. If you are looking to invest in Ogun State, the key investment locations are: Mowe, Ibafo, Abeokuta, and Agbara.
4. Rivers State
Rivers State’s capital, Port Harcourt, is well known as an oil and gas hub. With an estimated population of 7.23 million. Because of the high production of oil and gas in the state, it is the centre of international attention for industrial buildings, hence producing more workers. This in turn produces a high demand for housing and makes it one of the best states for real estate investment in Nigeria. Investing in Port Harcourt, Rivers State, also means your investment will have a strong expatriate and corporate rental demand. You are sure to reap high returns. The key investment locations are: GRA, Trans-Amadi, Elelenwo, Choba.
5. Oyo State
This is an emerging real estate market with affordable lands and high ROI. It is a fast-developing urban centre, making it one of the best states to invest in. Because it is fast developing, you are sure of getting a high demand for both residential and commercial spaces. The key locations are: Bodija, Oluyole, Moniya, and Akobo.
6. Anambra State
This state is identified as the commercial and industrial hub in the southwest. With an estimated population of about 6.35 million, the increasing infrastructural projects in this state are known to boost property values. Cities like Akwa and Onitsha are known for their booming retail and trade-driven economies. It is a place to look out for. So, if you are looking to invest in Anambra State, these are the key locations you should look out for: Awka, Nnewi, and Onitsha.
7. Enugu State
One of the reasons why Enugu State is one of the best states for investing in real estate is because of the growing urban centre it has, with it being a centre for tourists, making it a state with a high business potential. Compared to Lagos and Abuja, the properties here are relatively affordable.
8. Kano State
Kano state is said to be the largest commercial centre in northern Nigeria. With a population of about 16.2 million, it has a growing demand for modern houses and commercial spaces. If you are looking to invest in Kano State, you should try investing in warehouses, retail, and residential properties, and you should know properties here have a high capital potential appreciation. The key investment locations are: Nassarawa, Tarauni, and Gwarzo Road.
9. Delta State
Delta State is known to be an oil-rich region with a strong interest in business, which makes it one of the best states for real estate investment in Nigeria. With an estimated population of about 5.8 million, they are sure to attract both local and international workers. This also allows for an increase in government-backed infrastructure projects, paving the way for investment in real estate to thrive. Warri and Asaba are known to be the key locations for investment; however, you can also invest in Effurun.
10. Akwa Ibom State
Akwa Ibom is well known for its tourist appeal, and its capital is one of Nigeria’s cleanest and fastest-growing states. With a population of about 7.3 million, real estate in Akwa Ibom is fast growing and is a gold mine for investors. Coupled with this, the government investment in infrastructure has also boosted the demand for housing, and this makes it one of the best states for real estate investments in Nigeria. The key investment locations in Akwa Ibom are: Uyo, Eket, and Ikot Ekpene.
Conclusion
Having discussed the states in which you can begin as an investor in Nigeria, it is important to know that before you decide to buy any property in any of the states, you do thorough due diligence. You also need to look into the market values of the property you want to buy. Because of the booming economy, Abuja, Lagos, and Port Harcourt are the best states for real estate investment in Nigeria; however, because of the increase in demand for these places and high competition, we have carefully listed out other states for you to consider.