Yes, even in an economic downturn, there are spaces for seasoned investors who understand that despite Nigeria’s current economic outlook, Nigeria’s real estate market is an enigma, and a well that keeps giving. The rapid pace of urbanization is transforming the landscape, with the United Nations projecting a staggering urban population of 250 million by 2050. A growing middle class is forecast to reach 134 million by 2030, creating a growing demand for modern amenities and a higher standard of living. All this to say – there will be always demand for housing, infrastructure and services around the industry. Your best bet – long term or short term – is to identify niche areas where you can get the most growth for your capital and the highest return possible.

Increasing demand in other cities besides Abuja and Lagos

The real estate market in Nigeria’s emerging cities is no longer defined by basic brick-and-mortar structures. Cities like Enugu, Kano, Port Harcourt, and Uyo are experiencing a surge in demand for modern, functional living spaces that cater to the evolving needs of a diverse young population. Young professionals are seeking trendy apartments with creative co-working spaces and fitness centers fitted with high-speed internet and excellent facility management services. New families are looking for safe neighborhoods with access to quality schools and recreational facilities. Businesses require modern office spaces that promote collaboration and innovation. To meet this demand, we see niches where our investors can earn high rental yields or turn huge profits as developers and/financiers.

Here are our top 4 niches for you to consider:

1. Smart apartments: build or purchase smart apartments and homes equipped with technologies like home automation systems, 24/7 power solutions and energy-efficient appliances for seamless connectivity and non-disruptive living.
2. Co-living spaces: build or purchase cozy and creative co-living spaces, with designs that provide a sense of personal space, ideal for young professionals seeking affordable, flexible living arrangements with a strong sense of community and shared living costs.
3. Vertical communities: build or purchase mixed-use high-rises that integrate residential units, office space, retail outlets, and recreational facilities within a single building, creating a self-contained urban environment.
4. Infrastructure financing: Infrastructure investments in roads, power (generation and distribution), Internet, clean energy, water, waste collection and disposal etc. not only promise high returns but also spur city growth and increase property values by up to 20% – making these spaces attractive for returns for investors looking to capitalize on the evolving real estate market.

Rental yields can range from 7-18%, depending on the location, facilities, technology available and usage – for example short-let apartments and co-working spaces have higher yield than traditional yearly rentals.

Final words…

Nigeria’s emerging cities and neighborhoods have both housing and infrastructure gaps that cannot be filled by the government but private investors – individuals or institutions. By investing in infrastructure and modern, creative and smart spaces, living conditions are improved through increased production, cleaner air and new jobs.

Want to invest and have no idea or knowledge of the Nigerian real estate market, send us an email today – hello@masterpiececapitalltd.com