Nigeria’s real estate market continued to experience strong underlying demand in September 2026, particularly in the residential and rental segments, despite persistent affordability and supply-side challenges. Data from Nigeria Property Centre showed that between 17 and 27 September 2026, the platform recorded 319,743 property searches nationwide, of which 197,722 were rental searches, compared with only 44,528 live rental listings. This points to a significant mismatch between the number of households seeking rental accommodation and the properties available to meet that demand. In some locations, the imbalance was more pronounced; for instance, Ipaja recorded 44.7 searches per live rental listing, while about 19.5% of rental searches returned no listings, particularly among one-bedroom properties within the ₦2 million–₦3 million annual rent range. Raincode 1: SEPTEMBERRED

The supply constraints are being reinforced by the rising cost of property development. Higher prices for building materials, labour, energy, transportation and land, alongside elevated financing costs and exchange-rate pressures, have increased the cost of delivering new housing. Industry findings indicate that these pressures have encouraged developers to adopt phased construction, smaller unit sizes and more equity-driven financing structures, while some projects have faced delays or reduced viability. The pressure is particularly significant for affordable and middle-income housing, where developers have limited ability to pass the full increase in construction costs on to buyers and tenants without further weakening affordability.

Against this backdrop, the Federal Government has identified nearly 250,000 abandoned housing units nationwide as potential sources of additional housing supply. The proposed rehabilitation and possible transfer of some projects to state governments could help bring stalled housing assets back into productive use and reduce reliance on entirely new construction. However, implementation would require resolving issues around ownership, structural condition, infrastructure, rehabilitation costs and allocation.

The wider market therefore remained demand-driven but supply-constrained, with rental housing becoming increasingly important as high property prices and financing costs make homeownership more difficult for many households. While strong demand continues to support the residential market, the combination of rising development costs, limited affordable supply and growing rental demand is likely to remain a key factor influencing property prices, rents and development strategies across major Nigerian cities