Nigeria’s economic landscape has shifted dramatically: real estate overtakes oil and gas third in the GDP sector rankings, according to newly rebased data released in early 2025.
Crop production now leads the pack, followed by trade, with real estate firmly in third place. Telecoms ranks fourth, while crude oil and natural gas fell to fifth.
In Q3 2024, real estate services grew by 46.52% year-on-year—far outpacing other sectors—and contributed 5.43% to real GDP, just slightly down from 5.58% in the corresponding quarter of 2023.
This shift reflects more than just rebasing—it’s underpinned by Nigeria’s rapid urbanization, burgeoning demand for housing, and a growing middle class. Experts estimate a housing deficit of approximately 28 million units, requiring 700,000 new homes annually. The real estate market is projected to reach $2.61 trillion by 2025, with continuous growth expected.
Industry leaders attribute this structural reordering to the 2025 GDP rebasing exercise, which adopted 2019 as the base year and expanded coverage of previously undercounted sectors like tracing, digital economy, pension funds, and informal housing markets.
Developers, analysts, and policymakers say the real estate sector’s rise was no surprise. Government investments, private-sector involvement, and demographic dynamics have all accelerated its growth.
Key takeaways:
- Real estate now ranks third in Nigeria’s economy
- Sector growth soared with a 46.5% increase in nominal value
- Structural shifts in GDP profiling reflect economic diversification
- Demand driven by housing gap, urbanization, and rising middle-class incomes
- Real estate projected to grow to $3.41 trillion by 2029
This milestone cements real estate’s role as a vital pillar of Nigeria’s economy—outperforming oil at its peak and highlighting the country’s diversification into sustainable, non-oil-driven growth.
