Stakeholders in the real estate sector have expressed hope that the sector will witness unprecedented growth, driven by infrastructure expansion nationwide, targeted capital deployment, a shift towards logistics and data-led assets, and deliberate residential development to mitigate existing gaps.
This comes as housing and construction leaders maintain that property markets typically grow in areas where roads, rail lines, utilities, and digital infrastructure are expanding.
The stakeholders made this observation last week in Lagos during the 2026 Nigeria Construction & Real Estate Market Outlook.
The event, themed ‘Infrastructure Development: A Catalyst for Real Estate, Construction & Economic Growth’, was organised by the Royal Institution of Chartered Surveyors Nigeria Group in collaboration with the Nigerian Institution of Surveyors and the Nigerian Institute of Quantity Surveyors.
The forum brought together regulators, investors and developers, who agreed that “infrastructure delivery will remain the single biggest anchor for property value growth in the country.”
The experts projected that construction activities would continue in 2026 despite macroeconomic pressures, arguing that projects would be more disciplined and less speculative, reflecting tighter financing conditions and a pre-election policy environment as the nation gears up for the 2027 general elections.
In his introductory remarks, the Chairman of the RICS Nigeria Group, Mr Tayo Odunsi, highlighted the interconnectedness of construction, real estate and economic development, describing three essentials for the sector: conviction, access to patient capital and project execution.
Presenting the 2026 market outlook report, the Chief Investment Officer of Panterra Real Estate Group, Ayo Ibaru, explained that infrastructure-led growth “would increasingly shape where capital flows within the property market”.
According to him, government infrastructure spending has a multiplier effect that unlocks private development, accelerates asset creation and deepens the services economy tied to real estate.
Ibaru argued that construction is the foundation upon which the broader property economy rests, noting that assets must first be built before they can generate value through leasing, facility management and financial services.
The housing sector, he insisted, remains one of the most powerful economic multipliers, touching banking, insurance, labour and supply chains simultaneously.
He said the outlook for 2026 suggests a pivot towards sectors tied to trade and digital infrastructure.
“Land development, organised retail and logistics parks are expected to attract increased institutional interest, while technology-driven real estate, particularly data centres, is projected to see accelerated investment as Nigeria’s digital economy expands,” Ibaru said.
He pointed out that infrastructure corridors would likely define new growth clusters, with investors positioning early around transport and utility upgrades.
“The residential property sector is forecast to remain active, though with a familiar skew. Luxury housing is expected to continue drawing capital, reflecting its resilience and strong buyer pool,” he said.
Speaking at the forum, Lagos State Governor Babajide Sanwo-Olu, represented by the State Commissioner for Housing, Moruf Akinderu-Fatai, said infrastructure planning must stay ahead of urban growth to attract sustained investment.
Sanwo-Olu noted that infrastructure is an architecture, not an accessory, adding that transport networks, planning reforms and institutional consistency are central to long-term property market confidence.
He stressed that the state will prioritise transit-orientated development, urban regeneration, logistics hubs and climate-resilient infrastructure as part of its 2026 strategy. He pledged continuity in land administration reforms and public-private delivery frameworks aimed at reducing project uncertainty and improving investor trust.
Meanwhile, during the panel session, developers opined that 2026 is expected to remain a volatile operating environment, with currency movements and construction costs continuing to test project feasibility.
They emphasised early cost planning, phased procurement and designing projects with volatility in mind, warning that poor planning, particularly in infrastructure-heavy developments, can erase margins before construction even begins.
For their part, institutional investors, especially pension-backed funds, signalled a preference for assets with predictable cash flows. Commercial and logistics real estate is viewed as more attractive than speculative residential projects, given their clearer income structures and lower due diligence complexity.
The forum highlighted the role of the Ministry of Finance-Incorporated Real Estate Investment Fund in improving liquidity within the housing market.
Industry leaders described the fund as an early-stage but important intervention designed to provide mortgage access and off-take guarantees that help developers raise financing.
While participants acknowledged operational teething issues, there was consensus that the framework could reshape housing delivery if underwriting standards and transparency are sustained.
Nigeria’s infrastructure gap, estimated to be far below global best-practice benchmarks, was described as both a constraint and a generational opportunity.
The RICS is a professional body and a global benchmark with over 150 years of experience. It has consistently defined what professionalism, integrity, and value creation mean in the built environment.
