Inflation, which reached multi-decade highs from 2023 to 2024, is beginning to ease. Yet, benchmark interest rates remain elevated as the Central Bank of Nigeria (CBN) maintains a tight monetary stance to stabilise the naira and anchor expectations. This dual dynamic reshapes the economics of property investment, financing, and development.

Our analysis suggests three key implications:

Residential demand remains resilient in middle-income and affordable segments, but financing barriers hinder growth in mortgage and developer pipelines. Commercial real estate faces pressure as corporates delay expansion and prioritise capital efficiency in a high-rate environment. Institutional investors recalibrate strategies, favouring yield-protective structures, joint ventures, and alternative financing as traditional debt becomes more expensive.