Global Real Estate Investment Market Shows Signs of Fragile Recovery | Gidi

After two years of contraction, the global real estate investment landscape may be turning a corner, as recent data suggests tentative signs of market stabilisation. According to the latest figures from the Global Real Estate Fund Index (GREFI), the sector delivered a second consecutive quarter of positive performance in Q4 2024, recording a total return of 0.77%.

Regionally, performance remained mixed. Europe led with a return of 1.21%, driven largely by core strategies regaining investor confidence. North America followed closely at 1.08%, buoyed by renewed capital inflows. Conversely, Asia Pacific reversed its previous gains, posting a negative return of -1.41%—a drop of 90 basis points from the previous quarter—though Australian funds within the region recorded a modest gain of 0.37%, up 54 basis points.

These movements come against a persistently volatile global backdrop marked by fragmented monetary policy, geopolitical tensions, and uncertain macroeconomic signals. In particular, the U.S. administration’s unpredictable tariff regime has added another layer of complexity to global capital flows, while continued unrest in Eastern Europe, instability across the Middle East, and tenuous relations between China and the West have all contributed to a cautious investment environment.

Still, investor sentiment appears to be shifting. Rather than remaining paralysed by uncertainty, investors are beginning to navigate an uneven and prolonged recovery. Real estate is once again being considered a stable store of value—offering inflation protection and resilience against equity market volatility.

Encouragingly, the market is seeing early signs of capital re-engagement, particularly within U.S. core funds, where redemption pressures have eased. Valuation recalibrations are ongoing, especially in Europe and North America, where price discovery is occurring more swiftly than in Asia Pacific. Key constraints remain: currency volatility, divergent interest rate environments, and valuation uncertainties continue to challenge deployment.

However, the asset class’s underlying strengths—predictable income, relative stability, and long-term alignment to structural trends—are drawing cautious but renewed investor interest.
If sustained, this emerging momentum may mark the beginning of a more deliberate and disciplined investment cycle.

Source: European Association for Investors in Non-Listed Real Estate Vehicles (INREV)

Tariff Tensions and the Global Investment Shift: Implications for Singapore’s Real Estate Market
The U.S. administration’s latest tariff announcement has triggered renewed volatility in global markets, compounding inflationary pressures and deepening uncertainty across trade and investment flows.

While Singapore maintains a low export tariff rate to the U.S., rising global material costs—particularly in steel and aluminium—may drive up local construction expenses, inflate property prices, and delay project timelines. These developments risk weakening investor appetite, especially in commercial and development segments.

However, this global instability may also present opportunity. As capital seeks safe and stable jurisdictions, Singapore could emerge as an investment sanctuary—backed by its governance strength, real estate resilience, and relatively balanced policy environment.

Still, the broader risk of a global slowdown looms large, threatening demand across residential, industrial, and commercial real estate segments. Supply chain disruptions could exacerbate delays, while falling consumer confidence may weigh heavily on housing activity.

Experts urge policymakers to adopt stabilisation measures to cushion market exposure and strengthen economic buffers. In parallel, diversification is becoming an essential strategy for investors—spreading exposure across asset types and regions to manage risk and ensure portfolio resilience.

Importantly, digital innovation is transforming how real estate is evaluated and accessed. As Keith Ong of RealVantage notes,
“A digital reset is dismantling traditional barriers to market entry… AI and data are now essential to navigating the future of real estate investment.”

As markets recalibrate, Singapore’s real estate ecosystem must stay agile—balancing caution with opportunity, and tradition with technology.

Source: Keith Ong, RealVantage

Africa Real Estate News
Africa’s Real Estate Market Poised to Hit $17.64 Trillion by 2025

Africa’s real estate market is projected to reach $17.64 trillion by 2025, with the residential segment alone valued at $14.87 trillion, according to real estate thought leader and CEO, Hakeem Ogunniran. Speaking at a Nigerian-British Chamber of Commerce Summit, Ogunniran highlighted that the continent’s housing and infrastructure gap presents one of the biggest untapped investment opportunities globally, with an anticipated compound annual growth rate of 5.58% from 2024 to 2029.

Nigeria, as one of the continent’s major economic engines, is expected to contribute significantly to this growth. The country’s real estate market is projected to be worth $2.61 trillion by 2025, with residential housing comprising $2.5 trillion of that total, underscoring the sector’s centrality to economic development and urban planning.

According to Ogunniran, the future of African real estate must be anchored on four key pillars:

• Liveability: Ensuring homes and communities are functional, safe, and integrated;
• Sustainability: Building for long-term environmental and economic balance;
• Resilience: Developing assets capable of withstanding external shocks;
• Affordability: Bridging the access gap across diverse income segments.

These pillars, he stressed, are not aspirational, but essential. They define the kind of real estate that will support Africa’s fast-growing urban population and align with global best practices. With increasing urban migration, population pressures, and shifts in generational housing expectations, real estate is once again being recognized as a critical driver of African prosperity, not only as a store of value but as infrastructure for inclusive growth.

Africa’s real estate sector stands at a critical juncture. The next five years will determine whether it evolves into a structured, innovative, and future-driven industry, or remains fragmented and reactive. According to emerging markets analyst SumiT Pathak, the most successful players in this space will not simply be those with capital, but those who possess foresight, agility, and a long-term commitment to value creation.

Already, a wave of transformation is underway, driven by the rise of property technology. PropTech is beginning to dismantle traditional inefficiencies, unlocking new possibilities across the value chain. Artificial intelligence is improving property management systems, automating tenant services and operational logistics. Blockchain is streamlining land registry processes, bringing transparency to ownership records and combating decades-old issues around title insecurity. Meanwhile, digital financing platforms are creating new pathways for local and diaspora investors, making it easier to access and fund real estate assets in fragmented markets.

Sustainability is no longer an afterthought—it is becoming a baseline requirement. Developers across the continent are integrating eco-conscious materials, solar-powered infrastructure, and water-saving technologies not only as a climate response but as a means to future-proof developments. The shift reflects a growing understanding that real estate must serve not only investors, but the environment and society at large.

Yet, the opportunity in African real estate goes far beyond technology or green building trends. At its core, this is about population dynamics, urban migration, infrastructure deficits, and the continent’s growing middle class. For serious investors willing to study local contexts, form strategic partnerships, and navigate the regulatory and economic nuances of emerging markets, Africa offers one of the last frontiers of scalable real estate growth.

But this is not a market for the passive. As Pathak aptly puts it, “This isn’t just about buying land and waiting for appreciation. It’s about being part of a continent’s transformation.” The real question is not whether Africa’s real estate market is viable. That has already been answered by the numbers and the need. The real question is: Are you ready to invest in Africa’s future?

 

Nigeria Real Estate News
Tax Reform Bill to Remove VAT from Real Estate Transactions, Oyedele Assures
Real estate transactions in Nigeria will be exempted from Value Added Tax (VAT) once the new Tax Reform Bill is passed into law, according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.

Speaking at the Building and Construction Industry Forum jointly organized by the Council of Registered Builders of Nigeria and Housing Development Advocacy Network, in Abuja, Oyedele explained that the reform is designed to reduce the cost of housing and building materials, particularly for low-and middle-income Nigerians. There will be no VAT on land, rent, or the sale of real estate. These have been controversial areas in the past, he said.

In addition to VAT relief, Oyedele stated that stamp duties on rental agreements below N10 million per month would also be removed, and capital gains tax would not apply to the sale of residential homes. The bill, he added, includes incentives for producers of building materials, especially non-metallic products like cement and bricks, classifying them under priority sectors to encourage local manufacturing.

The Tax Reform Bill also proposes improvements in land transactions, including simplified land titling processes and harmonisation of property-related taxes, long-standing bottlenecks in Nigeria’s real estate environment.
Oyedele emphasized that the bill has been misunderstood by many. According to him, the reform is not about raising taxes but about making life easier. It will reduce housing costs, encourage investment, and stimulate economic growth in the construction sector and the broader economy.

Also speaking at the event, Minister of Housing and Urban Development, Ahmed Dangiwa, represented by Temitope Gbemi, Director of Public Buildings, affirmed that the ministry fully supports the reforms. He noted that the ministry is working closely with tax authorities to ensure that real estate investment policies are clear, fair, and investor-friendly.
As Nigeria pushes for deeper housing reforms, this bill is being seen as a major policy shift, one that could lower entry barriers for homebuyers, reduce investor risk, and boost productivity across the real estate value chain.

Experts Call for Regulation of Nigeria’s Real Estate Sector Amid Growing Concerns
Real estate professionals have renewed calls for stronger regulation of Nigeria’s real estate sector, warning that the industry currently operates as an unregulated open market, vulnerable to abuse, low standards, and a lack of accountability.
The conversation came to the fore during the 45th anniversary celebration of Jide Taiwo & Co, Estate Surveyors and Valuers, which also marked the 75th birthday of the firm’s founder, Jide Taiwo.

Speaking at the event, the Managing Director of Jide Taiwo & Co, Moses Adeyemi, noted that the Nigerian real estate market is largely unregulated, allowing virtually anyone to operate as an agent without checks. “Every Dick, Tom and Harry comes into the real estate market. Retirees, housewives, anyone can act as an agent without being held accountable,” he said. Adeyemi emphasized that while valuation services are regulated through the Estate Surveyors and Valuers Registration Board of Nigeria, the broader sector, especially agency and development, lacks oversight. Seyi Aluko, General Manager of the firm’s Abuja branch, added that the lack of regulation puts investors at risk. He highlighted how some developers mismanage funds, abandon projects midway, or fail to meet delivery timelines, yet face no legal consequences.

Aluko stressed that while he wouldn’t call the industry outright fraudulent, it is built on minimal standards, with many developers unwilling to go the extra mile since there are no enforceable rules or consumer protections in place.
He also pointed to everyday rental practices as an example of the system’s failings. “Landlords often demand two years’ rent upfront. In more advanced markets, rent is paid monthly or weekly and is fully trackable. Here, there’s no tenant database, no enforcement, and recovering defaulted rent often requires a lengthy and expensive court process,” he said.

Oladapo Olaiya, a Fellow of the Nigerian Institution of Estate Surveyors and Valuers, echoed these sentiments, describing the current market as “a free-for-all” where unqualified actors dominate, often to the detriment of clients and the industry’s reputation.
All speakers agreed that urgent legislative reform is needed, with policies tailored to Nigeria’s unique context. They called on lawmakers to enact real estate-specific regulations that establish clear professional standards, enforce accountability, and protect both investors and home seekers.

Until then, Nigeria’s real estate sector remains promising, but poorly structured, leaving room for misuse, mismanagement, and missed opportunities.

Nigerians Abroad Drive Growth in Local Real Estate Market

The Nigerian diaspora is playing an increasingly important role in the country’s real estate sector, with more Nigerians abroad investing in homes and property back home. This growing trend is helping to reshape Nigeria’s housing landscape while also strengthening the emotional and economic ties between the diaspora and their homeland.

Housing remains a major symbol of success and stability in Nigeria and across Africa. For many, owning a home is not just a financial achievement; it is a cultural expectation and a mark of maturity. In many communities, land is offered to young men as a rite of passage, with peers often coming together to support the construction of homes. This deep-rooted tradition continues to influence the mindset of Nigerians in the diaspora, many of whom remain strongly connected to their roots.

According to the Nigerians in Diaspora Commission (NiDCOM), more than 17 million Nigerians live abroad. In 2023 alone, diaspora remittances totaled over $20.5 billion, with a significant portion flowing into real estate and construction. For many Nigerians overseas, owning property in Nigeria provides a sense of identity, security, and preparation for a possible return in the future.
Beyond sentiment, the Nigerian real estate market presents strong investment opportunities. With the country’s population projected to reach 223 million by the end of 2025 and urbanization expanding at over 4.2% annually, demand for housing is outpacing supply. Nigeria currently faces a housing deficit of more than 20 million units, creating significant room for real estate investment and development.

What was once considered an emerging segment is now becoming a powerful force. The Nigerian diaspora real estate market is growing rapidly, supported by increasing transparency, improved legal structures, and stronger collaboration between property developers and diaspora investors.

As more Nigerians abroad commit their resources to real estate back home, they are not only building wealth but also contributing meaningfully to national development. Their investments are helping to address the housing gap, create jobs, and stimulate economic activity across the construction and property sectors.

The message is clear: the diaspora is not just sending money, they are helping to build Nigeria, brick by brick.

Lagos Real Estate News
Lagos Cracks Down on Illegal Real Estate Fees and Rising Rents
The Lagos State Government has launched a new initiative to make housing more affordable by clamping down on illegal rental charges and encouraging fairer rent practices. In an official statement, the state declared that fees like “caution fees” and “inspection fees” are unlawful and must be discontinued.

According to Ganiu Lawal, Deputy Director of Public Affairs, such charges exploit tenants and damage the reputation of landlords and property managers. He urged real estate professionals to support the government’s efforts to reduce financial pressure on tenants and restore integrity to the rental process.

Key stakeholders in the property sector, including the Nigerian Institution of Estate Surveyors and Valuers (NIESV), the Real Estate Developers Association of Nigeria (REDAN), and the Association of Estate Agents in Nigeria, met with government officials to discuss the way forward. The meeting was co-chaired by the Commissioner for Housing, Moruf Akinderu-Fatai, and the Special Adviser to the Governor on Housing, Barakat Odunuga-Bakare.

At the meeting, Akinderu-Fatai expressed concern over the rising cost of rent and the burden it places on families. He emphasized the importance of monthly or quarterly rent payment options and encouraged all stakeholders to work towards a more transparent and accessible rental system.

Odunuga-Bakare referenced the Lagos State Tenancy Law of 2015, which caps total transaction charges at 10% of annual rent. She urged real estate agents and developers to comply with the law and support reforms that promote fairness in the housing market.
Real estate leaders at the meeting pledged their cooperation with the government. They also committed to joining advocacy campaigns and awareness programs aimed at educating both tenants and practitioners about proper conduct in the property sector.

The meeting ended with plans to hold a broader stakeholder forum involving legal experts, developers, agents, and tenant representatives. The goal is to create a more accountable, transparent, and affordable housing environment for all Lagos residents.

Lagos Government to Publish Names of Land Use Charge Defaulters from April 2025
The Lagos State Government has announced plans to begin publishing the names of individuals and organisations who have failed to pay their Land Use Charge (LUC), starting from April 2025.

The announcement was made by Mr. Tajudeen Mahmud, Permanent Secretary of the State Ministry of Finance. He explained that the decision aims to improve compliance, increase transparency, and boost internally generated revenue needed to fund public infrastructure and essential services.

According to Mahmud, despite repeated distribution of LUC bills and multiple reminders, many property owners have continued to default. “The Land Use Charge is essential for funding infrastructure. When people don’t pay, it becomes harder for the government to meet the needs of residents,” he said. He added that public naming will be the first step in a series of enforcement actions. Legal steps, including the receivership of properties, may follow the Land Use Charge Law of 2020.

The Ministry is urging all property owners to check their payment status and settle any outstanding charges promptly to avoid embarrassment and possible legal consequences. Those seeking help or clarification can visit the LUC Contact Centre at Block 12, The Secretariat, Alausa-Ikeja.

This move highlights the state government’s push for fiscal responsibility and equitable contribution to the development of Lagos. It also serves as a clear signal that non-compliance will no longer be overlooked.

Lagos-Calabar Coastal Highway to Be Completed by January 2026, Umahi

The Federal Government has confirmed that the Lagos-Calabar Coastal Highway will be completed by January 2026, according to Minister of Works, Dave Umahi.

Speaking during a project inspection on Wednesday, Umahi stated that the highway is already over 70% complete, and praised the commitment of the contractor, Hitech Construction Company, for continuing work despite not having received funding equivalent to the work done. “This shows they are committed to building the nation, not just chasing profit,” he said.

The Minister revealed that 20 kilometers of the highway, starting from Ahmadu Bello Way in Lagos, are expected to be completed by May 2025, and that the project may even exceed this milestone. He was accompanied during the inspection by representatives from the project’s financial partners, Dutch Bank and the Development Bank of Southern Africa, who expressed satisfaction with the pace, quality, and technical standards of the project.

Umahi also shared that land along the highway corridor has been secured for tourism, industrial zones, housing estates, and factory developments, positioning the road as a key enabler of national development.

On the technical side, he noted that while the required concrete thickness was 275 millimeters, the construction team has gone beyond this, using 280 millimeters, further assuring quality.

However, the Minister raised concerns about motorists merging from residential areas onto the highway, suggesting that more barriers or retaining walls would be needed to prevent safety issues. “This must be addressed before full completion,” he noted.
He commended the Department of Bridges and Roads and the Lagos Controller of Works for their oversight and contribution to the project’s progress.

Lagos Increases Housing Budget by 81% to Address Urban Growth and Housing Deficit

The Lagos State Government has allocated ₦101.6 billion to Housing and Community Amenities in its 2025 budget, marking a significant 81.69% increase from the ₦55.92 billion provided in 2024. This new allocation represents 3% of the total ₦3.366 trillion state budget, as detailed in the Lagos Economic Development Update (LEDU) 2025, released by the Ministry of Economic Planning and Budget.

The increase reflects the government’s intensified focus on affordable housing, urban renewal, and improved community infrastructure, a response to the pressures of rapid urbanisation and population growth in Nigeria’s most populous state.
The expanded budget is expected to fund several key initiatives, including the completion of ongoing housing projects, development of new estates, and the strengthening of public-private partnerships (PPPs).

One major example is the Odonla-Odogunyan Housing Estate, a PPP with Access Bank Plc, which will deliver 704 housing units across 44 blocks. The state’s 2024 budget funded notable housing projects, such as 444 units in Sangotedo Phase II, 420 units in Badagry, 136 units at Ibeshe Phase II, 270 two-bedroom flats in Egan-Igando, and a 144-unit mixed development at Greater Lagos LBIC/WGC Apartments in Amuwo Odofin.

To improve housing access, Lagos has also introduced initiatives such as the Rent-To-Own Program and the Lagos Home Ownership Mortgage Scheme (Lagos HOMS). These schemes allow eligible residents to pay a minimal deposit and spread payments over up to 10 years, with safeguards to ensure affordability and ownership integrity.

Overall, the increase in housing investment signals Lagos State’s long-term commitment to solving its housing deficit, expanding inclusive access to homeownership, and reshaping its urban environment to meet future demand.