September 2025 Real Estate Digest for Gidi Real Estate Investment Limited | Gidi

Africa

Sustainable placemaking discussions at the 2025 API Summit

At the Africa Property Investment (API) Summit held in Cape Town (19 September 2025), the “African Futures: Place Making & Future Living” panel tackled how the continent’s fast-growing population will shape real estate.

Moderator Tomi Olatunbode of design firm Spazio Ideale noted that Africa’s population will double by 2050, with 75 % of citizens under 35, and warned that limited mortgage access is forcing developers to adopt build-to-sell models instead of more affordable build-to-rent approaches.

Panelists emphasised that infrastructure can account for 30–40 % of development costs, so planning must consider access, mobility, and public spaces; failure to do so limits community sustainability.

The session urged developers and urban planners to create people-centric communities that integrate housing with schools, transport, and retail, rather than isolated residential estates.

Pension funds increase domestic investment in African real estate

African pension funds are increasingly shifting capital into domestic real estate. Niyi Adeleye of Standard Bank told African Business on 25 August 2025 that allocations by Nigerian pension funds to property grew 418 % between 2024 and 2025, illustrating a move away from dependence on foreign capital.

Standard Bank is supporting cross-border deals by structuring local currency facilities, while Botswana’s LLR Group is expanding its portfolio of commercial, industrial, and residential properties by raising funds on the Botswana Stock Exchange and developing long-term investment vehicles.

This shift reflects recognition that local pension funds provide stable, long-term financing and can drive socio-economic benefits.

Ghana diversifies mortgage options to tackle its housing deficit

With Ghana’s housing deficit estimated at 1.8 million units, Waylead’s 4 September 2025 report explains that the country has introduced several mortgage options to improve affordability.

Conventional mortgages remain the most common but require a 20–25% deposit and carry 14–35% interest. The National Housing and Mortgage Fund offers government-backed loans with subsidized interest rates, while employer-assisted mortgages allow employees to leverage corporate guarantees to secure better terms.

Diaspora mortgages provide tailored financing for Ghanaians abroad at rates of 7–12%, and pension-backed mortgages let contributors use part of their retirement savings as collateral. Developers and banks have also introduced structured payment plans such as rent-to-own schemes.

Nigeria

Youth-focused upgrades to the Renewed Hope Housing Programme

On 30 September 2025, Minister of State for Housing Abdullahi Yusuf Atah announced at a press briefing that Nigeria’s Renewed Hope Housing Programme will dedicate funding and training to young people.

The programme aims to deliver 50,000 affordable housing units, with ongoing projects in 19 states and the Federal Capital Territory.

The minister highlighted rent-to-own financing and diaspora-funded housing products as ways to make housing accessible to young Nigerians and called on local contractors to engage youth in construction trades. The government is also partnering with private developers and mortgage banks to accelerate delivery.

Advocacy group demands accountability for demolition-linked corruption

On 29 September 2025, the Housing Development Advocacy Network (HDAN) warned that rampant demolitions across Nigeria are often linked to officials’ complicity in illegal developments. The group said demolitions in Lagos, Abuja and Kano waste billions of naira and destroy homeowners’ investments, yet culprits within planning authorities rarely face sanctions.

HDAN called for independent probes, compensation for affected residents, and punitive measures for complicit officials. It also urged state governments to improve transparency in land allocation and enforce building regulations from the outset.

Public-private partnerships promoted as key to urban growth

During the Real Estate & Developers’ Stakeholders Forum in Abuja on 29 September 2025, speakers highlighted public-private partnerships (PPPs) as essential for sustainable urban growth. Prof. Timothy Nubi, founder of the Center for Housing and Sustainable Development, argued that Nigeria must deepen collaboration between government and developers to bridge its housing deficit.

Senator Aminu Tambuwal called for innovative PPP structures to attract private capital and professionalise real estate development. The forum, which assembled more than 1,000 stakeholders, agreed to produce policy recommendations for Lagos’ planning department and stressed the urgency of creating affordable housing.

 

Lagos

Minimum land size for estate development reduced to 5,000 m²

On 15 September 2025, Lagos State announced that developers now need only 5,000 m² of land, half the previous 10,000 m² requirement, to register new estates. Commissioner Oluyinka Olumide explained that rapid urbanization and scarce land prompted the change and argued that smaller parcel requirements will encourage flexible, mid-scale developments.

He added that the state will intensify enforcement against unregistered estates and ensure that developers obtain planning permits before commencing projects.

Lagos targets 40,000 building approvals annually

In a briefing on 25 September 2025, Lagos’ Commissioner for Physical Planning and Urban Development, Dr. Olumide Oluyinka, revealed that the state plans to issue 40,000 to 45,000 building permits per year, a significant increase from the 12,000 approvals granted in 2024. He likened planning permits to “birth certificates” that provide legal recognition and allow the state to plan infrastructure and utilities. The ministry launched a stakeholder engagement week to educate property owners on permit requirements and warned that structures built without permits risk demolition.

High-end rentals and sales surge in Lagos’ prime districts

A market review by real estate firm Northcourt, reported on 8 September 2025, showed a sharp rise in luxury housing costs in Lagos. Two-bedroom apartments in Old Ikoyi are renting for around ₦36 million a year, up from previous levels, while one-bedroom flats sell for about ₦180 million and three-bedroom units cost ₦700 million to ₦1.2 billion.

Penthouses were reportedly priced as high as ₦8 billion. The report attributes the boom to diaspora investors and high-net-worth individuals seeking secure assets. It also notes that Nigeria’s hospitality sector leads Sub-Saharan Africa with 7,281 hotel rooms in the pipeline, reinforcing demand for mixed-use and serviced apartment developments.

In summary, September 2025 brought a blend of visionary discussions, financing innovations, and market shifts across Africa’s property landscape.

The API Summit highlighted the need for integrated, people-centric planning as the continent braces for a doubling population, while Ghana rolled out diverse mortgage products to bridge its 1.8-million-unit housing. Additionally, local pension funds dramatically increased their real-estate allocations, signalling a move toward home-grown financing and reduced reliance on foreign Nigeria’s real estate sector saw renewed momentum toward inclusion and reform.

The federal government pledged to involve youth in its ambitious Renewed Hope Housing Programme, while advocacy groups demanded accountability for demolition-linked corruption and industry leaders pushed for public-private partnerships to address the housing.

Meanwhile, Lagos implemented policies aimed at easing development constraints and formalising construction. The state halved minimum land requirements for estates and targeted a dramatic rise in building approvals, yet soaring prime rents underscored persistent affordability challenges.