Economic instability and ongoing supply chain disruptions are causing widespread delays in construction projects across Nigeria, affecting delivery timelines, budgets, and overall productivity in the real estate sector, according to the 2025 Nigeria Real Estate Report by Ubosi Eleh & Co.
The report notes that heightened economic uncertainty has dampened investor appetite, discouraging both local and foreign investment in property development. It attributes the slowdown to rising construction costs driven by the naira’s depreciation and sharp increases in the prices of key building inputs such as cement, steel and labour.
According to the report, these pressures have resulted in frequent project delays and cost overruns, making new developments more expensive and challenging to execute. It adds that developers are struggling to maintain delivery schedules amid fluctuating input prices and disruptions in the supply of construction materials.
Despite these challenges, the report highlights a growing demand for affordable housing, supported by government initiatives aimed at encouraging developers to participate in low-cost housing schemes. However, it warns that economic volatility continues to limit the sector’s ability to fully meet this demand.
Rising operational expenses are also reshaping the rental market. The report states that higher utility bills and maintenance costs have compelled landlords to increase rents, placing additional strain on tenants already grappling with affordability concerns.
Commenting on the findings, Emeka Eleh, senior partner at Ubosi Eleh & Co., said the combination of currency weakness and escalating input costs has significantly increased the cost of construction, making real estate projects more capital-intensive.
He added that economic uncertainty and supply chain challenges have not only delayed project completion but also reduced investor confidence in the sector. According to Eleh, these conditions have created a difficult operating environment for developers while pushing rental prices upward, further tightening housing affordability.
The report concludes that without greater economic stability and improved access to building materials, Nigeria’s real estate sector may continue to face delays, rising costs, and subdued investment in the near term.
