Investor calls for shift to high-yield assets
…reality firm flags market changes By Victoria Amadi Changing investor behaviour and rising economic pressures are reshaping Nigeria’s real estate sector, with a growing preference for income-generating properties over long-term land
...reality firm flags market changes
By Victoria Amadi
Changing investor behaviour and rising economic pressures are reshaping Nigeria’s real estate sector, with a growing preference for income-generating properties over long-term land speculation, a real estate firm has said.
The Chief Executive Officer of 1159 Realty, Comfort Olugbami noted that the shift, driven by inflation and fluctuating interest rates, has compelled developers to rethink project design and investment strategies.
She spoke at the 5th year anniversary of the 1159 Realty in Lagos, “Today’s investors are far more return-focused. They are no longer interested in simply buying property and holding it indefinitely. They want assets that generate measurable income and yield.”
She explained that the trend has influenced the firm’s focus on rental-driven developments, including student housing and professionally managed residential spaces.
The company also highlighted broader structural changes within the industry, noting that developers are increasingly expanding beyond brokerage into construction and full-scale development to better manage costs and delivery timelines.
According to the CEO, “the biggest shift for us has been diversification and building more control within the value chain,” a move aimed at cushioning the impact of inflation and volatile financing conditions.
She identified sustainability as an emerging pressure point, warning that climate change is already influencing building patterns and design considerations in Nigeria.
“The distinction between dry and rainy seasons is becoming less predictable. Developers must begin designing buildings that are resilient, efficient and environmentally responsible,” She said.
The firm added that integrating solar energy and efficient building systems could help reduce long-term operational costs, despite high upfront construction expenses.
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Industry competition, particularly in Lagos, was also cited as a major challenge, with the CEO describing the market as one of the most complex and competitive in the country.
Despite the challenges, the company said it plans to re-enter the Lagos market, with construction expected to commence in the last quarter of 2026.
On access to housing investment, the firm disclosed growing participation from younger investors, marking a shift from the sector’s traditionally capital-intensive nature.
It revealed that over 1,000 young investors have been onboarded through flexible payment structures designed to lower entry barriers to property ownership.
While maintaining that Africa’s real estate market remains attractive despite current economic headwinds, the CEO urged investors to adopt a cautious, long-term approach, stressing the importance of due diligence and credible partnerships in navigating the evolving landscape.
