Nigeria real estate delays persist as economic uncertainty and supply chain disruptions increase construction costs and hinder project timelines in 2025

Nigeria’s real estate sector continues to face significant project delays and cost overruns as economic uncertainty and persistent supply chain disruptions affect construction timelines, budgets, and overall productivity, according to a 2025 sector report by Ubosi Eleh & Co.

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The report highlighted that the devaluation of the naira and rising costs of construction materials, including cement, steel, and labour, have increased building expenses, discouraging both domestic and foreign investors from funding new developments.

“Economic uncertainties and supply chain disruptions led to project delays and cost overruns, impacting the delivery timelines of real estate developments,” the report stated.

Ubosi Eleh & Co. also noted that rising operational costs, such as utilities and maintenance, have forced landlords to increase rental rates, further straining tenant affordability in cities like Lagos and Abuja, where housing demand continues to grow.

Emeka Eleh, senior partner at Ubosi Eleh & Co., emphasised that government initiatives to promote affordable housing offer opportunities for developers, but financial and logistical challenges remain significant barriers.

“The volatile economic climate and increased uncertainty discouraged both domestic and foreign investors from investing in the real estate sector,” he said.

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The report underscores the urgent need for strategic policies to stabilise input costs, streamline supply chains, and foster investment to sustain growth in Nigeria’s real estate market.