Why Real Estate Should Be a Priority in National Economic Diversification Plans

ESV Rose Chinyere Okoro

As Nigeria continues to grapple with economic volatility, persistent revenue shortfalls, and the urgent need to reduce its overdependence on oil, one sector consistently overlooked in national planning is real estate. Yet, real estate remains one of the most reliable engines of economic stability and long-term prosperity across developed and emerging economies. If Nigeria is serious about sustainable diversification, the real estate and housing sector must move from the periphery to the centre of economic strategy.

Real estate has a unique multiplier effect that makes it indispensable for any diversified economy. Every investment in housing and infrastructure stimulates activity across multiple value chains construction, cement, steel, finance, transportation, architecture, technology, and professional services, among others. According to industry estimates, each ₦1 invested in real estate generates at least ₦5–₦7 in economic output. Countries such as the United States, China, and South Africa have built strong GDP contributions from the sector, recognising it as both a job creator and a wealth stabiliser.

Nigeria’s housing deficit, estimated at 17–22 million units, also presents an enormous opportunity. Rather than viewing the deficit solely as a social challenge, policymakers should treat it as one of the most strategic investment prospects in the nation’s history. A structured plan to deliver mass and affordable housing through mortgage reforms, transparent land administration, public-private partnerships, and incentives for developers could unlock trillions of naira in economic value and create millions of jobs. Construction alone absorbs both skilled and unskilled labour, making it a powerful tool for inclusive growth.

Moreover, real estate is one of the safest long-term investment avenues for Nigerians seeking financial security. In a country where inflation routinely erodes savings and where the capital market is unpredictable, property remains a hedge against economic shocks. Strengthening this sector attracts both domestic and foreign investors looking for stable returns. With proper regulation and better land titling systems, Nigeria could attract significant FDI into housing, retail spaces, industrial zones, and tourism-related real estate areas with massive untapped potential.

Industrialisation plans also depend on real estate. Manufacturing cannot thrive without functional industrial parks, logistics hubs, and adequate energy-supportive infrastructure. The ongoing shift towards a digital and service-based economy equally demands tech parks, innovation hubs, and data-centre infrastructure all of which sit squarely within the real estate ecosystem. Without real estate as a foundation, diversification ambitions will continue to wobble.

However, Nigeria must address the barriers stifling growth in the sector: high cost of land, bureaucratic bottlenecks in titling, uncoordinated urban planning, and the absence of a functional long-term mortgage system. Reforming these structural issues should be seen not as burdens but as prerequisites for economic transformation.

If government leaders truly intend to diversify the economy beyond oil, then real estate must be recognised as a strategic pillar, not an afterthought. Investing in real estate is not merely about buildings; it is about jobs, wealth creation, stability, and national development. No economy seeking resilience can afford to ignore the foundation upon which all growth literally stands.