Omotoyosi Ajayi, head of marketing and PR, Blue Square Limited, in this exclusive interview with BusinessDay spoke about the 2025 industry outlook for Nigeria’s real estate sector and how Blue Square Limited is bridging the market gap in the sector. She also spoke to why real estate is the smartest investment for young professionals in 2025. Excerpts by JOHN SALAU:
As a stakeholder in the Nigerian built environment, what is the 2025 industry outlook for the real estate market?
The Nigerian real estate market is poised for significant expansion, with projections indicating a market value of $2.61 trillion by 2025 despite economic uncertainties and declining purchasing power. This growth is driven by increasing urbanization, infrastructure development, and a rising demand for quality housing. The residential real estate segment remains the largest contributor, expected to reach $2.25 trillion, fueled by both affordable housing needs and a growing appetite for premium, well-designed living spaces. Additionally, secondary cities are emerging as prime investment destinations due to improved infrastructure and affordability, presenting opportunities for developers and investors alike. The high-end property segment is also witnessing a surge, as demand for luxury apartments in Lagos, Abuja, and Port Harcourt continues to rise among high-net-worth individuals and the diaspora market. Looking ahead, the real estate sector is set to maintain a compound annual growth rate (CAGR) of 6.91 percent from 2025 to 2029, pushing the market value to $3.41 trillion by the end of the decade. This positive trajectory underscores the industry’s resilience and long-term viability, making real estate a compelling investment choice. However, inflation, rising construction costs, and regulatory challenges will necessitate strategic planning, innovative financing solutions, and public-private partnerships to sustain momentum. Developers who focus on smart, sustainable, and well-located properties will be best positioned to capitalize on this growth, offering investors high returns and buyers’ quality living experiences in Nigeria’s rapidly evolving real estate landscape.
Why should a young professional in Nigeria consider real estate investment to investing in crypto, stocks, or ETFs?
We recognize that young professionals are more financially literate than ever, exploring different asset classes like stocks, ETFs, and crypto. However, the challenge with these assets is their high volatility and unpredictability. Real estate, in contrast, provides stability, long-term appreciation, and a hedge against inflation. Let’s put it into perspective: If you invested $10,000 in Bitcoin five years ago, you might have seen massive gains or significant losses depending on when you entered the market. But if you had invested the same amount in a well-located apartment in Lagos, the capital appreciation, rental income, and overall market demand would have made your investment far more secure and reliable. Lagos real estate, particularly in prime areas like Lekki Phase 1, Ikoyi, and Victoria Island, continues to show steady year-on-year appreciation. This is because land is a finite resource, and as urban expansion and infrastructure developments continue, property values rise naturally. Our Gazania Park development in Periwinkle Estate, Lekki Phase 1, is already seeing significant appreciation due to its strategic location, high-end facilities, and demand for luxury housing. While crypto and stocks fluctuate wildly, real estate offers consistent returns and a tangible asset that will always hold value.
Some young professionals consider real estate as an investment option for older investors or those with large families. How do you counter this mindset?
This is a common misconception. Real estate is not just for families or retirees—it is for anyone who wants to build sustainable wealth. A young professional in their 30s or 40s investing in property today is making a forward-thinking decision. Lagos rental prices continue to rise yearly, and if you don’t buy early, you’ll be paying higher rents without an appreciating asset to show for it. For instance, someone renting a two-bedroom apartment in Lekki for ₦7 million per year would have paid ₦35 million in five years, with no ownership rights. That same amount could be the initial deposit for a prime property at Gazania Park, allowing them to own an appreciating asset instead of just paying rent. Real estate is about planning. Even if you don’t have a family now, buying property today means that in a few years, you won’t need to worry about high rental costs or relocation uncertainties. You would have secured your home at a lower price, avoiding future market hikes.
How can young professionals get started in real estate without feeling overwhelmed with concerns about affordability?
The key is structured payment plans and co-ownership opportunities. At Blue Square, we understand that not everyone has the full capital upfront, so we offer flexible payment plans that allow buyers to spread payments over time. For example, at Gazania Park, Lekki Phase 1, investors can start with a 40 percent initial deposit and spread the balance over a convenient period. This makes high-value properties more accessible to young professionals. Another innovative option is co-ownership. Friends, siblings, or colleagues can come together to buy a property, splitting the costs and returns. This is a smart way to get into the real estate market without bearing the financial burden alone. In places like the UK and the US, co-ownership has been a game-changer for young professionals, and we believe this model will become more popular in Nigeria as awareness grows.
What would be your message to young professionals who earn in foreign currency and prefer to invest outside Nigeria; what are the prospects of investing in Lagos real estate?
We understand that many Nigerians in the diaspora hesitate to invest in real estate back home due to concerns about legal security, property management, and market stability. However, Lagos remains one of Africa’s top-performing real estate markets, and there are strong reasons why they should consider investing here: High Rental Yields: Lagos has one of the highest rental yields in Africa, particularly in locations like Ikoyi, Victoria Island, and Lekki. Short-term rental apartments (shortlets) can yield up to 15-20% annually, making them lucrative investment options. Secure Documentation: At Blue Square, all our properties come with proper titles (C of O, Deed of Assignment, Governor’s Consent, etc.), eliminating concerns about legal security. Professional Property Management: We also offer property management services for diaspora investors, so they can generate passive income without the stress of managing tenants. Many of our diaspora clients purchase apartments in Lagos and lease them as short-term or long-term rentals, earning income in both naira and USD. This is a smart way to grow wealth while maintaining financial ties to Nigeria.
Read also: Facility management: Key to real estate growth
How can interested investors get started with Blue Square’s real estate offerings?
We currently have prime investment opportunities, including Gazania Park in Periwinkle Estate, Lekki Phase 1, offering 1, 2, and 3-bedroom apartments starting from ₦140M. Investors can secure a unit with a 40 percent initial deposit and enjoy flexible payment plans.
What makes Blue Square developments stand out in the real estate market?
At Blue Square Limited, we pride ourselves on being architects of inspired living. Our developments go beyond just buildings—we create lifestyles. What makes our properties stand out? Meticulous Craftsmanship: We work with the best architects and contractors, ensuring our buildings stand the test of time. Prime Locations: We strategically select high-value locations like Ikoyi, Victoria Island, and Lekki Phase 1, ensuring strong market demand. Contemporary Amenities: Our developments feature state-of-the-art facilities, including spacious living areas, high-end kitchens, modern gyms, pools, concierge services, and more. Guaranteed Documentation: We prioritize transparency, ensuring every property is sold with complete and legal documentation. Our current project, Gazania Park in Periwinkle Estate, offers a collection of premium apartments designed for luxury, functionality, and high investment value.
Finally, tell us more about Blue Square’s vision as a player in Nigeria’s real estate sector?
At Blue Square Limited, we are more than just a property development company—we are architects of inspired living. Our ethos is built on quality, thoughtful design, and a deep commitment to delivering on promises. Since our inception, we have focused on developing contemporary, high-value residential spaces in prime locations like Lekki, Ikoyi, and Victoria Island, ensuring that our clients invest in properties that offer comfort and exceptional financial returns. Our vision is to build a brand synonymous with designing, developing, and maintaining stunning urban communities that redefine modern living. We are constantly innovating, introducing world-class designs, and elevating industry standards to provide homes that are not just functional but also aesthetically remarkable.
