Diaspora Buyers Driving Nigeria’s Real Estate Surge — IFT Realty CEO

Nigerians in the diaspora are significantly boosting real estate development across the country, according to Remi Oshinkalu, CEO of IFT Realty. He attributes this growth to a combination of emotional connection to home and the economic advantage of a weaker naira, which has made property investment more affordable for those earning in foreign currency.

Speaking at the launch of Shalom Park Estate condominiums in Ibeju-Lekki, Oshinkalu said, “Today, if you look at most estates, the biggest investors are Nigerians living abroad. For someone overseas, $10,000 translates to about ₦16 million and with flexible payment plans, many are able to commit.”

He described the trend as a "game changer," noting that diaspora investment is opening up new development frontiers that were previously unattractive to local investors.

Recent World Bank data supports this shift, revealing that remittances to Nigeria hit a five-year high in 2024, rising nine percent to $20.98 billion. With the naira having depreciated by over 40 percent against the dollar, real estate has become a strategic entry point for diaspora capital.

For developers like IFT Realty, these foreign-backed purchases provide a lifeline. They help bridge financing gaps and absorb the impact of rising construction costs and high interest rates following the Central Bank of Nigeria’s tight monetary policies.

However, the influx of dollar-driven buyers presents a double-edged sword. While it injects much-needed capital into the sector, it may further widen the affordability gap in urban housing markets, where over 28 million homes are still needed.

Oshinkalu acknowledged government efforts to revive mortgage schemes but called for a more aggressive approach. “Single-digit mortgage rates and large-scale funding can transform Nigeria’s housing landscape and revive the broader economy,” he said.

He also pointed to inflation and severe infrastructure deficits as the key factors driving up property prices. Developers, he explained, now factor these into their cost structures.

To address housing inequality, Oshinkalu urged policymakers to create frameworks that attract credible private developers to build affordable housing. “Government should acquire land, work with reputable developers, involve quantity surveyors to set realistic costs, and provide a clear markup. No one builds for free,” he stressed.

As Nigeria’s real estate market continues to expand, driven largely by diaspora funds, industry stakeholders are watching closely to see whether this momentum can be harnessed to address the country’s longstanding housing crisis.