Lessons for investors as market shifts to formal, tech-enabled space

 

 

The second half of the year is here, and it comes with some lessons for players in the real estate market which, inexorably, is shifting to a formal and tech-enabled space, not only in Nigeria but also across Africa.

It therefore behoves everyone building in Africa’s real estate market not to view July, the starting point of the second half of the year, as just a new month, but as a checkpoint.

Ayo Ibaru, Chief Investment Officer at Panterra Real Estate Group, notes that Africa’s real estate opportunity is structural, explaining that a shift to a formal, tech-enabled market is underway, even if it’s uneven.

According to him, the firms that lead won’t just build more but will also integrate the whole chain: investment, research, asset management, and supply.

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Ibaru revealed that the first half of 2026 left behind four lessons investors and sundry stakeholders in the real estate space should carry into the next six months. These are:

The gap is widening

Institutional-grade assets pulled ahead in the first half. Clean title. Transparent procurement. ESG-aligned builds. Those projects got stronger capital, better tenants, and better performance. As the market matures, that advantage won’t shrink. It will get bigger in the second half.

Green building has tipped

This isn’t theory anymore. EDGE-certified projects in Lagos are showing 15-25% lower running costs for tenants. Banks moved from “ESG is nice” to “ESG is required.” We now have GBCN’s decarbonisation roadmap, CPG for local certification, and Nigeria’s Paris Agreement commitments. The foundation is set. H2 is when this moves from commercial into residential.

Materials are still the problem

Cement. Steel. Core inputs. Prices kept climbing through H1. Supply is still concentrated with a few big manufacturers. So cost pressure is real. Procurement is no longer just operations. It’s a strategy. In H2, when and how you buy will impact your project as much as what you build.

Capital is picky, not absent

Institutional money is in the market. But it’s selective. It wants clear governance. ESG performance. Pro asset management. Transparent operations. Investors aren’t waiting for a perfect market. They’re backing partners who can execute well in an imperfect one.