FG targets Saudi real estate investors with Renewed Hope Cities, others

The federal government of Nigeria, at the Saudi Arabia real estate forum on Monday, enticed global investors with incentives and enormous opportunities in the country’s real estate sector and the good returns the sector offers on investment.

Ahmed Dangiwa, minister of housing and urban development, at the event, highlighted the country’s new housing programme called ‘Renewed Hope Cities and Estates’ which, he said, investors could take advantage of to invest in housing.

The minister disclosed that Nigeria’s huge housing deficit offers enormous business opportunities, stressing that the Renewed Hope Cities and Estates Programme serves as a low-hanging fruit for investors in the Middle Eastern nation to take advantage of and get good returns.

The forum which had as theme, ‘Balance and Innovation in the Real Estate Landscape,’ was held at the Four Points Hotel in Riyadh and featured seasoned panellists, including Abdullah Al-Attiya, Minister of Municipality, Qatar, and Abdulla Muththalib, Minister of Construction, Housing and Infrastructure, Republic of Maldives.

“Nigeria’s real estate sector contributed around 5.2 percent to the nation’s GDP in 2024, and will increase in market volume to $2.25 trillion by the end of 2025. Despite this, there is still tremendous opportunity for investment, especially in the Residential Real Estate segment. Nigerians need homes now more than ever and you can partner with the Nigerian government to deliver these houses at scale,” Dangiwa said.

He noted that Nigeria faces an estimated housing deficit of 28 million units, a situation exacerbated by rapid urbanization and migration. “The government is tackling this by prioritizing large-scale housing delivery through public-private partnerships, innovative financing, and government-led interventions. Additionally, efforts are underway to engage state governments in unlocking land for affordable housing projects, as difficulties in land acquisition continue to hinder progress,” he added.

Speaking on the theme, the minister provided the context, emphasizing that housing is a fundamental driver of economic growth, social stability, and national development. He noted, however, that achieving a balance in the real estate sector between affordability and profitability means that the challenges of sustainability and cost efficiency, as well as policy and private sector incentives must be addressed.

“In Nigeria, rapid urbanization, population growth, and economic pressures necessitate a rethinking of housing delivery strategies. The federal government is committed to addressing these challenges through initiatives like the Renewed Hope Cities and Estates Programme, the National Social Housing Fund, and strategic partnerships with local and international stakeholders,” he disclosed.

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Addressing the tension between affordable housing and profitability for developers, he acknowledged concerns that affordability often conflicts with commercial viability. “To counter this in Nigeria, the government is using incentives such as bankable offtake guarantees, facilitated land access, and low-interest financing to encourage investment in affordable housing.

“The planned National Social Housing Fund aims to mobilize long-term concessional financing to ensure accessibility for lower and middle-income Nigerians. Furthermore, innovative models such as off-plan sales and bulk purchasing by cooperatives are being explored to reduce financial risks for developers while ensuring affordability for buyers,” he noted.

The Minister also talked about sustainability, stressing that energy-efficient buildings, the use of local materials, and smart construction techniques ultimately lower maintenance and operational costs.

On this note, he said, the ministry is working with international partners like IFC EDGE to integrate green building practices into Nigeria’s housing sector through capacity building, technology transfer, and financial incentives.

He added that the establishment of Building Materials Manufacturing Hubs across Nigeria’s six geopolitical zones is expected to reduce reliance on imported materials, cut costs, create jobs, and support sustainable housing solutions.

He further assured the investors of the government’s commitment and actions towards enhancing the affordability of Nigerians to purchase homes through mortgage, pointing out that high-interest mortgage rates, which can reach up to 30 percent per annum, have historically made homeownership difficult for many Nigerians. To address this, he said, the government is expanding the Federal Mortgage Bank of Nigeria’s reach and recapitalizing it with N500 billion to provide more accessible single-digit mortgage products.

Declaring that Nigeria’s real estate sector is open for business, the minister reaffirmed government’s commitment to creating an enabling environment for the sector’s growth through strong policies, regulatory frameworks, and investment incentives.

“Collaboration with the Nigeria Governors’ Forum is also ongoing to improve land access, streamline approval processes, and enhance urban planning policies. Furthermore, urban renewal and slum upgrading initiatives are being expanded to improve living conditions in rural, semi-urban, and urban areas,” he assured.