South African investment in Nigeria’s real estate market has dropped sharply over the past decade, shrinking by 52% from $300 million to $145 million, a new report reveals. Once a major driver of acquisition activity, South African institutional capital no longer dominates the secondary market, reflecting a shift in investor focus.
Between 2009 and 2015, South African firms, notably Resilient Africa, spearheaded retail development in second-tier Nigerian cities such as Owerri, Asaba, Delta, and Onitsha. The joint venture, partnering with Shoprite and Standard Bank, created jobs and stimulated economic growth.
However, according to Dolapo Omidire, founder of Estate Intel, exits by South African investors focusing on their home market have reduced their influence. In their place, new investors from the UK, US, Mauritius, and local Nigerian funds have stepped in, driving activity in the secondary market.
Omidire highlighted a growing interest in brownfield projects, where investors acquire and renovate existing properties at lower costs. Notable examples include IMB Plaza, now achieving 70% occupancy, and the Victoria Tower in Ikeja, set to be redeveloped as The Phoenix with international tenants like Tetra Pak and Biersdorf.
Despite rising construction costs, the Nigerian real estate market is responding positively to increased commercial property acquisition. Omidire cautioned that market activity may temporarily slow ahead of the 2027 elections, but long-term investors can still secure high-quality assets at attractive prices.
