Nigeria's economy expanded by 4.43 per cent year-on-year in real terms in the second quarter of 2026, with real estate contributing 12.71 per cent of real GDP ranking it the country's third-largest economic activity, behind only trade and crop production.
The figures come from the National Bureau of Statistics' (NBS) Q2 2026 Gross Domestic Product Report, released on August 31. Q2 growth improved from 3.89 per cent in Q1 2026 and from 4.23 per cent recorded in the corresponding quarter of 2025. Nigeria's aggregate GDP reached ₦119.27 trillion in nominal terms, up from ₦100.7 trillion a year earlier, while real GDP stood at ₦53.47 trillion.
Real estate's share eased, but growth improved
Real estate's 12.71 per cent share of real GDP in Q2 was a slight decline from 13.10 per cent in Q1 2026. Within that smaller share, however, the sector's real growth actually improved, rising to 3.76 per cent year-on-year, up 1.47 percentage points from Q1, though slightly below the growth recorded in Q2 2025.
The NBS attributed Nigeria's broader non-oil growth which made up 95.84 per cent of real GDP — to agriculture, information and communication, real estate, trade, financial services, cement manufacturing and construction. Construction alone expanded 6.75 per cent in real terms over the same period, and information and communication posted the strongest growth among non-oil activities at 9.62 per cent.
Alongside the non-oil gains, improved oil production supported the overall expansion, while inflation continued to ease through the quarter — two conditions that, taken together, point to a shifting macroeconomic backdrop for property investment and financing.
A third-place ranking confirms real estate's continued weight in the national economy property transactions, construction, land-related activity and rentals remain a significant share of what Nigeria produces. But the dip in real estate's GDP share alongside improved growth is worth sitting with: it suggests other sectors, not a slowdown in real estate itself, grew faster in the quarter. For developers and investors, the improving growth rate inside a still-large sector is the more useful signal than the share figure alone.
What it means
Stronger non-oil growth and easing inflation are generally supportive conditions for construction costs and financing over time, though neither moves prices or mortgage rates overnight. If you're weighing a purchase or investment decision based on "the market is growing," ask for specifics which segment, which city, and over what period rather than relying on the national headline figure alone.