Country NG Cost of Living Analytics

Living expenses and utilities

Basic Utilities (85m²)

$28

Monthly utilities (electricity, heating, cooling, water, garbage) for 85m² apartment

Mobile Phone Plan

Mobile phone monthly plan with calls and 10GB+ data

Internet (60 Mbps)

$32

Internet (60 Mbps or more, unlimited data) monthly cost

Average Monthly Salary

$159

Average monthly net salary after tax

Data Availability Note: Mobile phone plan data is only available from 2023 onwards, as this metric was added to Numbeo's database in that year. All other cost of living indicators have historical data from 2010-2023.

Basic Utilities (85m²)

Monthly utilities (electricity, heating, cooling, water, garbage) for 85m² apartment

Mobile Phone Plan

Mobile phone monthly plan with calls and 10GB+ data

Internet (60 Mbps)

Internet (60 Mbps or more, unlimited data) monthly cost

Average Monthly Salary

Average monthly net salary after tax

Additional Insights

Expert analysis of Country NG Cost of Living trends and investment implications

Market Overview

Nigeria's real estate market presents a mix of high growth potential and substantial risks. With GDP growth averaging 2.5% annually over the past decade and urban population growth at 4.3%, the property sector shows promising demand. However, property appreciation has lagged behind GDP growth, indicating undervaluation opportunities. High rental yields in urban centers contrast with fluctuating interest rates, creating nuanced investment scenarios.

Key Findings

Data-driven insights

•House prices have increased by an average of 1.8% annually since 2010, slower than the GDP growth rate of 2.5%, suggesting potential for capital gains.
•Rental yields in city centers like Lagos and Abuja average 8-10%, offering attractive cash flow opportunities against current interest rates of around 13%.
•With a population growth rate of 2.6% and inadequate housing supply growth, demand significantly outstrips supply, pressuring prices upward.
•After-tax investment returns are impacted by a high tax burden, with property taxes and transaction fees consuming approximately 15% of gross returns.

Market Trends

Historical patterns

•Urbanization is driving demand as Nigeria's urban population grows at 4.3% annually.
•Government initiatives to boost affordable housing are increasing housing supply slowly.
•Currency volatility and inflation, averaging 12-14%, pose significant risks to foreign investors concerned about FX losses.

For Investors

Actionable takeaways

•Consider investing in high-yield urban residential properties in Lagos and Abuja for strong rental returns.
•Be cautious of currency exchange risks and consider hedging strategies to protect against Naira depreciation.
•Focus on 1-2 bedroom apartments in city centers as they offer the best balance of affordability and demand.
•Monitor interest rates closely; a decrease could enhance financing conditions and increase real estate investments.

Market Context

Compared to other emerging markets like Kenya and Ghana, Nigeria offers higher potential rental yields but carries greater currency risk. The market is less mature than South Africa's but offers significant growth potential driven by urbanization and economic reforms.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.