International Journal of Sub-Saharan African Research (IJSSAR)

Background: Urbanisation has emerged as a transformative force reshaping cities, economies, and land-use patterns worldwide, with pronounced effects in developing economies such as Nigeria. Factors such as rapid rural-to-urban migration, population growth, and expanding urban centers have intensified demand for land, housing, and commercial real estate. Thus, it is important that a rapid growing sector (real estate) is examined in relation to the ever growing population of Nigeria as empirical studies on the issue is scarce especially in the 21st century where there is explosive entrance in the commercial real estate sector. Objectives: This study investigated the impact of urbanisation on real estate businesses and commercial property development in Nigeria, focusing on how urban growth shapes investment patterns, market opportunities, and spatial inequalities. Methods: A descriptive survey design was adopted, with 150 real estate CEOs and managers purposively selected from major urban centers across Nigeria’s six geopolitical regions. Data were collected via structured questionnaire and analysed using descriptive statistics, including means and standard deviations, to capture respondents’ perceptions of urbanisation trends, commercial real estate development, hindering factors, and improvement strategies.
Result: Findings reveal that urbanisation is perceived to significantly increase demand for residential and commercial properties, particularly offices, retail outlets, warehouses, and mixed-use developments. The study also found that population influx drives spatial concentration of high-end commercial projects, while peripheral areas remain marginalised.
Conclusion: In conclusion, the study found that key constraints to real estate development include inadequate infrastructure, inconsistent policies, land administration challenges, and fraudulent real estate practices.
Unique Contribution: It is obvious that there is rise in urbanisation as a result of real estate, but despite the scale of urbanization in Nigeria, there remains a noticeable gap in empirical literature that systematically examines the impact of urbanisation on real estate businesses and commercial property development within the Nigerian context. This gap limits evidence-based policy formulation and strategic decision-making in the real estate sector, thereby necessitating the present study. Key Recommendation Based on these findings, the study recommend that federal and state governments should adopt integrated urban planning policies that promote the development of secondary cities and emerging urban corridors as this will lead to a more balanced spatial distribution of commercial real estate and reduce development pressure in major metropolitan areas.