By Mayowa Gabriel Oyaniran
The Kano private rented sector (PRS) is taking a bold stance in the Nigerian real estate sector, showing signs of rental and capital growth.
Notably, investors are increasingly embracing value-add strategies, which drive asset repurposing and redevelopment efforts throughout the city.
Despite projections of a potential supply glut in the retail market, Grade A retail spaces remain attractive to corporate occupiers, usually the Lebanese, Chinese, and Indian franchisees. Among Nigeria’s tier II cities and Northern urban centres, excluding Abuja, Kano stands out.
Urbanisation and rising demand for residential and commercial space strategically position the real estate market for more investment opportunities.
In high-end residential areas such as Nasarawa GRA, Bompai, State Road, and Hotoro GRA, the demand for 5-bedroom and 4-bedroom detached duplexes is predominant, closely followed by 3-bedroom blocks of flats.
Average rental values in these upscale locations stand at ₦15 million for a 5-bedroom, ₦12 million for a 4-bedroom duplex, and ₦8 million for a 3-bedroom flat.
These neighbourhoods continue to attract affluent residents and expatriates, particularly Lebanese, Chinese, and Indian nationals, due to high security, quality infrastructure, proximity to the central business district and key government institutions.
As affordability becomes a constraint in the high-end market, middle-income professionals, such as bankers, civil servants, and corporate employees, are turning to more accessible neighbourhoods like Hausawa Layout, Badawa Layout, Nomansland, Tarauni Layout, Hadejia Road, CBN Quarters, Ribadu Road, and Shagari Quarters.
In these mid-tier areas, there is strong demand for 3-bedroom bungalows, 4-bedroom detached duplexes, and 2-bedroom apartment blocks.
Average rental values are approximately ₦1.5 million for a 3-bedroom bungalow, ₦2.5 million for a 4-bedroom duplex, and ₦800,000 for a 2-bedroom flat.
Key demand drivers in these neighbourhoods include affordability, adequate security, road connectivity, and accessibility to the CBD.
In low-end areas such as Sabon Gari, Dorayi, Naibawa, Riyar Zaki, Goro Dutse, Yankaba, and Katsina Road, housing demand is concentrated mainly on tenement buildings, studio apartments, two-bedroom flats, and mixed-use properties combining shops and 1- and 2-bedroom apartments.
Investors in these areas are increasingly going vertical, constructing multi-floor apartment blocks to maximise rental yields. Average rental values across these neighbourhoods are approximately ₦700,000 for a 2-bedroom flat, ₦350,000 for a 1-bedroom unit, and ₦150,000 for a studio apartment.
Sabon Gari, however, stands out in this segment due to its relative security and appeal to non-indigenous residents. This results in higher rental values averaging ₦800,000 for a 2-bedroom flat, ₦450,000 for a 1-bedroom unit, and ₦250,000 for a studio apartment.
“With an Average Rental Yield (ARY) holding between 5% and 7%, Kano’s private rented sector shows stability”
On the commercial front, Zoo Road is rapidly emerging as a core hub for office development, alongside established commercial corridors such as Ibrahim Taiwo Road, Bello Road, Lagos Street, and Post Office Road. Retail spaces like specialty stores and supermarkets, quick-service restaurants (QSRS) and shopping plazas are increasingly spotted at virtually every step around the city.
Although there is a risk of oversupply, Grade A retail spaces continue to attract strong demand due to their quality and prime location.
Meanwhile, the industrial segment, particularly pharmaceutical storage and logistics, presents a significant untapped opportunity for forward-looking investors.
“The Lagos state real estate market is not the future for Nigeria, but will remain critical. The future of real estate investing belongs elsewhere”.
Emerging urban centres like Kano increasingly capture investor interest due to their untapped potential, evolving demand, and strategic urbanisation trends.
The Kano real estate market is undoubtedly making a strong case as one of Nigeria’s next frontiers for real estate investment.
Mayowa Gabriel Oyaniran is a
Real Estate Research Analyst