Report links global oil crisis to Nigeria’s real estate pressure
Estate Intel has warned that rising diesel prices are shrinking developers’ profit margins and driving up property prices across Nigeria’s real estate sector.
The firm disclosed this in its latest report titled Impact of the USA/Iran War on Nigeria’s Real Estate, which examined how the ongoing conflict affects construction activities, real estate investments, and the broader economy.
According to the report, higher fuel and energy costs continue to raise construction expenses, delay projects, and increase financial pressure on developers.
Estate Intel said the company consulted industry professionals across different sectors to assess the economic impact of the crisis on Nigeria’s property market.
Fuel price surge worsens construction costs
The report stated that the escalation of the US-Iran conflict in February 2026 triggered sharp increases in global oil prices after Iran reportedly shut the Strait of Hormuz following US-Israeli airstrikes on Iranian military and nuclear facilities.
Estate Intel noted that the development exposed Nigeria’s economy to rising inflation and growing uncertainty, especially in oil-linked industries such as construction and real estate.
“Higher diesel costs will reduce developer profit margins and increase property sale prices,” the report stated.
The firm explained that petrol prices in Nigeria climbed from N840 per litre in February 2026 to over N1,200 per litre in March. Diesel prices also rose from N1,300 in January to above N1,700 in April 2026.
According to the report, the increase in diesel costs has pushed up transportation expenses for building materials and raised operational costs for developers and property owners.
Developers face delays, rising logistics costs
Estate Intel said the crisis has increased freight charges and insurance premiums while extending project delivery timelines.
Chief Executive Officer of Cutstruct, John Oamen, said tensions around the Strait of Hormuz have increased indirect risks for Nigeria’s construction supply chain.
He explained that global shipping companies now apply higher war-risk insurance charges and adopt more cautious shipping routes.
“Although supply disruptions remain limited, logistics costs and delivery timelines have become more volatile,” Oamen said.
He added that the situation continues to raise project costs and delay completion schedules within the real estate sector.
Office rents and service charges may rise
The report also projected higher maintenance costs for commercial buildings and multi-tenant residential properties.
Estate Intel noted that landlords and facility managers may increase service charges due to rising diesel and operational expenses.
Oamen added that some businesses may reduce operational costs by adopting hybrid work models for employees.
Higher oil revenue may boost property demand
Despite the challenges, Estate Intel said increased oil revenue could stimulate demand for property assets in some parts of the market.
However, the report warned that rising debt-servicing costs may increase borrowing and create additional financial pressure on investors and developers.
The firm stressed that Nigeria’s real estate sector remains vulnerable to global oil market volatility and rising energy costs.
