Is Real Estate Still Worth It in 2025? The Global Truth Behind the Hype
They say, “Land never depreciates.”
But in 2025, with rising mortgage rates, slowing
rental growth, and dodgy land banking deals,
it’s fair to ask:
Is real estate still worth the stress, debt, and
delay?
Let’s break down what’s actually working,
what’s not,
and how Nigeria,
the UK, and the US are playing very different versions of the
property game right now.
Mortgage Rates Are Up. Is Ownership Still Smart?
Nigeria: The Land of Cash and Land
Banking
- Mortgage penetration
is below 5%, most
properties are cash bought - Developers offer “pay small small” plans, but many are unregulated
- Land banking scams
are rising, especially in Abuja and Lagos outskirts
Case Study: A
Lagos couple paid ₦3M deposit for “off-plan” land. Two years later: no
allocation, no refund, and the company has rebranded twice.
Rental yields:
4%–6% in high-demand zones, but prices are stagnant in oversupplied areas.
UK: Rent’s Rising, But So Are Headaches
- Mortgage rates now
average 5.2% (up from ~1.5% pre-2022) - First-time buyers are priced out; many stuck
in rent cycles - Buy-to-let investors
face new tax and EPC (energy) compliance issues
Case Study: A
London-based investor saw their rental ROI drop from 6.8% to 3.5% after higher
interest and boiler upgrades.
Rental yields:
2.5%–5% in London; better in northern cities like Leeds or Manchester.
US: The Airbnb Boom That’s Fizzling
- 30-year mortgage rates
are around 7%, highest since 2001 - Inventory is tight, pushing prices up, but affordability
down - Short-term rentals
(Airbnb) face regulation in major cities like NYC and
Atlanta
Case Study: A
Florida host earning $3k/month from Airbnb now struggles with $500 HOA fines
and strict guest caps.
Rental yields: 5%–8% in Midwest
markets; coastal cities are less profitable due to cost.
The New Real Estate Formula in 2025
|
Metric |
Nigeria |
UK |
US |
|
Mortgage Rate |
25%+ |
5.2% avg |
~7% 30-year |
|
Rental Yield |
4%–6% |
2.5%–5% |
5%–8% |
|
Risk Factor |
Land fraud, no registration |
Taxes, EPC, interest |
Regulation, maintenance |
Should You Still Invest?
Yes, IF:
- You’re buying for cash flow,
not just speculation - You’ve verified title and compliance
(especially in Nigeria) - You diversify beyond just property (don’t
get “land-locked”)
No, IF:
- You’re chasing hype with no exit plan
- You expect property to “always go up”
- You don’t have liquidity or legal support
Financial Juggernut Insight
In 2025, real estate is not a sure
thing,
it’s a bet that must be backed by
due diligence and a plan.
- Want to flip? You need capital and timing.
- Want to rent? You need management and
patience. - Want to land bank? You better know who holds
the real deed.
Property is still powerful. But only when you know what
you’re buying, why you’re buying,
and what could go wrong.
