Best Places to Invest in Real Estate in Nigeria: The Ultimate Guide
Investors want to invest in real estate in Nigeria but the question is where are the best places to invest in real estate in Nigeria?
16 cities in Nigeria have a population of over 1 million residents, with 70% of that population under 30.
This implies a greater demand for housing and commercial spaces across these cities.
If you are looking for where to invest in real estate, these are the places with the numbers and the revenue.
In this article, you will see:
- The best places to invest in real estate in Nigeria
- The promising areas to invest in real estate business in Nigeria
- Factors to consider when investing in real estate in Nigeria
What Are the Best Places to Invest in Real Estate in Nigeria?
If you are looking for where to start investing in real estate for residential properties or land banking, you should consider any of these locations.
They stand out among other Nigerian locations mainly due to infrastructure, their growth potential, and overall desirability by people immigrating from most parts of the country.
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Lagos: The commercial hub and real estate hotspot
Lagos is practically the capital of commerce in Nigeria, and this makes it a convenient location for people to live in.
The city has a vibrant economy fueled by several sectors including technology, finance, entertainment, and manufacturing.
This diversity causes a huge demand for residential properties, especially for workers.
READ: What to Know Before Buying Land in Lagos
Locations such as Victoria Island, Lekki, Ikeja and Ikoyi are known for their commercial demand due to the need for luxury apartments, retail outlets, shortlet apartments and office spaces.
One of the encouraging facts about real estate investment in Lagos is its rapid infrastructure development.
Some of these include the Lagos Rail Mass Transit and the Lekki Free Trade Zone respectively designed to ease transportation and encourage economic activities.
However, the more accessible and populated a place is, the more expensive the land there becomes.
So, if you want to invest in land in Lagos, you should keep a close eye on developing locations.
These places are less populated but fast-developing locations and have an increasing demand for land.
Here are some of the less-populated locations places you should consider investing in:
- Mowe-Ibafo district which is now an alternative for many Lagosians to live in because it is quieter and more affordable.
- Epe for its fast-developing infrastructure such as the Epe Marina Project and the proposed Lekki Deep Sea Port.
- Ikorodu because it balances city life and serenity with transport convenience.
- Badagry because of its availability of large vacant plots of land and tranquility for residents.
However, if you want to invest in real estate in Lagos, you must carefully plan and strategize. Ensure to do your due diligence to verify the ownership of the land you are buying.
2. Abuja: The Capital City and Emerging Real Estate Market
Abuja, the capital city of Nigeria, offers the perfect blend of political significance and real estate capacity.
The city which was originally planned to be a modern metropolis now attracts top foreign and local investors.
The city is mostly made up of government workers and expatriates creating an increased demand for housing.
However, just like Lagos, Abuja contains a mix of luxury and affordable land and other real estate properties.
Areas such as Maitama, Garki, Guzape and Asokoro are popular for their upscale developments, making them appeal more to diplomats and other high-income earners.
On the other hand, there are other affordable housing options in neighborhoods like Kubwa, Lugbe, Galadimawa and Idu which cater to middle-income families.
This diversity allows you as an investor to reach different market segments and get the best return out of each.
Additionally, the city’s ongoing development projects such as the Gaba-Tokula Road, including new roads and commercial centers, further enhance its investment appeal.
However, if you are looking to go into Abuja’s real estate, you engage with local experts or a seasoned real estate investor to understand the regulations surrounding land ownership.
Get to know zoning laws and property acquisition processes.
Also, look out for emerging trends that can help you make strategic investment decisions.
For land banking purposes, consider the areas in Niger and Nasarawa states that are already close to Abuja
3. Port Harcourt: The oil-rich city with investment potential
Stadium Road, PortHarcourt
Popularly called the Garden City, Port Harcourt is another one of the best places to invest in real estate in Nigeria.
The city is the oil capital of the country and this makes it one of the most economically vibrant areas in Nigeria.
With an economy driven by the oil and gas sector, Port Harcourt provides several investment opportunities for expatriates and professionals.
So, if you are looking to find a real estate market within Nigeria, you should invest in Port Harcourt.
Here, you will find standard government workers who can afford middle-income properties.
You will also find top civil servants and oil industry personnel who can afford luxury apartments.
Check out these areas in Port Harcourt before you start investing in its real estate.
- Areas around and in Old GRA and New GRA: Popular for high-end apartments and expensive land
- Diobu and Eagle: More affordable for investors and residents alike
- Key areas with major government projects such as Etche (PH Ring Road) and Eleme (the PH Mega City).
However, if you want to invest in real estate in Port Harcourt, you ought to be cautious.
The oil market can be volatile and this can directly influence the demand for properties within the local economy.
Ensure that you perform extensive market research and analysis.
The volatility of the oil market can impact the local economy and influence the demand for property.
Also, be careful to invest in very safe and secure areas that are not prone to attacks by illegal criminals.
You can get to know this information by engaging with local real estate professionals. These persons can provide real-time insights into trends around the community.
4. Ibadan: The Buy-Low, Sell-High Investment Market
The Ancient City of Ibadan
The Ibadan real estate market stands out for its buy-low, sell-high potential.
If you want to invest in real estate in this city, you can get huge investment potential for an affordable investment deposit.
Unlike Lagos and other prime cities within Nigeria, Ibadan generally offers a lower property price.
This makes it a top attraction for first-time investors and other investors seeking high real estate RoI.
Ibadan also promises a stable market consisting of a huge fraction of Lagos earners looking for lands to purchase.
Also, the presence of a thriving population of students and professionals within the city creates a consistent influx of residents seeking rental accommodation.
Ibadan has an excellent public transport system and fast-expanding road networks.
These improvements enhance accessibility for residents who want to purchase land or rent properties in areas away from the city center.
If you are looking for where to start investing in real estate in Ibadan, consider diversifying your portfolio. Explore neighborhoods like Ido, Omi Adio, Ayegun Oleyo, Akufo, and Akala express for investments that will attract middle-class families.
And like in every other city, do well to do your research to understand the market dynamics.
5. Uyo: The Land of Real Estate Promise
Godswill Akpabio International Stadium, Uyo by Hadassah Photostorie Group
Uyo is one of the fastest-growing cities in Nigeria with a population of 1.4 million people.
The city is home to multiple housing projects including the Shelter Afrique and the Ewet Housing Estate.
What makes Uyo unique is the presence of the Godswill Akpabio International Stadium and two industrial estates, which create a steady supply of tenants as a result of work immigration.
Also, the construction of major roads and the Uyo International Airport has opened the state up to multiple economic possibilities.
Like Lagos and Abuja, Uyo is split into two real estate investment locations.
The high-end areas include the areas around Ring Road linking to Nung Ete, locations around the Ewet Housing Estate, and the Osong Ama Estate.
Highbrow residential areas in Uyo include the prestigious Ewet Housing Estate, Shelter Afrique, and a host of other choice areas in the city and its environs.
The state government plans to construct newer residential districts as well as a central business district within the metropolis.
6. Asaba: Capital City of Real estate in Delta
Asaba has evolved into one of the fastest-growing real estate investment locations in Nigeria.
Its position as the state capital and its proximity to Onitsha, an ultra-commercial hub, has led to increased demand for residential and commercial housing.
Compared to other states in Nigeria, Asaba affords one of the most affordable land and property investment opportunities.
If you are considering investment in Asaba, you should go for places such as
- Okpanam which is popular for link roads, the presence of the State Assembly and the Asaba Shoprite Mall
- GRA was built to cater to high-end earners.
- Ubulu-Okiti is a transit town that connects Asaba and Benin. Its huge land availability makes it one of the best places for land banking in Nigeria.
Ogwashi-Uku: Home to the Delta State University College of Education (DELSUCOE), this location promises huge rental property returns.
And this extends beyond students it is sought after by many residents for its relative serenity.
7. Enugu: A Coal City with Real Estate Mines
University of Nigeria, Nsukka
Enugu is one of the biggest hotspots for real estate investment in southeastern Nigeria.
Emerging locations such as Amokpo Nike offer a balance of urban convenience and serene suburban living, attracting both developers and homebuyers.
Enugu offers a perfect balance of featuring luxury apartments, commercial spaces, and recreational areas, appealing to investors seeking high-end real estate opportunities.
Other locations include Ugwuogo Nike and Agbogazi Nike which currently are experiencing tremendous development such as the dualization and expansion of roads, construction of building material markets, and the international market in the heart of Ugwuogo Nike.
Investing in lands in Ugwuogo Nike and Agbogazi Nike today is one of the best investment decisions you can make in Enugu City.
8. Aba: The Japan of Africa
Aba is one of the commercial powerhouses in Nigeria.
Its thriving Ariaria International Market makes it a hub for foreign and indigenous traders.
This vibrant commercial and entrepreneurial spirit has caused a growing demand for residential and commercial properties.
As an investor, you should look to invest in areas like Ogbor Hill and Osisioma, which offer opportunities for developing affordable housing to cater to the city’s increasing population.
The local government’s efforts to improve infrastructure and promote industrial growth further enhance Aba’s attractiveness as a real estate investment destination.
9. Calabar: The Coastal Jewel of the East
Calabar, the capital of Cross River State, has become one of the most reliable real estate investment destinations in Nigeria.
The city is strategically located along the southeastern coast, making it a tourist hub.
Its multiple tertiary institutions also provide a huge real estate accommodation market.
Key neighborhoods such as State Housing Estate and Federal Housing Estate are notable for their well-developed infrastructure and offer a mix of high-end homes and commercial properties.
These areas are particularly attractive to investors seeking to tap into the growing demand for quality housing and business spaces.
Other affordable real estate investment locations include
- Lands on the Murtala Mohammed Highways
- Lands and properties in Odukpani
Investment opportunities in the Nigerian real estate sector
The Nigerian real estate market brims bright with investment opportunities in the residential and commercial sectors.
Here are some reliable opportunities you can invest in within the industry:
- Housing
Perhaps one of the most promising is in the affordable housing segment.
The average Nigerian is a middle-income earner, hence the need for decent housing projects.
The government also supports the provision of affordable housing. And as such, it supports investors with incentives, encouraging long-term investment.
2. Mixed-Use Properties
These lucrative avenues mix residential, commercial, and recreational spaces. This is gaining popularity in urban areas with limited spaces.
Investing in this kind of property ensures a smooth cash flow from both residents and businesses.
An example of this kind of building is the Nestoil Tower in Lagos.
The only bottleneck to investing in this kind of property is that it involves a huge capital base to develop and manage.
However, you can connect with other investors to create a pool of capital that can serve as a bank of resources for the project.
3. Hospitality
In cities such as Port Harcourt with lots of high earners, Lagos with residents who seek relaxation, and Ibadan with many commuters, you can explore the hospitality sector.
This will cover properties such as hotels, resorts, and short-term rentals (such as AirBnB).
As an investor, you can capitalize on this industry to cater to both residents and foreign travelers and tourists.
Factors To Consider When Investing In Real Estate in Nigeria
When investing in real estate in Nigeria, there are factors that you must consider carefully. To have a successful investment, you must have made successful investment research on factors including
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Location
Understand the dynamics of location before you start investing.
Real estate is always associated with proximity to basic amenities such as hospitals and schools.
You need to consider the nearness of the land or property you are investing in these infrastructures before you put in your money.
And if the area is still largely undeveloped, you must have first-hand information that there will be development in the coming months or years.
2. Legal Framework
You must consider the land tenure system of the area you are investing in.
Know the technicalities of property rights, legal disputes, and the legal cost of safeguarding your investments in case of such conflicts.
Also, you need to make a difference between lands controlled by customary land tenure and statutory land tenure.
Under the customary land tenure, families and villages own and manage the land. While under the statutory land tenure system, the land is covered by standard laws, not traditional ones.
3. Market Trends and Demography
In this article, I discussed how important it is to study your audience before you buy land in Lagos or anywhere in Nigeria at all. Do well to check for this information:
- Population growth
- Income levels, and
- Employment rate
These will give you an insight into what to expect in terms of demand for commercial and housing real estate in the future.
For instance, regions with lots of professionals or a burgeoning middle class are likely to see increased demand for housing, making them prime targets for investment.
Staying informed about economic indicators, urbanization trends, and government initiatives aimed at boosting real estate development can empower investors to make data-driven decisions that lead to successful outcomes.
Challenges and risks of investing in Nigerian real estate
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Bureaucracy
One of the main challenges that face property acquisition and development in Nigeria is the bureaucratic processes involved.
There is a maze of permits, regulations, and permits that you may need to get. These processes can be time-consuming and frustrating.
To ease this process, you can connect with specific government officials who provide these services. They can show you the ropes and as a result, expedite the process of getting these documents.
2. The Volatile Economy
Nigeria has quite a fluctuating economic landscape. This is due to the constant shifts in oil prices, and the regular price inflation from foreign exchange rates.
As a real estate investor, you should observe the response of citizens to these changes in the economy.
How people respond in crisis can determine their demand for real estate and as a consequence, the RoI on your investment.
3. Security
One of the most common questions I get from Nigerians abroad is “How safe is real estate investment in this area?”
And it is true – security concerns pose a challenge to real estate investments in some parts of Nigeria.
Issues such as theft, thuggery, vandalism, and civil unrest can affect property values.
As an investor, you must assess the security landscape of your target location and set up measures that will help you minimize the risk that may come with investing in such an environment.
This may include engaging local security services, investing in surveillance systems, and staying connected with community leaders to foster a sense of safety and security.
Conclusion: Choosing the right location for your real estate investment in Nigeria
The phrase “How does real estate investment work ?” can be answered with How can I buy real estate? And Where can I invest in real estate?
Choosing the right location for real estate investment in Nigeria is paramount to achieving success in this dynamic market.
You must consider factors such as:
- Demand from market
- Infrastructural development
- Legal framework
If you are ready to take the next step in your real estate investment journey in Nigeria, look over the cities and locations I mentioned in this guide again.
Also, when you find the location you prefer, be sure to consult with local real estate professionals for expert advice.
Have great success investing!