7 Mistakes to Avoid When Buying Land in Ikorodu

Introduction

This article is about 7 mistakes to avoid when buying land in Ikorodu.

Buying land in Lagos can be a crazy problem, especially if it is your first time.

It can be even worse if you buy land in a suburb like Ikorodu. This is because there is so little information about Ikorodu land online.

All you may see online about buying land in Ikorodu may be listings about land for sale. Because of this, many people make mistakes when buying land.

Buyers are likely to go headlong into transactions without researching properly and this is why many people get duped of their money.

In this article, I will be showing you

7 common mistakes you must never make when buying land in Ikorodu
The documents you must have when buying land in Ikorodu

READ: what to know before buying land in Ikorodu

7 Common Mistakes to Avoid When Buying Raw Land in Ikorodu

When you often buy land in suburbs like Ikorodu, you can make these mistakes without knowing it.

And by the time you realize these mistakes, it may just be too late for you.

Here are 7 mistakes you must avoid actively if you want to avoid real estate troubles in Ikorodu:

1. Neglecting Due Diligence

This is the number one thing I tell anybody who wants to buy land for personal or investment reasons anywhere in Nigeria.

In advanced places like the United States and Europe, you can easily go online and find all the details you need about buying land in a particular place. All you need is your Internet and your computer.

But it is a different story in Nigeria!

Even if you have the fastest Internet network, there is so little information on land and its purchase process online.

And this is where you have to take due diligence seriously.

Due diligence is beyond just knowing the price of the land. Here are 3 things you should do when you're doing due diligence on land:

Meet the Landowner

If you have found a spot that you want to buy, make sure you connect with the landowner, if it is a private property.

But if you are buying a family land, make sure you meet the head of the family and the other decision-makers in the family.

When you are buying a family property, it is a different dynamic. If only the family head sells to you without the approval of the decision-makers in the family, it can be a problem.

This same rule applies when you are buying community land. If only the chief approves the sale, your land can be taken from you.

So, you need to ensure that you do not only meet the family or the community chiefs. Do well to ensure that the decision-makers in the family or the community approve your purchase.

Lastly, if you will be dealing with an agent, make sure that they are communicating your demands and needs to the owner of the property.

Also, confirm that you are communicating with the owner’s legitimate agent.

Go to the Land Office

Many times, you may want to trust the agent, the family head or the community chief because they have produced land documents.

But you should not rely on that.

Instead, get a surveyor and get the coordinates of the land you want to buy. Then, take the coordinates to the Land Office of the state you are buying in.

At the Land Office, you will be told who owns the land. You will also get to know whether or not the land is owned by the government or not.

This way, you will avoid buying land that is already reserved for government use.

Local Research

After you confirm the legal status of the land, you need to do your personal local research. Go to the community where you want to buy and ask questions like

Is there any conflict on the land?
What is the history of the owner?
Why is the land vacant when there are developing properties close to it?
Has there been previous development on the land?
Which local leader do you need to meet if there is a conflict on your land?

Simple questions like this can save you a huge deal of legal issues in future.

2. Overlooking Proper Documentation

As I already mentioned above, it is not enough to see good documentation, it is necessary to verify them.

If the property already has a Certificate Certificate of Occupancy (C of O), get your lawyer to help you review it and confirm if it is valid. The best way to do this is to reach out to the Governor’s Office.

If you are using an agent, follow up every transaction that they make on your behalf. Ensure that the Deed of Assignment is signed by the right parties.

Also, look for an independent lawyer who can verify the parties to the Deed.

When you get these documents right, it will help you have a good defence if there is any conflict arising from the land in the future.

Read to the end of this article, I will show you 4 documents you must get when buying land in a place like Ikorodu.

3. Skipping Professional Surveys

Before you finally buy, make sure you get the coordinates right. Ensure you hire the services of a licensed surveyor who will help you get the correct coordinates.

Naturally, you may want to do this by yourself but it is advisable to use a professional who has more experience.

This single step will help you avoid issues such as boundary disputes and encroachment problems.

4. Ignoring Zoning Regulations

For every state, there are specific local zoning regulations. If you want to buy land in Ikorodu, you need to follow regulations that apply to Lagos State in the Lagos State Urban and Regional Planning and Development Law.

The law specifies peculiar issues such as

How you can use certain lands
The height of your building in specific areas
Permits you need from the Lagos State Physical Planning Permit Authority (LASPPPA) before construction
Plans for large developmental projects
Building codes, structural integrity, and safety measures

Where you buy land without knowing the zoning regulations there, you can have restricted use of the land.

Here are some things you need to know about land use classifications in Ikorodu:

Residential Zones: Residential zones in Ikorodu are mostly low-density and medium-density housing estates.
Most communities like Igbogbo, Gberigbe, and Ijede are now expanding fast with new housing developments.
Due to specific restrictions, you cannot build high-rises in these kinds of areas.
Commercial Zones: Places like Ikorodu Garage, Agric, and Ita-Elewa are dominantly commercial hubs.
Because of this, you see mixed-use development such as shops and offices within residential areas.
Industrial Zones: Ikorodu is a feeder town between Ogun and Lagos so this has made it a hot target for manufacturing companies. It allows them to access both states easily with the ease of transport ease.

Odogunyan Industrial Estate, for instance, is a major hub for manufacturing and heavy industries. Ikorodu is also home to Dangote Pasta Factory and UAC Foods Limited.
If you want to set up a factory or warehouse in Ikorodu, you’d have to get specific permits
.
Mixed-Use Zones: While some commercial zones are mixed-use, there are other dominant mixed-use locations in Ikorodu like Ebute, Owutu, and Baiyeku. In these places, you can have mixed residential and commercial developments.
Agricultural and Green Zones: Some parts of Ijede and Imota in Ikorodu are reserved for agriculture. Other conservation and flood-prone regions are kept by the government for large-scale construction.

5. Failing to Conduct Physical Inspections

This is a mistake most absent investors make. Don’t rely on the documents to judge the kind of land you are buying. Some lands are flood-prone. Some have a terrible history of security issues.

If you are buying for farming reasons, for instance, you need to confirm with farmers in the area about the wellness of the soil.

If you want to develop your house, you might need to check for things like

Access to electricity
Drainage system, and
Flooding issues

6. Disregarding Infrastructure Development Plans

If you want to buy land in locations in Lagos, it is best to be aware of government infrastructure in the area that will increase the worth of your property. Take advantage of projects such as

Itokin-Epe-Ikorodu Road
Proposed Fourth Mainland Bridge
Ikorodu Ferry Terminal
Imota Rice Mill

These developments are indicators of growth and development in the area. As a result, the rate at which your property gains more value and appreciation.

7. Falling for Unrealistic Deals

One of the biggest mistakes that you can make when buying land in Ikorodu is to jump at deals that are too good to believe.

When you see signs like Ikorodu land for sale, make sure you research how much the average property in the area is.

For instance, it is not possible to buy one plot of land for 1 million in places around Lagos State University of Science and Technology.

If you see that the deal is too good to be true, drop it immediately. It is a scam waiting to explode!

4 Documents To Consider When Buying Land in Ikorodu

As I mentioned above, you should not make the mistake of buying land in a place like Ikorodu without getting the appropriate documents.

I often get asked this question: “What documents should I ask for when buying land?”

It is simple.

If you want to buy land from a family or a real estate agent, these are 4 vital documents you must ask for and ensure that you get.

If you can't get them, just walk out of the deal. It will save you a truckload of trouble in future:

1. Deed of Assignment

I put this one ahead of the rest because it is the most important of all the documents.

You can have the remaining three documents and still lose your land if you don’t have your Deed of Assignment.

The deed of assignment is a document that shows you the buyer and the seller.

It clearly shows that the seller (assignor) has permanently transferred the title of the property to the buyer (assignee).

For instance, if you buy a family land in Baiyeku, you must collect a document that shows that the head of the family and a principal witness have sold the land to you after you paid for it.

If you are buying from a real estate company selling an estate, you may get other details on the Deed like the land next to you, the land beside you, and even a map of the estate attached for your reference.

2. Survey Plan

The Survey Plan is a document that shows details of your land such as

Size
Boundaries, and
Location (Coordinates)

By law, you are required to register this document at The Office of the Surveyor-General.

As a result, anybody can check to see if the government or a private individual owns your land.

If you can get this sorted, no one will want to buy your land from a scam seller. They would have confirmed from the land office that the land already belongs to someone else.

3. Purchase Receipt

This is simply evidence of payment for the land.

When you pay for the land, get a family receipt that features

The family insignia or logo
The size of the land bought
The amount paid for the land
The signature of the seller

Besides being evidence of payment, you will need a receipt to register your land at the Land Office.

4. Certificate of Occupancy / Governor’s Consent

The C of O shows that the state and its laws recognize the buyer as the new owner of the land.

It is usually issued by the Governor to show that he knows that you have bought land in that state.

With a C of O, the governor transfers the statutory right of ownership from his office to the buyer for as long as the law allows.

Many people don’t like getting a C of O because it is quite expensive.

But if you are buying land from someone who already has a C of O, you won’t need to get another one. You will only need the Governor’s Consent on your Deed of Assignment.

Final Thoughts on 7 Mistakes to Avoid When Buying Land in Ikorodu

You can have all the money to buy land in Ikorodu but you have to be very careful not to waste it. Avoid making mistakes that will cost you your land such as

Not doing due diligence
Skipping the proper documentation process
Ignoring zoning regulations
Not conducting inspections on the property
Going for unrealistic deals
Closing your eyes to infrastructural development

Also, ensure that you get your documents right:

Deed of Assignment
Survey plan
Purchase receipt
Certificate of Occupancy

Once you can avoid these mistakes and have the right documents, you will secure your land without the fear of anyone taking it from you.

by Tayo Aladetoyinbo

What to Know Before You Buy Land in Ikorodu

If you google "land in Ikorodu" you'll see more than 1 million results. This article is written to help you make an informed decision when you want to buy land in Ikorodu.

In 2022, Ikorodu became Nigeria’s 12th largest city with a population of 1.04 million residents.

To the average person, this is a magnet for real estate investment.

But even as these figures offer great opportunity, acting on them without proper planning can land you into investment troubles.

So, when next you see a banner that says “Ikorodu Land for Sale”, calm down. Take a pause. There are vital things that you must consider before you commit your money, time, and energy to buying land in Ikorodu.

A lot of people have lost their hard-earned money buying land in Ikorodu because they bought land with government acquisition.

And such land is plenty in Ikorodu. You need to be well informed about the location before making a buying decision.

In this article, I will show you

4 things you must know before you buy land in Ikorodu
3 crazy mistakes you must avoid before buying land
4 documents to ask for when buying land in Ikorodu
5 Reasons to Buy Land in Ikorodu, Lagos

READ: Secrets to know before buying land in Lagos

4 Things To Consider When Buying Land In Ikorodu Lagos

In my years of experience as an investor and a consultant in real estate, I have invested in Osun, Ibadan, Abuja, and Lagos, but I have noticed a pattern.

And everyone I have consulted for always come back with one testimony: “Thank God I bought with you”.

This is because real estate is beyond just buying land. It is about finding land that is good for investing for all kinds of uses.

If you will be buying land in Ikorodu, let me show you 5 things you must consider before you pay for the land:

1. Location

Ikorodu is wide (a part is in Lagos State, the other part is in Ogun State) but it is also densely populated. It is currently one of the two cities within Lagos to have more than 1 million people within it.

This means that there are many people on little land. And this is where you should be careful.

Because you see a massive population doesn’t mean that the place is good to buy.

Instead, look out for locations within Ikorodu with these characteristics:

Good road network
Growing (not large) population especially for land banking
Amenities such as schools, markets and hospitals
Good land titles

The advantage of buying this type of property is that you can buy at a lower price and sell for a high price when the area eventually explodes.

Another big advantage is that you can develop it for your personal use.

These simple places allow you to raise your family in a serene environment far away from the hustle and bustle of the central Ikorodu area near the Garage and the Oriwu Central Mosque.

2. Your Target Market

Now this option is for investors but you can also read it if you want to grow your knowledge.

If you want to invest in Ikorodu, you must understand your target market as an investor first.

If you want to build commercial real estate like a row of shops or a shopping complex, you will have to buy land closer to where many people live. And that would be more expensive.

But if you want to buy land that you can resell to families looking to settle, you can go to the suburbs with characteristics that I described above.

When you buy this kind of land, you keep it till it appreciates and then you can sell it off at an interest.

Here are some amazing ideas you can execute in the developing parts of Ikorodu

Restaurant and bar
Hotel
Schools
Shops for building materials

If you know your target market, you will be able to decide on the place you want to buy land in Ikorodu.

3. Cost of Building and Maintenance

If you are a family person or a real estate investor who has found a spot, my first advice for you is to sit down and calculate every penny you will need.

See, building a house and developing real estate is not child’s play.

You can rush in and not be able to complete your house

You can start developing a storey building and go broke at the decking level.

To avoid these troubles, you must first consider the amount you can commit to developing your land every month.

If you are a salary earner, how much percent can you drop monthly?

If you are getting a government grant or loan to develop property, can it cover the kind of property you have in mind?
Would you need to draw another plan that will fit your budget?

Always consider the money factor, it is too important!

4. Legal Considerations

Lagos is called the land of wisdom for a reason. You must understand the legal implications of every single move you make when buying land, especially if you are buying from families in places like Ikorodu.

This is not an attempt to paint them as bad people but you have to be very careful when you transact.

After you find the land you want to buy and you meet the family, make sure you collect all the land documents with your lawyer present.

One of the legal sides that many people overlook is the approval stage.

When you buy from a family, one man cannot approve the transaction.

He may be the family head but he must get the approval of the decision-making elders in the family too.

If you buy without full consent from all the necessary people, your land can still be taken from you and you will have no defence in court.

In this next subtopic, I will also show you all the land documents that you must get from the land owners to show that you now truly own the land and are entitled to enjoy and even sell it.

4 Documents to Consider When Buying Land in Ikorodu, Lagos

“What documents should I ask for when buying land?”

I get this question a lot and here is a simple answer…

If you want to buy land from a family or a real estate agent, these are 4 vital documents you must ask for and ensure that you get.

If you can't get them complete, just walk out of the deal. It will save you a truckload of trouble in future:

1. Deed of Assignment

I put this one ahead of the rest because it is the most important of all the documents.

You can have the remaining three documents and still lose your land if you don’t have your Deed of Assignment.

The deed of assignment is a document that shows you the buyer and the seller.

It clearly shows that the seller (assignor) has permanently transferred the title of the property to the buyer (assignee).

2. Survey Plan

The Survey Plan is a document that shows details of your land such as

Size
Boundaries, and
Location (Coordinates)

You are required to register this document at The Office of the Surveyor-General.

As a result, anybody can check to see if the government or a private individual owns your land.

With that, you can avoid issues of multiple sales of land that has already been bought.

3. Purchase Receipt

This is evidence that you already paid for the land.

When the buyer pays the full cost of the land to the seller, the seller will then issue the receipt.

The receipt is important because you will need it to register your land at the Land Office.

4. Certificate of Occupancy / Governor’s Consent

The C of O shows that the law recognizes the buyer as the owner of the land.

It is issued by the Governor, acknowledging that you have taken an interest in land in that state.

By law, the governor holds the land on your behalf. But with a C of O, the governor transfers the statutory right of ownership from his office to the individual buying the land.

But if you are buying land from someone who already has a C of O, you won’t need to get another one.

You will only need the Governor’s Consent on your Deed of Assignment.

5 Reasons to Buy Land in Ikorodu, Lagos

If you have any doubt about buying Land in Ikorodu, here are five reasons that you should change your mind:

1. Infrastructural Developments

Ikorodu is growing rapidly thanks to major infrastructure projects including the proposed Fourth Mainland Bridge. This project aims to connect Ikorodu directly to other parts of Lagos Mainland and Lagos Island.

As a result, people can come in and out of the city faster than ever before, thereby increasing the number of residents that the city will have over time.

By default, the value of any property you buy today will increase when the project is complete.

Additionally, the Lagos State Government has approved the establishment of a new NYSC permanent orientation camp in Ikorodu.

This development will attract an influx of officials, corps members, and other businesses.

This will be a big chance to invest in residential, commercial and recreational real estate.

2. Affordable Land Prices with High Appreciation

Unlike many other parts of Lagos, Ikorodu offers relatively affordable land prices. These allow you to buy low and sell high even on a tight budget.

And as the area keeps developing, property values will appreciate and turn out more RoI over time.

3. Proximity to Major Economic Hubs

Ikorodu is central to economic centres like Maryland, Mile 12, and even Sagamu in Ogun State.
Because of this proximity, it can grow to be one of Lagos’ biggest innovation hubs attracting investors and expatriates.

Also, with the completion of the Fourth Mainland Bridge, the city will have direct access to the Island, opening it up to greater strategic opportunities.

4. Education Industry Growth

Ikorodu hosts several reputable educational institutions, including Lagos State University of Science and Technology and Caleb University.

This assures of a steady flow of populace who make up tenants, hence increasing chances for housing and commercial real estate.

Even more, you can invest in commercial real estate such as hotels, restaurants, clubs, and bars.

For instance, Domino's Pizza, ColdStone, KFC, and Tasty Fried Chicken all have branches in Ikorodu.

5. Robust Transportation Networks

Ikorodu has a well-developed transportation network that includes smooth roads and excellent water transport options which are being improved daily.

This connectivity links it to various parts of Lagos and even surroundings such as Ogun and Ibadan.

This increases its attractiveness to people looking to settle away from the busy city centres such as Mile 12 and Ikeja.

3 Common Mistakes You Must Avoid When Buying Land in Ikorodu, Lagos

As I already mentioned, you must look for all ways to secure your investment. Here are 3 common mistakes I have noticed that buyers make and that you should avoid:

1. Not Doing Legal Due Diligence

One of the biggest mistakes you can make when buying land in Ikorodu is to neglect to do your legal due diligence.

Make sure you hire a lawyer who has a history with land cases and can advise you on the specific steps you need to take to protect your land.

You can also engage a real estate company that has a track record of integrity when buying land in Ikorodu.

This is the best way to protect your land from any future legal battle that can shake the foundation of your land security.

2. Not Budgeting

It is easy to get bamboozled by the prospect of buying low and selling high in a place like Ikorodu.

But you need to calculate other costs aside from your purchase amount. These can include

Cost of documentation
Cost of perimeter fencing, and
Maintenance fees

If it helps, you can hire an accountant to build a detailed financial plan for you. These help you to create a sustainable investment strategy.

3. Rush

The riskiest mistake you can make as a land buyer in a place like Ikorodu is to make decisions in a hurry.

Many people do this because they “don't want to miss out on an opportunity”. As I already mentioned, take your time to count the cost.

Research the kind of property you want to buy.

Know the location you want to buy in based on the market that you want to sell to.

If you are a family person, scout locations that will help you to raise your family peacefully.

Tick all the boxes so you won't have regrets later.

READ: Real Estate Investing for Beginners in Nigeria: The Complete Guide

Finally, As You Go On To Buy Land in Ikorodu

Buying land in Ikorodu can be a profitable investment, but only if you take the right steps to protect your interests. Here’s a quick recap of what you need to keep in mind:

Choose the Right Location – Prioritize areas with good road networks, growing populations, and essential amenities.
Know Your Target Market – Whether you’re buying for personal use or investment, understanding the demand will guide your decision.
Plan Your Budget – Account for land costs, documentation fees, and development expenses to avoid financial strain.
Ensure Legal Protection – Verify land ownership, collect necessary documents (Deed of Assignment, Survey Plan, etc.), and consult a lawyer.
Avoid Common Mistakes – Don’t rush, neglect legal due diligence, or underestimate costs.

By taking the time to research, plan, and seek expert advice, you can secure a profitable and stress-free land investment in Ikorodu.

by Tayo Aladetoyinbo

When to Buy Real Estate in Nigeria

Real estate investing can be time sensitive. Therefore, when to buy real estate in Nigeria is one of the best questions to ask.

Real estate in Nigeria appreciates rapidly, and the savviest investors buy before the market rush.

To make smart investments, consider factors such as location, accessibility, funding, market trends, and legal documentation.

Invest early to secure high returns!

When Should You Buy Real Estate?

The best time to buy real estate is now.

In my years of experience as a real estate investor, I have noticed that people miss out on opportunities because they do not start early.

Real estate appreciates fast. But the difference between savvy investors and the rest is that they can identify which property develops faster.

However, they do not stop there… They also buy these properties before the market rush begins.

In this article, I will be showing you

When to buy real estate in Nigeria
How to identify good investment locations early enough
Factors to consider when choosing a preferred location
3 of the most viable investment locations in Nigeria currently

When to Buy Real Estate in Nigeria

These factors will show when to buy real estate. If you can get it right at the start, you won’t need to worry about your investment bringing the most returns eventually.

Here are 5 Seasons to Buy Real Estate in Nigeria

Before the Property Enters the Market

Have you ever heard of buildings or land that are on prelaunch sales? These kinds of properties promise to be very profitable.

Popularly known as off plan arrangements, this property can be up to 5 to 20 million naira or more when it enters the market.

This type of investment is popular because developers use this time to raise funds, so they usually make the price lower for investors.

If you are savvy enough to buy into this arrangement, you can get huge RoI when the property starts selling for its real value set by the developers.

2. When It Is Available

Land is limited. The same size of land that was available when the population of the world was 2 billion, is still the same size of land available now when the population is at 8 billion.

Whenever you see that a new location surfaces, buy it when it's still available.

For instance, when Epe in Lagos State emerged, there was huge availability unlike now.

Note, properties will always be available no doubt but it's better to be the first comer in the market rather than buying when it's already expensive.

3. When the Market is Experiencing a Downtime

The average person sells properties when the market is crashing because of fear of losing everything.

Usually, they sell at the exact cost price rather than selling at the market price all because they do not want to lose their money in a “bad” market.

When you see people selling at these prices, don’t panic. Keep your own property. Then buy theirs if you can afford it.
When the market bounces back (as real estate always does), you can then sell it at a profit!

4. Buy now

The real truth is that real estate always appreciates, especially in fast growing locations.

It's often said that you should not wait to buy real estate, but buy real estate and wait.

Now is the time to buy. But make sure you buy right. In the next subheading, I will be showing you 6 factors to consider when you want to buy real estate.

5. When There Are Golden Opportunities

There are many situations where you can get properties at great prices. some of these include

Foreclosures by banks
Auctioned properties which were impounded by the government
Subsidized housing schemes: These were created by the government to reduce investors’ spend when building properties that will be beneficial to community growth.

6 Factors to Consider When Buying Real Estate in Nigeria

As I mentioned earlier, purchasing real estate in Nigeria requires you to be savvy when evaluating your options.

Here are some key factors that will help you make smart choices and grow a profitable investment portfolio:

Location and Accessibility

The location of your property directly affects the value and the appeal of your property.

Areas that are closer to essential amenities such as schools, hospitals, markets, and public transport systems tend to have higher demand.

These properties also have faster appreciation rates.

So, if you want to invest in land in Nigeria, look for rapidly developing areas that generate high RoI.

The idea behind accessibility is that it attracts residents who intend to settle in the area because they can access day-to-day utilities like water and electricity.

2. Funding

One of the first things you must do before you dive into the real estate market is to assess your financial readiness.

If you want to start buying with your own money, are your earning and saving enough yet?
If you want to take loans from banks, are you creditworthy enough?

These are some of the questions you must ask yourself first.

Create a realistic budget that covers the purchase price, as well as other additional costs like legal fees, survey plans, and agency commissions.

Avoid overstretching your finances. Understand that property finance is a long-term commitment that requires sustainable funding.

3. Market Factors

The real estate market in Nigeria is highly dynamic because of fluctuating market prices due to supply, demand, and economic conditions.

To get an idea about this, research the recent value of property in your target location. Also, check to see the demand for properties in that area.

These factors will help you determine your capital input and it will influence your expected RoI eventually.

A simple example is buying property to resell. If your target buyer market is less than age 24, you should not go for an Ikoyi residence.

Instead, it will pay you better to buy land that is more affordable for them to buy even after you add your interest.

4. Government Policies and Regulations

Get to know government policies that affect real estate in Nigeria, such as land use laws, taxation policies, and housing schemes.

The Land Use Act, for instance, regulates property ownership. This makes it important to confirm the legitimacy of the property title.

Also, take advantage of any government incentives, such as affordable housing programs. It helps you to cut down costs and maximise returns.

5. Purpose of Investment

It is vital to understand why you want to buy the property.

Are you purchasing to live in it?
Are you getting the land to lease out a farmer while it gathers interest?

Do you want to hold your investment for long-term capital gains?

If your target is rental income, simply focus on areas that have high tenant demand, such as

Urban centers
Regions near universities and corporate hubs
Suburbs away from city centres which are more affordable for people who want to relocate to

If your goal is to develop and sell, prioritise locations that have the potential for rapid economic growth or infrastructural expansion.

6. Legal Documentation and Verification

Nigeria’s real estate market can be very fraudulent when it comes to transactions and land title.

When you want to buy real estate, ensure that the property meets the following criteria:

Has property documentation such as Deed of Assignment and Certificate of Occupancy (C of O)
There is vivid possession. If you are buying from a family, make sure you are transacting with the lead of the family and that they have the backing of the principal members of the family.

Always engage the services of a qualified real estate lawyer to conduct due diligence, verify ownership claims, and confirm the property is free from encumbrances or litigation.

Documents You Must Look Out For When Buying Real Estate in Nigeria

One of the most effective ways to safeguard your property is by having proper legal documentation. These documents not only confirm ownership but also protect in the event of legal disputes.

Here are essential documents every real estate investor in Nigeria should be familiar with:

1. Deed of Assignment

This is probably the most critical document in any property transaction. It officially transfers ownership from the seller to the buyer and serves as the legal confirmation of the property sale.

2. Certificate of Occupancy (C of O)

Issued by the state government, the C of O confirms that the land is no longer owned by the state. TI shows that the possession of such land has been transferred to an individual or a legal entity for a specified period, typically 99 years.

3. Governor's Consent

Contrary to popular belief, the Governor’s Consent is not automatically included with a C of O. This document is necessary for reselling a property. It is the state’s way of acknowledging and approving the transfer of a property within the state from the owner to the buyer.

4. Survey Plan

The survey plan outlines the property’s boundaries, size, and coordinates. It ensures that the property aligns with government-approved layouts.

It is registered with the office of the state’s Surveyor General.

5. Land Purchase Receipt

This document serves as proof of payment for the property, confirming that the seller has received the agreed-upon amount for the transaction.

6. Deed of Lease

For leased properties, this document outlines the terms and conditions of the agreement between the owner and the tenant, similar to a deed of assignment.

7. Building Plan Approval

Obtaining building plan approval ensures that any construction on the property complies with local zoning laws and building regulations.

Where to Buy Real Estate in Nigeria

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.

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, these are the secrets you should know before buying land in Lagos.

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:

Epe
Ikorodu
Badagry
Ibeju-Lekki

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

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.

Here are other top cities in Nigeria where you can invest in real estate with high return on investment.

Final Thoughts: When to Buy Real Estate in Nigeria

The best time to invest in Nigerian real estate is right now.

Procrastination can make you miss opportunities in this fast-growing market. Whether you're targeting residential, commercial, or recreational property, the key to success is to

Identify prime locations early
Evaluating market trends, and
Secure proper legal documentation.

With hotspots like Lagos, Abuja, Port Harcourt, and Ibadan showing immense potential, there’s no better time to take action.

Start small, plan strategically, and watch your investment grow into a profitable portfolio.

Your future self will thank you!

by Tayo Aladetoyinbo

This image is about real estate investing for beginners in Nigeria

Real Estate Investing for Beginners in Nigeria: The Complete Guide

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If you are reading this article, "real estate investing for beginners in Nigeria," I guess you want to start real estate investing in Nigeria or you want to add to your existing knowledge about real estate investing.

The truth is that the best time is now.

Nigeria is currently facing one of the biggest housing crisis in Africa.

With an estimated 21 million housing deficit, the country needs to build more than 500,000 houses annually for the next four decades to meet this demand.

While this poses a big challenge to the government, it opens a big opportunity for real estate investors.

But if you are still asking “Why should I invest in real estate in Nigeria?”, let me show you.

Beyond the obvious demand for housing, Nigeria's 223 million population is the largest in Africa…and this has caused a serious urbanization problem.

Cities like Lagos, Abuja, and Port Harcourt are expanding rapidly, creating high demand for residential and commercial properties.

Real estate investing is not just important as a means of catering for the population. It is becoming a source of wealth creation and economic growth in Nigeria.

In this article, I will guide you on how to get into real estate investing in Nigeria.

Whether you’re interested in land banking, rental income, or property development, the real estate market offers opportunities for everyone. You don’t have to be a seasoned investor. You can start from being a beginner with a modest budget.

READ: BEST PLACES TO INVEST IN REAL ESTATE IN NIGERIA

Types of Real Estate Investments in Nigeria

Real estate investment is more than just buying properties and selling them. There are different ways to go about real estate investing in Nigeria.

It ranges from buying undeveloped land for future appreciation to investing in commercial properties that generate steady income.

Whether you want to create passive income, diversify your investment portfolio, or secure your financial future, here are 7 types of real estate investment in Nigeria:

1. Land Banking

Land banking is one of the simplest ways to start real estate investing as a beginner in Nigeria. This form of real estate investment involves purchasing undeveloped land and holding it until it appreciates.

It is popularly called land banking because it is synonymous with leaving money in a fixed deposit account that will gather interest over time.

Here are some of the benefits of land banking in Nigeria

It requires very little capital to start. Compared to other developed properties, land is relatively cheaper to buy and hold.
Land banking also has the potential of a higher return on investment, especially in fast-growing areas such as Epe in Lagos, Gwagwalada in Abuja and Ido in Ibadan.
Low Maintenance Cost: You can do land banking without spending a dime on maintenance besides creating a beacon (cornerpiece) and coming around frequently to check on your land.

However, while land banking has these great benefits, there are some things that you should take note of. These include:

Location: When land banking, it is crucial to buy land with a fast growth rate which can give you returns between three to five years. While it is great to bank your land, you do not need to wait for up to 10 years before you start making money from selling it.
Know Your Land Documents: You need to understand which land documents show your ownership and title to the land so you can avoid legal disputes in future.

The most important of these documents is the Deed of Assignment which shows that the owner of the property has decided to transfer all his rights to the property to you. The Certificate of Occupancy, on the other hand, is the government's transfer of the right of occupancy of the land.

READ: SECRETS TO KNOW BEFORE BUYING LAND IN LAGOS

2. Residential Real Estate

Another profitable way to start real estate investing as a beginner is residential real estate. This includes apartment buildings such as self-contained apartments, duplexes, and short-let accommodations that can give you consistent income and capital appreciation over time.

Here are some popular options for residential real estate investment:

Types of Residential Real Estate

Long-term rental

With long-term rental, you build an apartment so you can rent it out for 1 year or more.

This is the most popular rental style in major cities in Nigeria. Your return on investment is the rent you get from your tenants.

However, unlike land banking, residential real estate involves more capital base to cover construction, documentation, publicity, and maintenance.

Short-term rentals (Airbnb and serviced apartments)

This is the opposite of long-term rental and it is also becoming quite popular in major cities such as Lagos, Abuja and Port-Harcourt.

In this kind of investment, you list your properties for short-term stay between 48 hours to 2 months.

It is usually rented out to people like travelers, tourists, content creators, and expatriates whose reasons for using the property are not permanent residential ones.

One big advantage of short-term rental is that you get your value back in a shorter time as short-lets tend to cost more to rent than standard long-term rentals.

But just like with long-term rentals, you need to set up adequate documentation that will define the length of the stay, the events the property can be used for, and how the property can be used.

You also will need to state the legal implications for the breach of the agreement such as the non-refunding of the security deposit in case of damage to the property.

Off-plan property investments

Off-plan investments are a more recent trend in the Nigerian real estate investment landscape.

It involves buying units of a property even before the property is completed based on the architectural plan and 3D rendering of the property.

It is popular where you have a single block of building with several apartments in it. When you buy a part of this apartment, it is like owning a share of the property.

Then you can profit off it when the rent for such an apartment is paid to you.

What to Consider Before Investing in Residential Real Estate

When investing in residential real estate, you need to consider factors such as:

Setting up rental terms of use for all kinds of properties
Managing your tenants to keep your property in good shape and respect other terms of your agreement
Property maintenance such as repairs of major faults like a main water pipe burst can directly affect the livelihood of your tenants
Security responsibilities to protect your tenants from external threats such as armed robbers and neighbourhood thugs.
Market demand for homes. Where there is a history of less demand for property in the area, you should not invest. However, if you are convinced of a surge in demand, you may go ahead and invest.
The number of competitors in the same area will affect how much you should invest. Where you have few competitors, you can build more apartments. But where you have lots of competitors within a small area, you might just create a few apartment spaces.

3. Commercial Real Estate

Commercial real estate includes office spaces, shopping complexes, warehouses, malls, and industrial buildings leased to businesses for official uses.

Upon completion, commercial real estate is one of the most profitable real estate investments. This is because it offers higher rental yields compared to residential properties.

Businesses tend to pay more rent because they make profits, unlike standard residents who do not use their apartments for money-making purposes.

Also, commercial real estate offers a more stable form of investment as it offers longer lease terms with businesses.

However, unlike residential real estate, this form of investment requires a keen understanding of economic growth factors. If there is an economic downturn and businesses are unable to either pay or renew rents, it may be more adaptable to go for other types of real estate investments.

Also, you need a bigger capital base to set up a strong commercial real estate portfolio. This is because offices need larger spaces that come with better (and smarter) features that their customers will appreciate.

For instance, you may only provide a space for hanging a ceiling fan in a home but you need specialized spaces for air conditioners in an office space.

4. Real Estate Investment Trust

If you do want to escape the issues that come with owning and managing a property, REITs are a great place to start!

REITs are a smart investment style where funds from different investors are put together to acquire, manage, and generate income from various real estate assets such as residential, commercial, and industrial properties.

These funds are shares and the returns on them are derived from rental income, property appreciation, and capital gains.

REITs have great promise in the Nigerian real estate landscape. In 2023 alone, the niche recorded an impressive ₦‎2.16 billion in rental income. This shows the sector’s profitability as well as its potential for increase and consistent RoI.

Types of REITs in Nigeria

Equity REITs

These REITs specialize in owning and managing income-generating properties such as residential estates, office buildings, and shopping malls. Investors earn through rental income and long-term property appreciation.

Mortgage REITs

This sector focuses instead on providing financing for property owners and developers. Mortgage REITs earn income through interest on property loans.

Hybrid REITs

Hybrid REITs combine the properties of both equity and mortgage REITs. Thus, investors can benefit from both property income and mortgage interest earnings.

Advantages of Investing in REITs

Passive Income Generation

Investors receive regular dividends from rental earnings without the hassle of managing properties.

Diversification

REITs offer exposure to wider options of properties, reducing investment risks.

Liquidity

Unlike traditional real estate, REIT shares can be easily bought and sold on the stock exchange, providing flexibility to investors.

Professional Management

The operations of REITs are managed by experienced property managers who oversee the acquisition, maintenance, and leasing of assets, ensuring optimal returns.

Tax Benefits

In compliance with Nigerian regulations, REITs enjoy tax advantages, including reduced corporate tax rates and tax-exempt dividends for investors.

Challenges of REIT Investment

While REITs provide numerous benefits, you should be aware of its potential risks, such as:

Market Volatility: Since REITs are traded on the Nigerian Stock Exchange, their value can fluctuate due to market conditions.
Limited Control: Investors do not have direct influence over the properties or management decisions.
Regulatory Risks: Changes in government policies and real estate regulations may impact the performance of REITs.

Steps to Invest in REITs in Nigeria

Research and Select a REIT

Study the performance, asset portfolio, and management team of listed REITs.

Open a Brokerage Account

Purchase REIT shares through a licensed stockbroker on the NGX.

Monitor Performance

Regularly track rental income reports, financial statements, and market trends to optimize your investment strategy.

Reinvest Dividends

Consider reinvesting dividends to maximize compounding returns.

5. Property Development

This is one of the most lucrative real estate investment options in Nigeria. It covers the purchase, construction, renovation, sale, and leasing of properties for profit.

Property development is the bedrock of most types of real estate investment.

It offers investors the opportunity to make value out of land by transforming it into profitable residential, commercial or mixed-use real estate assets.

However, unlike many other types of real estate investment, property development requires more detailed planning, larger financing, and a better knowledge of the industry.

But if you want to start property development in Nigeria, there are steps you must follow:

Key Steps to Property Development

Market Research

Conduct in-depth feasibility studies to understand the factors such as demand, your potential ROI, and the suitability of your location.

Acquire Land

Buy the land in your chosen location. However, ensure that you have legal verification and proper documentation such as a Deed of Ownership and Certificate of Occupancy to avoid future legal disputes over the property.

Project Planning

Collaborate with architects and engineers to create building designs that fit your budget. Be sure to align your structure with the local regulations and building codes of the area, if any.

Financing

Get resources to fund your project. You can either start with personal savings, get bank loans, enter into partnerships or use REITs.

Construction and Development

Work with professionals to start constructing. Use realistic timelines and set up a feedback system to ensure timely and quality execution of the project.

Marketing and Sales

Get in touch with real estate agents to bring in tenants or buyers. You can also use digital platforms or any other reliable promotional strategies to attract using real estate agents, digital platforms, and promotional strategies to attract your target market.

Benefits of Property Development

Property development has a higher potential for capital appreciation and rental income.
Gives you full control over your investment decisions.
Unlike REITs where you have limited choices, property development allows you to customize the property to meet the demands of your market.

Challenges of Property Development in Nigeria:

Despite its benefits, property development in Nigeria comes with challenges such as

High capital requirements
Bureaucratic regulatory processes
Fluctuating market conditions, and
Infrastructure limitations.

Tips for Success:

Always start with smaller, manageable projects to gain experience.
Use trustworthy partners and experienced real estate developers and professionals.
Keep track of regulatory requirements and other permits that are necessary to keep your work smooth.
Conduct all legal and financial due diligence to reduce risks.

6. Property Flipping

Overpopulation in urban areas in Nigeria has led to poorer housing conditions, hence the demand for better living conditions. This is where property flipping comes in.

Here, investors can purchase properties at below-market prices, make strategic renovations, and resell the properties at a profit.

With Nigeria having a housing deficit of 21 million units, this demand for well-renovated properties promises to drive RoI for investors interested in undervalued properties.

As an investor, you can achieve returns of 20% to 50% or more, depending on factors such as location, renovation quality, and market conditions. Popular areas for flipping include Lagos, Abuja, and Port Harcourt, where property values appreciate rapidly.

Key Steps to Successful Property Flipping

Market Research: Carefully identify high-demand locations with growth potential and affordable properties.
Property Acquisition: Negotiate for distressed properties, foreclosures, or auctioned homes at favourable prices.
Strategic Renovation: Focus on cost-effective improvements that enhance property value, such as modern interiors and energy-efficient features.
Effective Marketing: Utilize online platforms like Jiji, Facebook and Instagram to attract potential buyers.

Challenges and Risks of Property Flipping in Nigeria

Despite its high profitability, house flipping carries risks such as

Fluctuating market prices
High renovation costs
Cost of marketing
Legal complexities with the transfer of ownership

However, if you do your due diligence and work with professionals, you can get proper estate valuation as well as authentic documentation to avoid any further risks.

7. Cooperative Real Estate Investment

Cooperative real estate allows individuals—especially civil servants and low to middle-income earners—a collective means of investing in property. It is very related to REITs.

On the contrary, members of a cooperative real estate investment pool resources to acquire, develop, and manage real estate assets while having direct control over the property.

The ease that comes with this type of real estate investment is that it allows you to own property without bearing the full financial burden individually.

How Cooperative Real Estate Investment Works

Cooperative societies, often registered entities, provide members with structured payment plans to invest in residential or commercial properties.

These investments can take various forms, including

Direct property acquisition
Land banking
Shared ownership of rental properties.

Usually, members pay a monthly instalment or any other form of periodic payment. The cooperative entity then handles the property procurement, legal documentation, and sometimes, management.

Benefits of Cooperative Real Estate Investment

Affordability

Spreading payments over time makes property ownership accessible to members of the cooperative who have limited capital.

Risk Reduction

Collective investment minimizes individual exposure to financial loss and market fluctuations.

Access to Prime Properties

Cooperatives often negotiate better deals, allowing members to invest in prime locations at lower costs.

Professional Management

The cooperative handles property development, tenant management, and maintenance.

Challenges of Cooperative Real Estate Investing in Nigeria

Cooperatives, despite their numerous benefits often come with several challenges such as

Poor management by the leadership of these societies
Lack of transparency with resource allocation
Delayed property delivery can arise, especially because other members of the society have delayed payments.

It's best to join reputable cooperatives that have a proven track record of smooth delivery. Also, choose ones with efficient management of properties as well as clear legal structures that allow for transparency and accountability.

Key Factors to Consider Before Investing in Nigerian Real Estate

Before venturing into real estate, it’s essential to evaluate several factors to ensure a profitable investment:

1. Location and Accessibility

The location of your property is one of the biggest factors that determine its value and potential returns. Pick areas with these features as they improve the value of your property:

Rising population and increased high demand for properties
Good infrastructure such as roads that can increase accessibility
Proximity to essential services such as markets, schools, hospitals, and shopping centres.

If it helps, do well to visit the location to check for the traffic conditions and to see if it is prone to flood.

2. Title and Legal Documentation

Ensure that the property has a valid title to avoid future legal disputes. Do your due diligence to avoid being scammed as a result of insufficient documentation. Here are some ways to verify the property’s title:

Take the coordinates of the land to the Land Office of the state you are buying in
Confirm the availability of key documents such as the Deed of Assignment, the Certificate of Occupancy (C of O), and the Survey Plan.
Engage the services of a qualified real estate lawyer to conduct a thorough title search

3. Market Trends and Economic Factors

Observing market trends is the point where you become not just an investor but an entrepreneur. Look out for the demand for property in the area you are investing in.

Also check for economic factors such as inflation, exchange rates, government policies, and the earning power of your target audience.

Here are some other economic factors you should look out for:

Past and current property price trends.
Economic reports and real estate market insights.
History of property demand in your target location.

4. Developer's Reputation

If you are investing through REITs or cooperatives, be sure to look out for the credibility and the track record of the property developer who is managing your investment property.

These factors will show whether they will deliver timely and quality work for your money. Here are some ways you can assess your developer’s work:

Research their past projects and client reviews.
Visit their completed and ongoing projects to assess construction quality.
Check if the developer has the necessary government approvals and certifications.
While they are working on your property, you can make frequent visits to see their on-the-ground performance and work rate based on your agreed timeline.

5. Financing Options and Affordability

Real estate can make you a lot of money, but you also have to invest some money to start. It is crucial to explore financing options that align with your financial capabilities. You can:

Research available mortgage plans from banks and financial institutions.
Compare interest rates and repayment terms that fit your budget.
Create a detailed budget to account for hidden costs like legal fees and maintenance.

6. Security and Neighborhood Environment

No resident or business person will want to live or work in an unsafe location so you have the responsibility to check out for the crime rate and stability of the area you are investing in.

Also, where there is a lot of crime, the value of your property can be negatively impacted as there would be low or no demand for it.

Here are some ways you can check for the security of an area:

Speak with residents and the local police branch to assess crime rates.
Measure the presence of security measures such as gated estates, police stations, and surveillance systems.
Consider the potential impact of environmental factors like flooding.

7. Property Inspection and Structural Integrity

If you are directly buying built properties for flipping, resale, or management, it is important to inspect your property for its structural integrity. If you fail to check, you can incur very expensive repair or rebuilding costs.

Do your due diligence by doing these:

Hire a professional surveyor or structural engineer to inspect the property.
Check for common issues such as foundation and wall cracks, plumbing and pipe leak problems, and electrical faults.
Inspect the building materials to see if they are durable enough for the weather used to ensure durability.

8. Rental Yield and Return on Investment (ROI)

If you are an investor looking to earn annual rental income, it’s important to evaluate the potential rental yield by

Comparing rental rates in the area to estimate your income potential.
Calculating expenses such as property management, maintenance, and security fees.
Assessing long-term appreciation potential based on the rate of development in the same environment as yours.

9. Government Policies and Regulations

Real estate investments are subject to various laws and regulations. These laws such as the Recovery of Premises Act, Cap 544 LFN 1990, the Lagos State Tenancy Law 2011, and the Rivers State Tenancy Law, 2012 can impact your relationship with tenants, your ownership rights, taxation, and development.

Be sure to

Get to know state laws that concern your property.
Comply with tax requirements, including property tax and capital gains tax.
Stay updated on government initiatives such as affordable housing schemes so you can take advantage of them.

10. Hidden Costs and Maintenance Expenses

Sometimes, investors can focus on the purchase price and overlook other ongoing costs that are associated with owning a property. Instead, focus on

Budgeting for costs such as taxes, insurance, and service charges.
Planning for unexpected situations such as renovations and repairs.
Working with experts and professionals will streamline your maintenance costs.

11. Resale Potential

Everything about real estate investment is RoI. So, from the outset, propose your investment strategy to plan for resale. You can do this from the start by:

Choosing locations that tend to appreciate more.
Investing in properties that meet a different audience. This way, you can repurpose a property to attend to another audience if one is no longer viable.
Considering factors such as future urban development plans.

Why Invest in Real Estate in Nigeria?

There are many benefits of investing in Nigerian real estate that should drive you to get started today:

1. Steady Cash Flow

The real estate sector tends to generate consistent rental income. With the increasing housing deficit and the demand for residential and commercial properties, you can earn passive income as an investor through rent payments.

If you want to get the cash flow out of real estate, start by identifying high-demand areas such as Lagos, Abuja, Port Harcourt, and other major Nigerian cities to invest in rental properties that promise steady returns.

2. Capital Appreciation

Unlike most assets, real estate hardly ever depreciates, especially in prime locations.

Look out for areas with ongoing infrastructural development and population explosion. These types of locations with growth potential help to maximize long-term capital gains.

3. Hedge Against Inflation

Because real estate can keep appreciating, it is a good asset to hedge against inflation. While living costs rise, property values also increase. As a result rental income also increases and this ensures that your investment retains its value over time.

As an investor, you need to keep an eye on economic trends such as inflation and foreign exchange to adjust your rental pricing and also strategize your investment accordingly.

4. Portfolio Diversification

Adding real estate to your Investment Portfolio can help to diversify and reduce the risk that comes with fluctuations in other asset classes like bonds and stocks and more recently, cryptocurrency.

You can also explore different types of real estate like residential commercial and land banking to increase your chances of balance while diversifying.

5. High Return on Investment (ROI)

When you invest in fast-growing urban areas, real estate offers a high return on investment. This is because, unlike many other investment options, the demand for real estate consistently outweighs its supply.

However, you have the responsibility to conduct thorough market research to find an area with demand and a greater potential for appreciation.

6. Greater Control Over Asset

Unlike stocks and bonds, real estate is a tangible asset that you can physically inspect, develop, and manage. You have full control over decisions such as renovations, rent adjustments, and property sales.

However, if you cannot do it all by yourself, consider working with professional property managers who can help you watch over your properties and maximize the value of your investment.

7. Government Incentives and Policies

Real estate investment helps you leverage the Nigerian government’s several policies that encourage investment in the sector.

Some of these include the National Housing Fund (NHF), tax incentives, and public-private partnerships.

These programs and incentives help you reduce costs and widen your profit margin.

Steps to Start Real Estate Investing in Nigeria

Whether you're a first-time investor or looking to expand your portfolio, you need to carefully plan for every stage of your investment so you can achieve long-term success.

This is a routine I follow for every real estate project I want to undertake and it has helped me several times:

1. Define Your Investment Goals

Before you start investing in Real Estate you need to determine what you want to achieve. Are you looking for passive rental income or long-term property capital appreciation?

You may also choose to go for quick returns from property flipping.

Write down your short-term and long-term goals, considering factors like budget, target locations, and expected ROI.

2. Conduct Market Research

If you want to achieve success in the Nigerian real estate market, you need to make smart and informed decisions. Do well to research fast-growing areas, demand for property, legal regulations, and all the risks attached to your investment type.

You can use online platforms like property listing sites, market reports, and real estate blogs like this one you're reading to gather the data you need.

You can also talk to real estate agents in the area who will share live insights about the viability of real estate investment in the area.

3. Choose the Right Investment Type

After you factor in your goals for real estate investment, feel free to choose the particular investment option that you want to execute in the area. As I mentioned above, there are multiple options you can pick from including:

Land Banking
Residential Properties
Commercial Properties
Short-Term Rentals
Real Estate Investment Trusts (REITs)

4. Secure Financing

Your next step will be to find Capital to start your investment. You can use various means including:

Personal savings
Bank loans
Cooperative societies
Mortgages as well as partnerships.
Cooperative societies
Joint Ventures

5. Work with Real Estate Professionals

Real estate is a wide-ended sector. You will need to get as much guidance and support from professionals no matter how experienced you are. Some of these professionals include:

Real Estate Agents
Lawyers
Surveyors
Property Managers
Accountants
Building contractors

6. Conduct Due Diligence

Before you finalize the purchase of a property, it's important to verify the legitimacy of the property and the seller. Here are some things that you should look out for:

Land titles (C of O, Governor’s Consent, etc.)
Prior encumbrances or disputes
Physical condition of the property
Development plans in the area

7. Manage Your Property Effectively

Effective property management covers regular maintenance, timely rent collection, and compliance with housing laws. However, you should not restrict yourself to these.

Also, optimize your property to include management that can help you to maximize profitability. These efforts should include:

Renovations
Expansion (if you have extra land space)
Upgrades (attaching newer fixtures and fittings to increase your property’s value)
Partnership

Challenges of Real Estate Investment in Nigeria

Investing in Nigerian real estate comes with a set of challenges. Understanding these peculiar situations helps you to reduce risks and maximize returns.

1. Land Ownership Disputes

Land ownership disputes are common in Nigeria due to inadequate documentation, multiple claims of ownership, and fraudulent sales.

In the southwestern parts, there is also the problem of land grabbers (also known as omo onile). A notable case is Erinosho v Owokoniran (1965), a legal case where conflicting claims over a parcel of land led to a prolonged legal battle.

To avoid these situations, it is best to

Do your due diligence by checking your document validity at the Land Office.
Engage legal professionals
Partner with only trustworthy professionals

2. High Cost of Property Development

Due to the high rate of inflation, the cost of labour, building materials, and regulatory fees that are increasing, you might seek solutions such as

Leverage public-private partnerships by using government incentives for subsidized development.
Find instalment plans that allow phased payments. This reduced your upfront costs.

3. Bureaucratic Bottlenecks

Obtaining approval for property development can be time-consuming. To skip this red tape, it is best to work with local experts and leverage technology like the Lagos eGis Portal so you can skip repeating visits to physical offices.

Also, explore other investments that require minimal regulatory interference like short-term rentals.

4. Security Concerns

When developing and managing properties in Nigeria, there is a high risk of insecurity. This can result in you losing tenants and future buyers.

You can reduce this risk by investing in secure locations, using up-to-date security systems like surveillance cameras and hiring security guards.

Also, consider investing in gated communities with robust security infrastructure.

5. Economic Instability

The fluctuations in the Nigerian economy as a result of inflation and foreign exchange volatility have affected property value and rental income. This can reduce the economic capacity of your tenant to pay rent and even the ability of your investors to pay their dues.

Here are some smart ways to secure yourself against economic instability in real estate investing:

Diversify your investment across multiple real estate sectors. This will help you to reduce dependence on just one single area to generate RoI for you.
If you're dealing in high-end properties, it is best that you lease in foreign currencies like dollars or euros to make a hedge against Naira's volatility.
Focus on properties that are recession-proof such as education and healthcare.

Major Documents You Should Know Before You Invest in Real Estate in Nigeria

One of the biggest factors of real estate success is the security of your property. And one of the best ways to protect your property is to have good legal documentation that will protect you in case of any legal battles in future.

Here are some important documents every investor must know:

1. Certificate of Occupancy (C of O)

This document is issued by the state government. It legally confirms land ownership the state no longer owns the land. As a result, ownership is transferred to the new buyer by the state governor for a specific period, typically 99 years.

2. Deed of Assignment

The Deed of Assignment is probably the most important document you could strive for. This is because it is the only document that transfers title from the seller to the buyer, confirming the sale of the property.

3. Survey Plan

This outlines the property's coordinates (locations), size, and boundaries, ensuring it aligns with government-approved layouts. It is usually submitted to the Surveyor General in the state where the land or the property is located.

4. Governor's Consent

Many people think that this automatically comes with a C of O. No. The Governor’s Consent is required for property resale with a C of O. It is the state’s acknowledgement of the transfer of transfer of ownership.

5. Deed of Lease

This is similar to a deed of assignment for leased properties. It clearly defines the terms and conditions of property use between the owner and tenant.

6. Building Plan Approval

This ensures that the property construction complies with local building regulations and zoning laws.

7. Land Purchase Receipt

A proof of payment you get from the seller that shows that they have received your payment for the land or property bought.

Note: If you are buying from a family or community, ensure that the signatory is unanimously agreed upon by all the decision-makers in the family or community.

This creates a legal backup for you in case of the contest for the land in future.

8. Power of Attorney

This is used where you have someone in charge of your property. It grants authority to this representative to act on your behalf in legal or financial matters. Most times, this document is given to a lawyer or a professional property manager.

9. Tax Clearance Certificate

This confirms that you have fulfilled your tax obligations to the state, as a property owner. As such you are free from any future liabilities that may arise from not doing so.

10. Letter of Allocation

This is issued for government-allocated properties. It clearly confirms the rightful owner and property details.

8 Common Mistakes Beginners Make That You Should Avoid

In my experience as a real estate investor in Nigeria, I have seen people make so many mistakes that cost them either their property or some hefty legal fees. Here are 7 most common pitfalls that you must avoid to ensure a successful real estate investment experience:

1. Skipping Due Diligence

Many beginners fail to verify the authenticity of property documents and the ownership status. This can lead to fraud and many other legal implications.

Before you finalize a purchase, always meet a lawyer and other experienced professionals such as relevant authorities to verify these documents.

I already highlighted all the documents above. Read through and check for the ones you do not have based on the type of real estate property you own.

2. Ignoring Market Research

Investing without understanding market factors such as market trends, property appreciation rates, and demand can result in poor investment decisions.

Research high-demand areas and also consider factors like infrastructure development and economic growth before investing.

3. Keeping Non-Paying Tenants

Allowing non-paying tenants to stay too long can destroy your investment. It often starts with a minor delay—excuses like unpaid school fees or salary delays. But it can spiral into years of lost revenue.

If you were a bank, you'd reclaim your property without hesitation; apply the same principle to protect your investment. Cash flow is key to survival as an investor.

Make sure you do the following to keep your rent intact and your tenants in check:

Set and Enforce Eviction Rules

Clearly communicate eviction policies from the start—your rules are your rules!

Follow state tenancy laws for eviction notice periods (e.g., Lagos Tenancy Law):

1-week for tenants at will
1-month for monthly tenants
3-months for quarterly tenants
6-months for yearly tenants

Act Legally and Quickly

Initiate eviction proceedings once rent arrears reach legal limits (e.g., 6 months for monthly tenants, 1 year for quarterly tenants).

File for possession and rent recovery in court if needed.

Protecting your property isn't being heartless; it's smart investing. Your financial security and future depend on it. So, act decisively.

4. Avoid Emotional Attachment to Property

Real estate is business, not sentiment.

Focus on factors that help you sell your property and not just the visually appealing things. While aesthetic features like flowers may attract residential real estate buyers, but they won’t matter if your target market consists of business owners looking for offices.

Prioritize locations with a rising population, especially family-friendly areas, and ensure accessibility with good road networks.

Do these before you start investing to avoid emotional attachment

Know Your Target Market

Clearly define your ideal buyer and evaluate properties through their perspective. Also create a customer avatar, considering profiles like:

A family with four kids needing space and schools nearby.
A student with roommates seeking affordability and proximity to campus.
A remote-working bachelor valuing peace and connectivity.

Invest Based on Demand, Not Preference

Choose properties that align with market needs rather than your personal taste. Focus on aspects that influence long-term value, such as infrastructure, security, and economic growth potential.

5. Paying to a Land Owner’s Representative NOT Real Owners

When looking for land, you may go through a real estate company or a property manager to get to the owners of a property. But this is the point that most investors make the mistake of paying the real estate company or the supposed “agent”.

This kind of situation is mostly encountered by people who are not living close to the place they want to acquire land- like someone who lives abroad.

This person may innocently find a real estate company to scout for good land in a choice location but the land may not belong to the company.

Many Nigerians in the diaspora and other foreigners have complained of being duped for their money. I have received many calls and messages with stories of people who get scammed of their millions for trusting the wrong person with their money.

Sometimes, my hands are tied because these scammers have devised smart ways of covering their tracks.

They can incorporate and close a company in less than one week all because of one deal.

They can also open and close a bank account in the same period just to close a scam deal.

So, every time you can’t confirm the identity and authenticity of a company, DON’T GO INTO ANY PURCHASE DEAL WITH THEM.

Instead, find the owners of the property and pay directly to them. If you will use the real estate company as an intermediary, ask them to connect you with the land owners who can then hand over their commission to them.

6. Giving Your Property Without Payment

Sometimes, as an investor who is into land banking, you may permit someone especially an artisan (e.g., mechanics, block makers) to stay on idle properties for security. This can be a very critical mistake in real estate.

Allowing someone to occupy your property without collecting rent can make you face legal issues later.

If the landowner passes away, the occupant may falsely claim ownership, rent out portions, or deceive potential buyers. And because the occupant has stayed long enough on the land, the community will perceive that they own the land, making legal battles challenging.

The best solution to this is to:

Charge Rent (Even If Small)

Always collect rent, no matter how minimal. This helps you to establish a formal arrangement and it also proves your ownership of the property. See, your rent can be so small, but make sure it is paid. For instance, if the standard rent is N180,000, consider charging 10% to maintain control.

Draft a Written Agreement:

Clearly define the duration of stay, rent amount, and payment method (bank transfer, cash deposit, etc.). Also, include an exit clause to reclaim the property when needed. Ensure that your lawyer is fully aware of this agreement.

Keep Payment Records

Maintain proof of all payments via bank transfers or deposits for legal defence. Avoid cash payments unless properly documented with receipts and witnesses.

7. Not Defining Investment Goals

Don’t do real estate investing because you heard that “there is money there.”

Instead, invest with a clear goal in mind. Do you want rental income, resale, or long-term appreciation?

Skipping your goals can result in poor decision-making and reduced returns. Set clear investment objectives before purchasing any property.

8. Failing to Work with Professionals

Attempting to navigate the real estate market alone is like diving into an Olympic-sized without any swimming experience.
Do well to consult agents, meet with lawyers, and discuss with surveyors. Sometimes, their little advice is what will save you from costly mistakes.

Now is the perfect time to take action!

Whether you’re a beginner or an experienced investor, the Nigerian real estate market presents endless possibilities for growth.

Start small, stay informed, and build your portfolio one step at a time.

Conclusion: Everything You Need to Know About Real Estate Investing for Beginners in Nigeria

Investing in real estate in Nigeria is a pathway to wealth creation and long-term security. It offers vast and promising opportunities such as land banking, residential properties, commercial spaces, or innovative investment options like REITs and cooperative real estate.

However, you must consider key factors such as location, legal documentation, market trends, and financing options before you make an investment decision.

Throughout this guide, we have explored

The different types of real estate investment opportunities available in Nigeria, from land banking, which offers low capital entry and high appreciation potential, to property development.
Rental properties, commercial real estate, and REITs—each offering unique advantages and challenges.
The need for quality market research, working with reputable professionals and drafting a clear financial and legal plan.
Challenges such as land disputes, regulatory hurdles, and financing constraints can be mitigated with due diligence and strategic planning.
The major documents you need for a successful real estate investing
Common real estate investing mistakes that you must avoid like a plague

Now is the perfect time to take action!

Whether you’re a beginner or an experienced investor, the Nigerian real estate market presents endless possibilities for growth.

Start small, stay informed, and build your portfolio one step at a time.

by Tayo Aladetoyinbo

Best Places to Invest in Real Estate in Nigeria

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.

Lagos: The commercial hub and real estate hotspot

Photo of Lagos. The first best place to invest in real estate in Nigeria is Lagos

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 is a best place to invest in real estate in Nigeria 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

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

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!

by Tayo Aladetoyinbo

Secrets to Know Before Buying Land in Lagos

Do you want to buy land in Lagos? This article is about what to know before buying land in Lagos before you commit your money, time, and energy.

As of 2024, Lagos was the 5th richest city in Africa. The average real estate investor will see these figures and decide to buy land in the city.

But it is very risky to rush into real estate investment and to make mistakes in it because the money involved is usually big.

In this article, I will show you:

What to consider when buying land in Lagos Nigeria
5 mistakes you must never make when buying land in Lagos
Documents to consider when buying land in Lagos

Why Should You Buy Land in Lagos?

Lagos state is the economic powerhouse of Nigeria
It has a GDP (Gross Domestic Product) of about ₦41.17 trillion
It has a major port for Nigeria and West Africa
Lagos is Nigeria's largest commercial, industrial, fashion, and innovation hub
It's the 5th richest city in Africa

5 Things To Consider When Buying Land And Other Properties In Lagos Nigeria

As a real estate expert, I meet a set of people online and offline every other month. They always come to me crying that they were duped when buying land in Lagos.

Your hard-earned money deserves more than to be carted away by dubious real estate investment.

Here are 3 things that you must consider if you want to invest in buying land in Lagos.

Location

Location is one of the most vital things to consider before you buy land in Lagos. There is the Mainland, there is the Island. You must understand how the real estate market works in your target investment location so that you can make smart investment decisions.

You need to know about the average cost of land and other properties in the area as well as the perceived resale value in that area.

Whether your investment will appreciate fast or slow is all dependent on the location.

Knowing a location helps you to consider the infrastructure and amenities available within the community. This includes the proximity of the land to the market, the highway, and good schools. You should also check to see if the land is prone to flood.

When you see that there is a flood problem, don't buy it!

Another special tactic I advise investors to use is to directly network with the community in which they want to invest or engage a professional. Many times, you don’t get real information online in Nigeria, You have to get into the business of finding out yourself and a professional can do that for you.

Interacting with the community or a professional can help you find amazing off-market land deals or insider knowledge on upcoming developments that could directly impact the value of property in the area.

All of these factors can directly impact the value and appeal of your land in the future to leasees, buyers, or other investors.

Also, do your due diligence to know the legal and regulatory frameworks that surround land ownership in Lagos. You should know how to obtain permits, pay taxes, create lease agreements, and also prepare for any other legal headaches that come with investing in Lagos real estate.

2. The Nature of Your Market

As of 2022, Lagos had over 15 million residents. That is huge for a small state and it shows how dynamic that market can be. However, the presence of a huge population does not equate to the availability of demand for land in specific areas of the state.

For instance, if you buy land to build a residential property near a market that is heavily commercial, you may be targeting the wrong audience. Instead, you should have bought the land in the quieter residential parts of the area.

This is one of the many things know or consider when buying land in Lagos.

Another example is to study the kind of property that appeals to certain locations. Ikoyi and Lekki lands appeal to luxury real estate buyers. Ikorodu, Badagry, and Epe cater to people who want to develop property for middle-income earners.

As an investor, you must align your investment goals to meet your needs and budget or the needs and budget of the audience you want to reach.

3. Specific Industry Trends

After knowing what the market needs, you also need to know what the real estate industry offers per time. You must understand new provisions of real estate laws as soon as they are amended.

Look out for government policies, infrastructural development, and global economic conditions that can either boost or reduce your real estate ROI in the future.

For example, the Lagos Red Rail will have a direct impact on real estate demand on the mainland.

However, while it may look attractive to invest in high-end areas like Ikeja, Agege, and Yaba, it may be better to look for other options in Agbado, Ikorodu, Badagry and Iju which have more available land and are less expensive to purchase.

These tiny real estate trends and statistics in land price movement and resale yields can make huge differences when buying land and other properties in Lagos.

4. The Financial Aspect of Property Investment

One of the important reasons you must research your target location and market is to help you discover the financial implications of investing.

From your research, you must be able to create a budget that will cover costs such as your initial purchase price, cost of property maintenance like perimeter fencing, property management fees such as security, insurance, and other local taxes.

A financial plan guides you through the duration of your investment and keeps you prepared for expenses that you have not planned for.

Another thing you should consider is the potential real estate return on investment (ROI). Be sure to calculate your expected income against your total investment to determine if the property is financially viable.

Research the average current resale prices and value of property in the area. Also, consider factors that could affect future rents, such as possible natural occurrences, economic outlook, and local developments.

Also, discover the market’s historical performance. This gives you insight into what you expect as the yield from land appreciation over time.

Lastly, consider the financing options available to you. Will you be able to get a loan? If you do, do you have a good collateral? What interest rate are you comfortable with and what banks provide these rates?

Calculate how much you can afford to borrow as a company while considering your down payment, your investment expenses, the ongoing cost, and your expected projections for the land.

5. Legal Considerations When Buying Land in Lagos

Understanding the legal landscape of Lagos real estate property investment will help you get a smooth transaction and also secure your investment.

The first step is to understand the various types of land ownership available in Nigeria, such as freehold and leasehold.

Freehold ownership gives outright ownership to you as the owner of a land. On the other hand, leasehold ownership only transfers ownership rights for a specified period as agreed between a lessor and a lessee.

Knowing the difference between these two concepts will help you make informed decisions regarding property purchases.

It's also important to conduct due diligence on the property before finalizing the purchase.

Verify the ownership of the property.

Ensure that there are no legal disputes or encumbrances on the land or property.

Use a reputable real estate lawyer to guide you through your transactions. They see things from a different perspective and help you navigate legal pitfalls when drafting and reviewing contracts.

Obtain all necessary permits and approvals. Also, be aware of the the property tax and other fees that are attached to owning a land within Lagos

Read: best places to invest in real estate in Nigeria

5 Common Mistakes to Avoid When Buying Land in Lagos

As established, the Lagos property market is huge but as an investor, there are mistakes you must avoid so you can get the best out of the market when investing in Lagos real estate:

Neglecting Due Diligence

One big mistake real estate investors make is neglecting to do legal due diligence. As I mentioned earlier, hire a real estate lawyer that has a history with cases.

Preferably, use a lawyer whose service you trust and whose decision you can always rely on. The best way to avoid any future legal battle is by having a strong legal foundation.

2. Buying directly from Omo Onile (indigenous land owners)

Lagos real estate is porous especially when you buy directly from the indigenous land owners. Yes, it can be cheaper to buy directly from them but I can assure you that you'll pay more eventually and you can still end up losing the land and your money.

The most painful part is that it's difficult to recover your money as you may not have anybody to arrest or sue.

Instead of buying land from Omo Onile, I advise you buy from a reputable real estate company that has a person or people of integrity behind the brand.

3. Not Using Professionals

Finding your way around land acquisition, especially in Lagos can be a daunting task. You need the help of professionals like a lawyer, a surveyor, and a real estate agent to navigate your way into buying a problem-free land in Lagos.

Hiring professionals does not come without a cost but in the end the cost is worth it.

4. Failing to Budget

Sometimes, the thrill of profit-making blinds investors when it comes to buying land. They do not consider expenses from research, purchase, perimeter fencing, and maintenance fees.

Hire an accountant to create a detailed financial plan with you. Let it contain both your initial purchase costs and ongoing expenses so you can have a sustainable investment strategy.

5. Hurried Decision-Making

Lastly, some investors may rush into a purchase due to the fear of missing out on a perceived opportunity. This impulsiveness leads to poor decision-making and regrets later.

Take your time. Research till you are sure. Evaluate your options. This reduces your likelihood of making choices that will ruin your investment in the future.

Read: top 9 cities to invest in Nigeria

Documents to Consider When Buying Land in Lagos

When you buy land in Lagos, there are 4 vital documents that you must have to secure your investment. You can present these land documents in future if there is a contest over the ownership of the land:

Deed of Assignment

I put this first because it is the most important of all the documents. If you have the remaining three and you don't have the Deed of Assignment, someone else who has it can easily claim ownership in court.

The deed of assignment is a document that shows the final agreement between the buyer and the seller.

It is the only document that shows the permanent transfer of title from the seller (assignor) to the buyer (assignee).

2. Survey plan/layout

The Survey Plan shows specific details of your land such as its size, boundaries, and location. You are required to register it at The Office of the Surveyor-General so it can be referred to in future to know if the land is owned by the government or by a private individual.

3. Purchase Receipt

This is evidence that you paid for the land. It is given from the seller to the buyer to show that they were paid for the land. Before you can register your land at the Land Office, you must produce your receipt.

4. Certificate of Occupancy/Governor’s Consent

The C of O shows actual ownership under the law. It is issued by the Governor of the state, acknowledging that interest had been taken in one of the lands in that state.

The governor transfers the statutory right of ownership from his office to the individual buying the land.

However, if you are buying the land from someone who already has a C of O, you would not need to obtain another. You will only need the Governor’s Consent on your Deed of Assignment.

Final Thoughts on Buying Land in Lagos

Buying land in Lagos can be as exciting as it is profitable. Prospective buyers are always available around the clock.

But you can only be successful at real estate investing in Lagos when you:

Research your target location
Do your due diligence about the land
Discover and leverage industry trends
Know the total financial costs of your investment
Tick all the legal boxes before you sign the papers

Don’t make the mistake of investing in a hurry or not making a budget.

By applying the smart tips outlined in this article, you can begin your real estate investment in Lagos with confidence and assurance that your money will yield a good returns and your investment will be protected.

by Tayo Aladetoyinbo

Real Estate

7 Mistakes to Avoid When Buying Land in Ikorodu

Introduction

READ: what to know before buying land in Ikorodu

7 Common Mistakes to Avoid When Buying Raw Land in Ikorodu

1. Neglecting Due Diligence

Meet the Landowner

Go to the Land Office

Local Research

2. Overlooking Proper Documentation

3. Skipping Professional Surveys

4. Ignoring Zoning Regulations

For every state, there are specific local zoning regulations. If you want to buy land in Ikorodu, you need to follow regulations that apply to Lagos State in the Lagos State Urban and Regional Planning and Development Law.

The law specifies peculiar issues such as

5. Failing to Conduct Physical Inspections

6. Disregarding Infrastructure Development Plans

7. Falling for Unrealistic Deals

4 Documents To Consider When Buying Land in Ikorodu

1. Deed of Assignment

2. Survey Plan

3. Purchase Receipt

4. Certificate of Occupancy / Governor’s Consent

Final Thoughts on 7 Mistakes to Avoid When Buying Land in Ikorodu

What to Know Before You Buy Land in Ikorodu

4 Things To Consider When Buying Land In Ikorodu Lagos

1. Location

2. Your Target Market

3. Cost of Building and Maintenance

4. Legal Considerations

4 Documents to Consider When Buying Land in Ikorodu, Lagos

1. Deed of Assignment

2. Survey Plan

3. Purchase Receipt

4. Certificate of Occupancy / Governor’s Consent

5 Reasons to Buy Land in Ikorodu, Lagos

1. Infrastructural Developments

2. Affordable Land Prices with High Appreciation

3. Proximity to Major Economic Hubs

4. Education Industry Growth

5. Robust Transportation Networks

3 Common Mistakes You Must Avoid When Buying Land in Ikorodu, Lagos

1. Not Doing Legal Due Diligence

2. Not Budgeting

3. Rush

Finally, As You Go On To Buy Land in Ikorodu

When to Buy Real Estate in Nigeria

When to Buy Real Estate in Nigeria

When Should You Buy Real Estate?

When to Buy Real Estate in Nigeria

Before the Property Enters the Market

2. When It Is Available

3. When the Market is Experiencing a Downtime

4. Buy now

5. When There Are Golden Opportunities

6 Factors to Consider When Buying Real Estate in Nigeria

Location and Accessibility

2. Funding

3. Market Factors

4. Government Policies and Regulations

5. Purpose of Investment

6. Legal Documentation and Verification

Documents You Must Look Out For When Buying Real Estate in Nigeria

1. Deed of Assignment

2. Certificate of Occupancy (C of O)

3. Governor's Consent

4. Survey Plan

5. Land Purchase Receipt

6. Deed of Lease

7. Building Plan Approval

Where to Buy Real Estate in Nigeria

Lagos: The commercial hub and real estate hotspot

2. Abuja: the capital city and emerging real estate market

3. Port Harcourt: the oil-rich city with investment potential

Final Thoughts: When to Buy Real Estate in Nigeria

Real Estate Investing for Beginners in Nigeria: The Complete Guide

Real Estate Investing for Beginners in Nigeria: The Complete Guide

Types of Real Estate Investments in Nigeria

1. Land Banking

2. Residential Real Estate

Types of Residential Real Estate