For the longest time, the naira has consistently fallen against the dollar in foreign exchange performance. And the question on the lips of many is how profitable is real estate in Nigeria considering the state of the economy…

Nigeria is currently experiencing one of the most challenging economic phases in its history. For the longest time, the naira has consistently fallen against the dollar in foreign exchange performance.

Because of this, inflation catches up with people’s investment so fast that the interest may not even cover that at the end of the investment cycle. And this is why many Nigerians are looking for alternative ways to invest their income.

One of the most reliable ways so far is real estate investment. But how profitable is real estate in Nigeria?

Every day, on social media, you see agents and developers talk about real estate… But is it truly the next big thing on Nigeria’s investment scene?

In this post, I will show you 

  • What makes an investment profitable
  • Whether or not real estate is profitable 
  • Whether or not you should invest in real estate in Nigeria

What Does “Profitability” in Real Estate Investment Mean?

If you describe real estate profit, there are 4 ways you should look at it:

1. Appreciation

This is the direct increase in the value of the land or property over a period of time. For instance, if you could have bought a plot of land for N400,000 in 2023 and it is now valued at N1,000,000 in 2025. 

Your profit is automatically N600,000. That’s a 150% increase on your investment!

So, that’s one way you look at it. Own a property, and wait for a considerable time. And you will see the value of the property increase faster than you could ever imagine!

2. Cash flow

Many real estate investors don’t stop at just buying land or property. They take it a step further and either develop the land or renovate the building.

Then they rent it out to tenants.

The rental or lease income from this property is another way you can make a profit in Nigerian real estate.

3. Inflation Shield/Equity Storage

Sometimes, you may not always make money back from your investment immediately.

But your investment can help you protect the strength of your capital. Earlier in this article, I showed you how the naira has lost its strength greatly over the years.

If you saved N200,000 five years ago, you will probably have the same amount or a little more than that when you come five years later.

But if you strategically invest in real estate, you cannot come back to the same amount. This is because land in Nigeria is forever appreciated.

You should read my post: Is Real Estate a Good Investment for Nigerians in the Long Run? 

In that article, I talked about what makes it seem that real estate in Nigeria keeps adding value every year.

4. Utility

There is a feature of real estate that makes it so amazing compared to other investment channels. It cannot be moved.

Yes, real estate is something you can’t transport. If you buy it today, you can go for 10 years and still return to it without any problems.

In those 10 years, a bank can close down

In those 10 years, you can lose a crypto wallet

In those 10 years, a car will lose its value

But real estate will always be there for you! As long as you protect your land with effective documentation, you can always come back to it and use it for any purpose- building, leasing, farming, or resale.

You should read this article: What is the Future of Real Estate in Nigeria?

So, Is Real Estate in Nigeria Really Profitable?

Yes. The answer is simple.

Real estate all across Nigeria is very profitable. And this profitability is not only in Lagos or Abuja. 

Across the country, land has appreciated greatly over the past 10 – 20 years. Let me show you why and how:

How Has Land Grown Over the Years in Nigeria

  • Epe and Ikorodu

These two areas blew up “unexpectedly”. Ikorodu was once considered an outskirt of Lagos state and became a real estate hotspot after the Lagos-Ikorodu Expressway was built. 

Epe was also another town known only for fishing until the Lekki-Epe Expressway was built. 

These two areas grew rapidly, all because of public infrastructure projects!

  • Ibeju-Lekki

This was another hidden gem in Lagos. Ibeju-Lekki blew up when announcements such as the construction of the Lekki Deep Sea Port and the Dangote Refinery came to the open.

This shows that private investment can also push real estate growth. 

  • Kubwa and Kuje

These areas used to be ghost towns in Abuja. 

But when the cost of living in central Abuja rose, people began to find nearby towns to buy and develop their residential houses.

So, when next you see mass immigration to a particular place, you should know that spot promises lots of profits.

  • Ilorin and Enugu

Again, if you notice, I am not restricting your knowledge to only Lagos and the big parts of Abuja.

Places like Enugu and Ilorin benefited from the huge population of university students who are constantly in need of a place to reside.

Over 51% of Nigeria’s population is between the ages of 15 – 34, and many among these are still attending universities either for undergraduate or postgraduate studies.

This is another pointer to what makes Nigeria’s real estate ever-growing!

 

What Drives This Growth?

I have said this before already. Many factors drive real estate growth in Nigeria, but I will highlight 5 major ones here:

  • Development

New roads, railways, and ports such as the Lekki-Epe Expressway, the Idu railway, and the Enugu-Onitsha Expressway 

  • Public-private estate partnerships

Projects like the Dangote Refinery, the Odogunyan Industrial Estate, and public-private residential estates have opened up many hinterlands like Lekki, Ikorodu, and Igando. 

  • Returnees and diaspora buyers 

Many people don’t know that many Nigerians in the diaspora contribute to real estate growth! Many Nigerians abroad buy real estate in huge numbers back at home, and this greatly contributes to real estate growth than you can imagine!

  • Institutional expansion (e.g, schools, hospitals, markets)

Wherever you find a university, public secondary schools, hospitals, and markets, you will surely see crazy real estate growth.

A place like Ife in Osun State saw a crazy increase in land value when OAU students began to live off-campus more from 2017.

Today, some plots in that place are worth up to 8 million naira! All because of the presence of a university!

  • Migration

States like Ogun, Nasarawa, and Ibadan have benefited directly from migration. This happens when people move away from an overcrowded city centre like Ikeja in Lagos to settle in a less crowded place like Ikorodu.

And now that Ikorodu is becoming crowded and expensive, some other people are relocating to places in Ogun State like Omu, Ibafo, Sagamu.

Now, to the question on your mind…

How Long Does It Take to See a Profit When I Invest in Real Estate?

I will keep this short so you can understand better: real estate isn’t a quick get-in-get-out game. But it is one of the most reliable investment channels out there today. Let me show you a breakdown:

  • Short-term (1–3 years)

 If you want to get returns within the first 3 years of investment, you will have to invest in places that are more exposed to development. 

As a result, you will spend more, but you will get more RoI within a shorter time.

  • Mid-term (4–7 years)

This is possible where you have invested in areas that are not too remote but are opening up to development fast.

An example is Ido in Ibadan. The growth in Ido has been steady. But it cannot be compared to a place like Epe or Omu, which promise faster and bigger RoI within a shorter time frame.

  • Long-term (10+ years)

Now, this is where I used to ask people to be very patient. This kind of real estate may be so deep inside the bush that you may not even remember where you bought it. The tactic for buying the type of real estate is to buy it on good authority.

For instance, you may have heard that the government has planned a huge university to be built in a town in Ondo in 2037. You will just go and buy like 20 acres around that zone.

Just watch, if you spent 3 million on those acres, you can make up to 10 – 15 times that amount in 10 years!

Read Also: How Real Estate Makes Money in Nigeria

Profit vs. Risk: What Makes Nigerians Lose Their Money

With real estate, there is no profit without proper planning. It is impossible. But many  Nigerians dabble in real estate without knowing the details, and this is why they lose money!

Here are 5 ways that I have seen people lose money over time. And I will advise you to avoid them:

  • Buying land without verifying the title
  • Choosing areas with no development plans
  • Falling for deals that are too good to be true
  • Ignoring building regulations in the state
  • Buying because of peer pressure or because they want to “feel among”

I wrote more on this here: 14 Mistakes You Must Avoid As a Nigerian Real Estate Investor 

What Makes a Location Profitable?

When making your decision to invest in real estate in Nigeria, here are some key factors in Nigeria that you should consider:

  • Proximity to major roads or bridges
  • Within a zone that is close to major cities, where more people live
  • Near universities, hospitals, or government institutions
  • Inside a planned estate area that already has buyers
  • Under  government-led development plans

Top 10 FAQs on How Profitable is Real Estate in Nigeria

1. Is real estate more profitable than stocks or crypto in Nigeria? 

Yes, especially for long-term security. Land value rises with inflation; crypto and stocks are volatile.

2. Is land or housing more profitable?

Land is easier to start and manage. Housing generates rental cash flow but requires higher capital.

3. Can I buy land with ₦500k or ₦1M?

Yes, in peri-urban areas with flexible payment plans.

4. Will land appreciate without development nearby?

Not likely. Look for roads, schools, or announced projects before buying.

5. What documents should I check before buying?

When buying real estate in Nigeria, whether land or building, look out for these documents: 

  • Registered Survey
  • C of O or Gazette
  • Deed of Assignment
  • Allocation Letter

6. Can I lease my land without building?

Yes. You can lease out your land for uses such as farming, storage, or billboard space, depending on location.

7. How do I know a developer is legit?

  • Check their CAC registration.
  • Ask for RC number
  • Visit their past project sites
  • Check their social media channels for real followers
  • Confirm their physical office and online presence (website)

8. What if I buy and don’t develop for years?

No problem—as long as your documentation is intact. The land still gains value.

9. Is there a risk of being scammed?

Yes, if you don’t verify documents or deal with unregistered sellers.

10. Is now (2025) still a good time to invest?

Absolutely. Many states are currently undergoing infrastructure expansion, and land demand is rising.

 

Read Also: 7 Must-Have Land Documents in Nigeria

 

Final Thoughts on how profitable is real estate in Nigeria: How to Get Started

Take a look at all the criteria for fast growth I mentioned in this article. Go over them one by one, then find a real estate spot that ticks all the boxes. 

After this, you can set your real estate investment goal. E.g., I want to make 55M from real estate investment in 7 years from now with just the N5M I currently have.

Once your goal is set, find a trustworthy real estate company to find you properties that fit your goal. Then, start investing!

Feel free to send us a message with any questions or thoughts on Instagram @possilaproperties. We will be happy to guide you!