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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
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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:
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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
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Lagos: The commercial hub and real estate hotspot
Lagos is practically the capital of commerce in Nigeria, and this makes it a convenient location for people to live in.
The city has a vibrant economy fueled by several sectors including technology, finance, entertainment, and manufacturing.
This diversity causes a huge demand for residential properties, especially for workers.
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.
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!