I have seen people complain that they are not just making enough money from their real estate investment.
There are many reasons for this, but the main thing is that they did not invest in the type of real estate that makes the most money in Nigeria.
Nigeria’s real estate market is unique because it is growing faster than the systems that sustain it. This means there are loopholes you can access to make money.
But only a few loopholes lead to real and lasting profit.
In this article, I will show you
- 6 real estate investments you can do to make the most money in Nigeria
- How to jump from liquid to profitable in Nigerian real estate
- What you can do to start these investments
1. Development Projects: Big Risk, High Reward
When you see real estate companies buy barren land and build apartments on it, that is what a real estate cash cow looks like. These properties they develop will eventually sell for millions!
Imagine buying a 600 sqm plot of land in Ajah for ₦30M and building 4 duplexes on it at ₦30M each!
Altogether, you’d have spent ₦ 150 M. If you sell each of these properties at ₦70M, you’d make a whooping profit of ₦130M!
Why is Development a Great Investment?
- You can add value by turning land into livable property.
- The demand for housing is always increasing in Nigeria.
- Multiple construction allows you to sell in bulk and get bulk returns
However, real estate development is best for investors with high capital. But if you cannot afford this deal by yourself, you can engage in Joint Ventures with landowners and other property developers to pool resources and get lasting results.
Read Also: Proven Step-by-Step Method to Invest in Nigerian Real Estate
2. Luxury Real Estate: The Niche That Pays Big
One thing surprises me about Nigeria today… Despite having one of the worst economic phases in the history of the country, the luxury market is booming! There has been a steady rise of high-brow areas like Ikoyi, Banana Island, Lekki Phase 1, Asokoro, and Maitama.
Some of these high-end properties can bring in returns of ₦15M–₦30M/year. And some of these sell for as high as ₦200M and above!
What Makes Luxury Real Estate Profitable?
- It offers a high profit margin for every sale
- It appreciates faster in resale value because of its scarcity
- Because of its location, it attracts more corporate and high-paying tenants
However, just like real estate development in Nigeria, luxury apartments require a very high entry cost. They are also costlier to maintain!
Also, if you want to build a luxury property in Nigeria, you must be ready to refine the building to the highest taste and brand your company as a respectable luxury front.
Lastly, you can never work alone on luxury real estate. You must have strong networks that will show you what to do, how to do it, and also add to your capital!
Here are some of the leading luxury real estate companies in Nigeria today.
- Sujimoto
- Luxury Redwood
- Lekki Luxury Homes
Please, note that this is not an endorsement for any of them. Kindly do your due diligence before patronizing any of them.
3. Short-Let Rentals (Airbnb Style)
These are Airbnb-style apartments that you mostly find in cities like Lagos, Abuja, and Port Harcourt. These apartments have witnessed an explosion in demand, mostly because of an increase in weekend stays, relocations, and business travel.
Imagine charging ₦50,000 per night for a 1-bedroom apartment in Lekki. That’s ₦1.5M/month at full-month occupancy.
And yes, some people occupy these kinds of properties because they get a better feeling of control and comfort than a hotel.
How Do Shortlets Make Money?
- Offers a higher income than traditional rent
- The daily and weekly payment structure allows for more profit flow
- It is easily scalable with multiple units
There are two big challenges with this short-let rental style:
- It is costlier to manage and maintain
- You need to add an extra touch of hospitality, which standard rentals don’t require
4. Commercial Real Estate: Consistent Cash Flow
This is another very profitable real estate investment channel. You can rent out office spaces, event centres, warehouses, and shops to get recurring rent.
One of the most attractive facts about commercial real estate is that you need less emotional management compared to managing residential tenants, who can be more difficult.
Some warehouses near Mile 2 or Apapa lease for ₦5M–₦10M/year, depending on size and access.
Why Commercial Real Estate Makes Money
- Longer lease terms (often 3–5 years)
- Lower maintenance needs than housing
- Tenants tend to default less because they are corporate tenants.
Just like the other real estate types on this list, this form of real estate also requires high capital input. So, if you don’t have enough capital base, you should partner with people who do.
Also, a commercial real estate property is only suited for high-demand commercial zones. For instance, a warehouse in Ikorodu may not be a good investment, but an office space in central Abule-Egba or Ogba will be a wise one!
5. Land Banking: Quietly Building Wealth
This is where most Nigerians can start, especially if you’re working with lower capital.
Land banking is simply buying land in undeveloped or semi-developed areas and waiting for the area to develop fully, then selling at a premium price. Some buyers also develop properties on their land later.
For instance, plots in Epe were selling for ₦500K in 2020. Today? ₦3M and rising — thanks to the Lekki-Epe Expressway, the planned new airport, and other government projects like the Fourth Mainland Bridge.
Why is Land Banking Profitable?
- It requires little maintenance.
- Land is always appreciating.
- Can bring you up to 400–800% return in 5–10 years
Pro Tip: Look for land with good titles and buy before road or other projects begin. This is where true ROI hides.
Read Also: Secrets You Should Know Before You Buy Land in Lagos
6. Real Estate + OPM (Other People’s Money)
One secret weapon real estate millionaires use to grow in real estate is leverage — using other people’s money to invest.
You can:
- Use real estate installment plans
- Partner with friends/family to buy land
- Find good land and get buyers, then get commission
- Invest in Joint Venture (JV) projects
- Get cooperative loans or pension-backed loans
Imagine paying an instalment of ₦300K per month for 10 months for a plot in Omu-Ketu!
That’s land ownership without one-off ₦3M.
Why OPM is Good
- OPM scales your real estate portfolio faster
- Reduces upfront burden
- Allows you to earn while still paying
Warning: Make sure the property is verified and documented before entering a flexible plan.
Profitability vs. Liquidity — Know the Difference
Most people confuse “fast money” with “good money.”
Let me show you an example with this table comparing the top types of real estate investment you just read:
| Investment Type | Profit Margin | Speed of ROI | Capital Required |
| Land Banking | High | Slow (2–5 years) | Low |
| Shortlets | Medium–High | Fast (monthly) | Medium |
| Development Projects | Very High | Medium | High |
| Commercial Leasing | Medium | Slow | High |
| Luxury Property Sales | High | Medium | Very High |
You don’t always need to move fast.
Sometimes, steady wins the race — especially in land investing.
Final Thoughts: So, Which Real Estate Type Pays the Most?
- Short-term gain: Shortlets, luxury sales, and development
- Long-term wealth: Land banking and commercial rentals
- Low-capital option: Land + OPM strategy
- High-capital wealth build-up: Full development and joint ventures
The truth is that all real estate types can pay out huge sums of money… but it is all about where you are starting and where you want to get to!
You don’t need ₦50 million to win in real estate.
You need strategy, verified land, and support from people who know what they’re doing.
I’d suggest that you read this post to also discover mistakes to avoid as you invest in Nigerian real estate.
Ready to Start?
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You can join hundreds of others who are now building their real estate wealth in high-growth areas with instalment payment plans and full documentation.
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