Beginner’s Guide to Real Estate in Nigeria: Everything You Need to Know
- Zikan Realtors
- Oct 13
- 4 min read
Beginner’s Guide to Real Estate in Nigeria: Everything You Need to Know
Entering the Nigerian real estate sector can feel intimidating, especially for newcomers. Yet with the right preparation, strategy, and awareness, you can move confidently. In this Beginner’s Guide to real estate in Nigeria, you’ll gain a clear roadmap—from fundamentals to pitfalls to your first deal.
Understanding the Nigerian Real Estate Landscape
A Dynamic, High-Demand Market
Nigeria’s real estate sector is driven by rapid urbanisation, population growth, and a chronic housing deficit (estimated between 17–21 million units). Cities like Lagos, Abuja, Port Harcourt and others see continuous inward migration, pushing demand for residential and commercial property.
Legal Framework & Land Ownership Structure
All land in Nigeria is subject to the Land Use Act of 1978, which vests land ownership in state governors and issues rights via certificates of occupancy (C of O), leases, and governor’s consent (Multilaw). Freehold ownership is rare; most structures operate under long leaseholds or assigned rights.
You will frequently encounter deeds of assignment, survey plans, and proof of payment, each of which must be verified through the state lands registry.
One thorny issue is “Omo Onile” (traditional landowners) who sometimes claim local rights over land—even where formal documentation exists. This adds a layer of risk and negotiation.
Market Segments & Investment Types
In Nigeria you can invest in:
Residential Properties: apartments, duplexes, face-me-face houses (a common low-income architectural style) (Wikipedia)
Commercial Properties: offices, retail shops, warehouses
Land (Bare or Off-Plan Plots): common for long-term appreciation plays
Property Development / Flipping: purchase, improve, and exit
Real Estate Investment Trusts (REITs) / Collective Schemes: invest small capital into real estate portfolios without owning physical property (LinkedIn)
Key Considerations Before You Begin
Define Your Investment Objective
Decide whether you’re aiming for cash flow (rentals), capital appreciation, short-term flip or a hybrid. This determines which segment, location, and risk level you target.
Study Micro-Markets & Infrastructure Trends
Not all areas in Lagos or Abuja behave the same. Which neighbourhoods are seeing new roadworks, transit expansion, power infrastructure, hospitals, or schools? Property in those corridors tends to appreciate faster.
Budget & Funding Strategy
Calculate not just acquisition cost, but legal fees, survey, title processing, developer margins, marketing, contingency buffer, and maintenance. If you intend to use bank financing, note that Nigerian mortgage rates often fall between 16%–20% annually, making leverage expensive. (The Africanvestor)
Risk & Legal Due Diligence
Verify true ownership via land registry search and chain of title. (Nigeria Property Centre)
Ensure survey plans, building permits, environmental clearances (if needed)
Confirm that property is not part of government acquisition or litigation
Use qualified real estate lawyers, preferably with local registry experience
Steps to Get Started
Step 1: Market Research & Narrowing Focus
Scan listings in target cities and zones. Use real estate portals, talk to agents, and survey plots. Identify trends in price per square metre, time on market, vacancy rates, tenant demand.
Step 2: Choose Entry Strategy
Land acquisition in emerging zones (cheaper per square metre, longer holding).
Buy an existing apartment or building for immediate rental income
Renovate/flip an undervalued property
Invest via REITs / real estate crowdfunding
Piggyvest’s “Investify” is an example platform allowing small capital real estate exposure in Nigeria. (PiggyVest Blog)
Step 3: Negotiation & Structuring
Negotiate favourable payment terms, instalment plans, escrow accounts, or developer financing if available. Be creative with structuring so that you share risk with sellers or partners.
Step 4: Documentation & Registration
Once you reach terms:
Sign a contract of sale / agreement to assign
Process Governor’s consent, Certificate of Occupancy or transfer
Register the title and deed at the state land registry
Pay applicable stamp duties, registration fees, and taxes (Nigeria Property Centre)
Step 5: Manage & Exit
If you are holding for rentals, maintain the property, have tenant screening, property management systems. If your plan is flip, time the market and exit when upside is maximised.
Common Mistakes to Avoid
Skipping due diligence or relying solely on seller’s claims
Selecting areas with low liquidity or weak demand
Overleverage: taking on more debt than you can service
Ignoring cost overruns, vacancy or running costs
Neglecting legal and regulatory compliance
Pros, Cons & What to Expect
Pros:
Real estate often hedges inflation
Tangible asset with control
Leverage potential
Strong demand in Nigeria
Cons / Challenges:
Title and ownership complexity
High cost of finance
Infrastructure gaps and service delivery
Market cycles and illiquidity in some areas
Real estate in Nigeria holds immense promise if you approach it wisely. As you put the steps in this Beginner’s Guide to real estate in Nigeria into action, you’ll gradually move from cautious observer to confident investor.
Ready to explore real properties? Contact Zikan Prop Solutions today for tailored property listings in Lagos, guided due diligence, or a free investment consultation to kick-start your real estate journey.
🏢 Zikan Prop Solutions
🥇 Certified Real Estate Consultant | Multi Award-Winning Realtor
Helping you make the best real estate purchase & investment decisions.
📱 +234 703 000 3514
📲 IG: @zikanpropsolutions
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