From selecting the perfect location to sorting through paperwork and avoiding scams, buying real estate in Nigeria is particularly arduous for first-time buyers. Beyond meticulous planning, making informed decisions is also key. Below is a step-by-step guide on how successfully navigate Nigeria’s real-estate market as a first-time customer.
Understand the Market
No tip is perhaps more important than having an understanding of the forces of the market and how they influence the prices of properties across cities in Nigeria. Owing to infrastructure and population, Lagos and Abuja are ranked among the most expensive cities in Nigeria, with places such as Ibadan and Enugu providing budget-friendly alternatives. Therefore, research property trends, government policies, and economic conditions that have the potential to influence the price of real estate.
Set Your Budget
More than anything, your budget will determine what type of property you can purchase. In addition to the cost of the property, this will include agency charges, lawyer fees, surveyor’s fee, deed of assignment, and Certificate of Occupancy (C of O). An older property may require renovation costs. To supplement your budget, you can explore financing options such as mortgage loans, cooperative-housing schemes, or real-estate investment trusts (REITs).
Choose the Right Location
Location plays an important role in real estate investment. The proximity of a school, hospital, expressway or government institution can ramp up the value of a property. Safety and development potential are also on the radar. Central locations typically appreciate faster, while suburbs guarantee affordability. New buyers must weigh accessibility against cost when making a decision.
Conduct Due Diligence
Many first-home buyers fall victim to land scams chiefly for glossing over small details. The landowners and the title deed of sale—including the legal title of sale—should be confirmed before making any payment. An authorised surveyor must be commissioned to authenticate boundaries of property and confirm that the land is not subject to government acquisition or litigation. It helps to recruit the services of a property lawyer to avoid being cheated.
Negotiate with Genuine Estate Agents or Developers
Estate developers greatly make it easy to venture into the housing market. Unfortunately, the market is riddled with rogue agents. To avoid dealing with one, confirm that your developer is registered with corporate organisations such as the Nigerian Institution of Estate Surveyors and Valuers (NIESV) or the Real Estate Developers Association of Nigeria (REDAN). Demand correct documents from them at all times and never engage in a verbal agreement.
Secure Proper Documentation
Legal documents form the backbone of any property transaction. First-time buyers should get the Deed of Assignment, Survey Plan, C of O, and Governor’s Consent—signed and registered by the relevant government agencies. If there is a purchase from an estate developer, ensure that the land title is clean.
Look at Long-Term Value
Real estate is an investment for the long term. Hence, seek properties that have high appreciation value. Infrastructure development in the form of road construction, bridges, or business centres has the potential to add value to the property in the long term. The buyers also need to consider rental income potential if purchasing for investment.
Final Thoughts
Purchasing a property in the Nigerian real estate industry for the first time requires patience, research, and professional guidance. Prospective buyers can secure their first property by following the above-listed steps.
Buying real estate in Nigeria can be challenging for first-time buyers, requiring thorough planning and informed decision-making. Understanding the market is crucial, as factors like infrastructure and population cause cities like Lagos and Abuja to be more expensive compared to affordable alternatives like Ibadan and Enugu. Setting a budget is essential, covering property costs and additional expenses like agency and legal fees. Location significantly affects property value, with central areas appreciating quickly and suburbs offering affordability.
Conducting due diligence is vital to avoid scams, ensuring landowners and legal titles are verified. It's important to work with registered estate developers or agents, while securing proper documentation, including the Deed of Assignment and Certificate of Occupancy, is necessary for legal transactions. Focus on long-term value by considering the appreciation potential and rental income possibilities. A successful real estate purchase in Nigeria demands patience, research, and professional advice to navigate the complexities of the market.
