For decades, property investment in Nigeria has been viewed as a safe and prestigious path to building wealth. From buying plots of land in Lagos or Abuja to investing in short-term rentals and commercial real estate, Nigerians have long leaned on property as a cornerstone of legacy and financial stability. But in today’s volatile economy, marked by naira devaluation, inflation, erratic policies, and rising construction costs, is property investment still the goldmine it once was?
State of Nigeria’s Economy Calls For Property Investment Reassessment
The Myth of Guaranteed Returns
There was a time when owning land in Lekki Phase 1 or Abuja’s Wuse was a surefire win. But as Nigeria’s economic instability deepens, it’s clear that location alone is no longer enough. Properties that once promised double-digit appreciation are now plagued by slow demand, abandoned infrastructure projects, and oversaturation.
In cities like Lagos, the cost of building materials has more than doubled due to inflation and import dependency. Renters are also becoming more selective, meaning vacancy rates are climbing, particularly for luxury apartments that don’t match today’s purchasing power.
Inflation vs. Real Estate
With inflation hovering around 25% (as of March 2025) according to Trading Economics, holding on to cash feels like watching it evaporate. This has pushed some investors toward real estate as a “hedge.” However, this isn’t always the smart move unless the property is income-generating or in a development corridor that promises tangible, near-term growth.
If you’re buying just to “hold,” you may find yourself locked into an asset that’s illiquid, depreciating (in real terms), and burdensome to maintain.
Regulatory and Political Risk
Policy inconsistency is another landmine. With frequent changes in land use laws, double taxation, and unclear property rights—especially in rural and peri-urban areas—many investors face bureaucratic bottlenecks or even loss of ownership.
Without due diligence and legal safeguards, investing in Nigerian real estate can feel more like gambling than strategy.
So, What’s the New Playbook?
- Focus on Utility and Use Case: What will the property do for you in the next 12–24 months? Rental yield, resale value, or long-term development potential?
- Go Beyond Hype Zones: Upcoming development zones (like Epe, Ibeju-Lekki, or parts of the FCT outskirts) might offer more realistic entry points than overhyped city centers.
- Prioritize Data-Driven Decisions: Work with property advisors who provide real-time market insights, not emotional pitches or vague promises.
- Diversify: Real estate shouldn’t eat up 80% of your portfolio. Consider REITs, co-investment platforms, or fractional ownership models to reduce exposure.
Property investment in Nigeria isn’t dead, but blind optimism is. In this economy, smart investors aren’t just buying land. They’re buying strategy. If you’re thinking long-term, staying liquid, and being brutally honest about ROI, you can still win. But this time, it’ll take more than a fence and a deed of assignment. It’ll take vision.