Ten years ago, a plot of land in Oluyole area of Ibadan sold for an average of 3 million. Today, that same plot costs over ₦ 15 – 20million — and it’s still rising. Real estate has remained one of the few ways a people can fight or stay in an economy, either good or bad— everyone needs a place to lay their heads, even animals. 

If you’re tired of watching your salary erode with inflation and rent hikes, this article is for you. Let this article walk you through that investment that gives you a roof, rent checks, and a growing asset all at once.

Reality check: real estate in Nigeria isn’t automatic wealth. Done wrong, it can become a money trap. It’s time to show you how to do it right so it becomes a legacy. 

Why Real Estate Still Beats Most Investments in Nigeria

In 2024, prime areas like Lekki, Ikoyi, Victoria Island and some highbrow parts of Ibadan saw ~15% appreciation in property prices.In Lagos, property prices surged to above 39.5% in 2024. 

Generally, across Nigeria residential property yields average 6%–10% annually and by the end of 2025, about 30 million units of housing is expected to have been built. This has made the real estate sector one of the strongest contributors to the country’s GDP (Real Estate in Nigeria,2025)

The Real Estate Ladder 

1. Buy a piece of land
2. Hold and wait to build momentum. 
3. Build residential or rental for optionality. 
4. Reinvest your gains. 
5. Build a portfolio or estate to reduce risk. 

Step-by-Step Guide to Get Started In Real Estate 

Step 1: Learn the Market 

Never jump in blind, regardless of how mouthwatering the deal is. 

• Know the real estate types: land, residential, commercial, short-let.
• Watch for rising neighborhoods using industrialization, roads, development e.tc. 
• Check out neighborhoods that are still out of the public eyes or not saturated.
• Follow local real estate blogs, developer updates, and estate price indexes 

“You invest ₦2 million in land in Ibeju-Lekki in 2021. In 2025, because of road improvements and proximity to the new expressway, its value jumps to ₦8 million making you serious returns.”

Step 2: Set Your Goal

Are you investing for steady cash flow or large gains? What’s your budget? What’s the length of time you can wait for? Your goal determines whether you start with land, a small flat, shortlet or a shop.

Step 3: Land First 

Owning a land first is a beginner-friendly entry

Lands are cheaper than building and can be easily held while the area develops whilst still appreciating. Reselling or subdividing  your land is another option.

Warning: Always verify for  C of O, Deed of Assignment, governor’s consent, overlapping layout and  government acquisition in progress

Step 4: Establish a rental property 

Once you have the capital to continue, it is much better to get a rental property.

1. Residential units: flats, duplexes, short-lets around campuses or busy zones
2. Commercial: shops, office spaces, warehouses. 
3. Short-term rentals: student areas, tourist zones — you might get 12–20% yield per annum. 

Step 5: Use Financing Smartly

You don’t always need to have all the capital. 

One can safely explore mortgages from federal and national lenders like FMBN / NMRC, real estate cooperatives or even joint ventures with real estate developers. Be careful: always compare interest rates, repayment types and default risks. 

Step 6: Work with Trusted People

Never cut corners here. Real estate can be tricky. 

Do not look for cheap and inconsistent labour — employ surveyors, engineers and architects to validate plans. Engage property lawyers to verify land records. Use registered real estate agents. 

State Property Registration Digitization (2025)-Lagos and Abuja now allow online land title verification for transparency.

Step 7: Maintain & Upgrade

Nigerians are in the habit of abandoning properties including land after purchase and while waiting for it to appreciate. A property left to rot can lose its value. Check on your lands, fence it if possible. For buildings, fix leaks, repaint, maintain security, and employ cleaners. 

Step 8: Diversify

• Spread across cities (Lagos, Ibadan, Port Harcourt)
• Mix property types (land, rental house, shop)
• Use both long-term and short-let strategies

Possible Mistakes To Watch Out For 

• Properties with faulty title
• Wrong location (no roads, bad security)
• Overleveraging beyond your capacity
• Poor property management 
• Tenant types — bad tenants. 

5. 2025 Laws & Changes You Should Know 

“Under the 2025 Real Estate Regulation Bill, developers and agents must now be licensed, reducing the fraud cases that have discouraged many first-time investors. Plus, recent FMBN reforms have simplified mortgage access for workers earning below ₦500,000 monthly.”

Examples Of Entry Options by Budget

Final Thoughts & Quote

“₦2 million can still buy land in Mowe or Epe. The same land could hit ₦7–₦10 million before 2027.”

“Shortlets in Lekki Phase 1 bring ₦40,000–₦120,000 per night. Even with 60% monthly occupancy”. “Commercial shops in Ibadan’s Dugbe area rent for ₦800k–₦1.2m yearly.”

Real estate in Nigeria is noisy, messy, and sometimes scary, but it’s one of the few assets that can outpace inflation, and survive currency crashes.

“While many Nigerians rent; some collect rent. The choice is yours.”