Key Considerations Before Investing in Real Estate in Lagos State
1. Land Ownership and Documentation
Title Verification is Crucial: Many properties in Lagos have fake or incomplete documentation.
Common valid titles: Certificate of Occupancy (C of O), Governor’s Consent, Registered Deed of Assignment.
Avoid land with “Excision in Process” or “Omo Onile” claims unless you’re experienced in local land matters.
Land Use Classification: Lagos has zoning regulations (residential, commercial, industrial, mixed-use). Buying land in the wrong zone can delay or cancel development.
🛑 Tip: Always conduct a search at the Lagos State Land Registry and consult a real estate lawyer before committing.
2. Location, Location, Location
High-End Areas (e.g., Lekki Phase 1, Ikoyi, VI): Great for luxury apartments, short-term rentals, or commercial property—but expensive with high competition.
Emerging Areas (e.g., Ibeju-Lekki, Epe, Badagry): Affordable entry point and high growth potential due to infrastructure projects (e.g., Dangote Refinery, Deep Sea Port).
Mainland Areas (e.g., Ikeja, Yaba, Ogudu): Established middle-income markets, good rental yield, but often congested.
📍 Key Consideration: Think long-term. Some affordable areas may lack infrastructure now but can offer huge returns in 5–10 years.
3. Due Diligence on Land Sellers
Watch out for “Omo Onile” (local land-owning families) — they can be a major source of disputes, harassment, and extortion.
Only buy from:
Government schemes (e.g., Lagos State Land Bureau allocations).
Verified private developers.
Estates with clear and traceable land titles.
4. Infrastructure & Accessibility
Good Roads: Is the area accessible year-round? Is there a paved road network?
Power Supply: Some zones (e.g., Lekki, Ikoyi) have better infrastructure than others.
Drainage & Flooding: Flooding is a major concern in Lagos. Inspect sites during rainy season if possible.
🛑 High-Risk Areas: Parts of Lekki, Ajah, Ikorodu, and Victoria Island flood heavily.
5. Return on Investment (ROI) Potential
Short-Term Rentals (Airbnb): Profitable in tourist and business districts like VI, Lekki, and Ikoyi.
Long-Term Rentals: Better in middle-income neighborhoods (e.g., Gbagada, Surulere, Yaba) with constant tenant demand.
Land Banking: Buying undeveloped land in growth corridors (like Epe or Ibeju-Lekki) and holding for resale is a popular strategy.
📈 Typical ROI:
Land banking: 30–100% in 2–5 years.
Luxury rentals: 6–10% annual rental yield.
Mid-income housing: 8–12% yield depending on location.
6. Construction and Building Standards
Use registered contractors and architects to meet Lagos State Building Control Agency (LASBCA) requirements.
Get all approvals: Building plan approval, development permit, Environmental Impact Assessment (for large projects).
Don’t start building without approvals—it could lead to demolition or sealing by LASBCA.
7. Government Policies & Urban Development Plans
Study the Lagos State Development Plan (2022–2052) to align your investment with upcoming government projects (e.g., rail lines, expressways, industrial zones).
Areas like Lekki-Epe corridor and Epe are hotspots due to planned infrastructural projects and industrial hubs.
8. Cost Breakdown Beyond Land Price
Hidden Costs:
Legal and agent fees (5–10%)
Documentation and title processing (varies)
Omo Onile “settlement” (informal, but real)
Survey and architectural plans
Land use charge and property taxes
Always budget 10–20% extra for unforeseen costs.
9. Security and Community Relations
Invest in areas with estate security or community watch programs.
Get to know the local community—especially in semi-rural zones. Engaging local leaders (Baales) can prevent disputes.
10. Exit Strategy
How easily can you resell the property or land?
Is the area liquid (i.e., buyers are always available)?
Is there a secondary market, or would you have to wait years to exit?
🔁 If liquidity is a concern, invest in areas with high demand and low supply (e.g., Yaba, GRA Ikeja).
✅ Summary: Real Estate Investment Checklist for Lagos
Factor Considerations
Title Verification Confirm C of O or Governor’s Consent
Location Align with budget, risk appetite, and ROI goals
Developer or Seller Reputable with track record
Flood Risk Avoid high-risk flood zones
Regulatory Compliance Get building approvals and permits
Exit Plan Ensure resale value and market demand