Most Nigerians in the diaspora often ask this question: What is the Average Cost per Square Meter of Land in Nigeria?
It’s a good question for anyone looking to invest in real estate projects or build a house in Nigeria because it helps you make an informed decision before investing.
I was shocked to know that most people are ignorant of what we even mean by 'per square meter,' and many of them have been defrauded.
However, I will educate you properly in this article so you can become a vast real estate investor.
In the future, it's also important you know the legal requirements for building a house in Nigeria. Click here to read it.
Now, let's get started.
Average Cost of Land in Ikoyi Area of Lagos Nigeria
At this writing, the land cost varies from one location to another in Nigeria. I want to give you a typical cost of land in the Ikoyi area of Lagos:
Based on the information provided on Nigeria Property Centre's website (https://nigeriapropertycentre.com/for-sale/land/lagos/ikoyi/showtype), here are some facts:
Location: The data is specific to land for sale in Ikoyi, Lagos.
Average Price: The average price of land for sale in Ikoyi, Lagos, is ₦1,300,000 per square meter.
Price Range: The most expensive land costs ₦1,200,000,000 per square meter, while the cheapest costs ₦547,000 per square meter.
Availability: There are currently 760 land listings in Ikoyi, Lagos.
Listings and Agents: The land listings have been provided by estate agents, and their contact information is available for each listing.
Filtering Options: The list can be filtered by price, furnishing, and recency criteria. Additionally, there are quick filters for residential, commercial, industrial, and mixed-use land.
Localities: The website provides information on land for sale in various localities within Lagos, including Banana Island, Falomo, Old Ikoyi, Osborne, Parkview, 2nd Avenue Estate, 3rd Avenue, Abacha Estate, Abdullahi Adamu Estate, Awolowo Road, Bourdillon Road, Cooper Road, Dolphin Estate, Estates, Gerrard Road, Grenadines Skyvilla, Mojisola Onikoyi Estate, Osborne Foreshore Estate, Osborne Phase 1, Osborne Phase 2, Queen's Drive, and Shoreline Estate.
The costs above are subject to change without any prior notice. However, these costs do not determine how much land is being sold in other parts of Nigeria.
For instance, the mean price for residential land in Nigeria's market stands at ₦7,000,000 per plot.
At the pinnacle of the market, the most luxurious residential land is valued at ₦312,000,000 per plot, while the most affordable option is priced at ₦500,000 per plot.1
Currently, there are 6,638 residential land parcels available for purchase in Nigeria.
Estate agents have curated these listings; their contact details are accessible for each residential land listing.
Users can niche down their search by factors like price, furnishings, and how recent the listing is.
Factors Affecting Land Prices in Nigeria
Let’s begin by considering various factors that determine the cost of land in Nigeria:
Location:
The land's location is a pivotal factor in determining its price.
Properties situated in urban areas or in proximity to vital amenities such as schools, hospitals, and markets often command higher prices in the real estate market.
Land Size:
Land prices exhibit a direct correlation with the size of the property.
Larger plots of land generally come with higher price tags, attributed to the increased development opportunities they offer.
Infrastructure:
The presence and quality of infrastructure, encompassing elements like water supply, roads, and electricity, play a crucial role in shaping land prices in Nigeria.
Properties situated in areas with well-established infrastructure tend to carry higher price points.
Economy:
The state of the economy and the real estate industry can significantly influence land prices.
During periods of economic prosperity and high real estate demand, land prices tend to experience an upswing.
On the other hand, economic downturns may lead to a decrease in land prices.
Government Policies:
Government policies and regulations hold substantial sway over land prices.
Factors such as taxes on real estate transactions can impact land demand and subsequently influence pricing dynamics.
How to Find Affordable Land in Nigeria
Here are some tips to help you find affordable options when you are ready to buy land in Nigeria:
Research Online Listings: Look for listings on websites like PropertyPro or Nigeria Property Center. You can use filters for location, price range, and land size to find choices that match your preferences.
Work with a Local Real Estate Agent: A local agent can help you find affordable land options while providing valuable insights into the local real estate market. They can also help navigate legal and logistical issues.
Visit Local Newspapers: Check the classified ads in local newspapers to find available land for sale. You can also place your ad stating your budget and requirements.
Important Considerations for Nigerians in the Diaspora
If you are planning a building project or real estate investment in Nigeria, there are certain considerations you should keep in mind to ensure a smooth process.
Conducting thorough research is one of the most important things before embarking on any building project or investment.
It includes researching the property market, local laws and regulations surrounding real estate in Nigeria, and any potential challenges you may face as a foreign investor.
It is also essential to work with reputable professionals, such as lawyers, real estate agents, and builders, who can provide guidance and support throughout the project.
They can help you navigate the legal and regulatory landscape and protect your investment.
Another important consideration is maintaining good communication with your project team while you are outside of the country.
It involves regularly checking in with the team and making yourself available for important discussions or decisions.
I implore you to budget carefully, keeping in mind additional expenses that may arise due to being outside of the country.
Building projects and real estate investments can be complex; unexpected expenses can quickly eat into your budget if you are unprepared.
Conclusion
You can now see that the average cost per square meter of land in Nigeria depends on the area where the land is located.
Land is more expensive in Lagos, Nigeria, especially when moving towards the island area of Lagos.
However, you can always check the current cost per square meter of land on legit sites where they constantly list the current land costs for different areas in Nigeria.
You will also need to read my guide on what to consider when buying a landed property in Nigeria. Click here to read it.
Lastly, you shouldn't depend on word of mouth from anybody. Do your research and establish facts before paying for land. Cheers!