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Everything you need to know before buying real estate is included in our Nigeria Property Pack
Nigeria's real estate market offers diverse housing options across dramatically different price ranges, from affordable rural properties to luxury homes in Lagos and Abuja that cost hundreds of millions of naira.
As of June 2025, average house prices in Nigeria range from ₦500,000 for traditional houses in rural areas to over ₦500 million for luxury mansions in prime locations like Ikoyi and Banana Island. The Nigerian property market is experiencing strong growth, with major cities seeing 10-15% annual price increases driven by urbanization, diaspora investment, and currency devaluation effects.
If you want to go deeper, you can check our pack of documents related to the real estate market in Nigeria, based on reliable facts and data, not opinions or rumors.
Nigerian house prices vary dramatically by location and property type, with Lagos and Abuja commanding the highest prices while emerging cities offer more affordable options.
Transaction costs add 15-25% to purchase prices, and mortgage rates remain high at 15-25%, but rental yields and capital appreciation potential make Nigeria an attractive investment destination.
| Property Type | Price Range (₦ millions) | Best Locations |
|---|---|---|
| Traditional Houses | 0.5 - 0.8 | Rural villages |
| Apartments/Condos | 10 - 20 | Lagos, Abuja suburbs |
| Bungalows | 20 - 60 | Suburbs, emerging cities |
| Terrace Duplex | 50 - 90 | Lekki, Lagos Island |
| Semi-Detached Duplex | 120 - 150 | Ikoyi, Lekki |
| Fully Detached Duplex | 200 - 300 | Banana Island, Asokoro |
| Luxury Mansions | 300 - 500+ | Ikoyi, Maitama |
What are the different types of houses you can buy in Nigeria and how much do they cost on average?
Nigeria's residential market offers ten main property types, each serving different budgets and lifestyle preferences.
Traditional houses in rural villages represent the most affordable option, typically costing between ₦500,000 to ₦800,000. These properties are primarily found in rural communities and offer basic amenities suitable for local living standards.
Apartments and condominiums in urban areas range from ₦10 million to ₦20 million, making them popular entry-level options for city dwellers in Lagos and Abuja. Bungalows, commonly found in suburbs like Iyana Ipaja and Igando, cost between ₦20 million to ₦60 million and provide single-story living with private outdoor spaces.
Mid-range duplex properties include terrace duplexes (₦50-90 million) in areas like Lekki and Lagos Island, and semi-detached duplexes (₦120-150 million) in premium locations like Ikoyi and Lekki. Fully detached duplexes command ₦200-300 million in exclusive areas such as Banana Island and Asokoro.
Luxury mansions represent the top tier, costing ₦300-500 million or more in ultra-premium locations like Ikoyi and Maitama, while penthouses in high-rise buildings start from ₦90 million in areas like Victoria Island and Abuja.
Which cities or areas in Nigeria are the most expensive, most affordable, or considered up-and-coming for property buyers?
Lagos and Abuja dominate Nigeria's most expensive property markets, with specific neighborhoods commanding premium prices.
In Lagos, the most expensive areas include Ikoyi, Victoria Island, Lekki, and Banana Island, where luxury properties regularly exceed ₦200 million. Abuja's premium neighborhoods include Maitama, Asokoro, and Wuse, with similar price ranges for high-end properties.
Port Harcourt's GRA and Trans Amadi areas serve the oil industry and command high prices, while Enugu's Independence Layout and New Haven offer premium options in the southeast region.
The most affordable markets include Ibadan's areas like Bodija, Jericho, and New Ife Road, where quality properties cost significantly less than Lagos equivalents. Kano's Nassarawa GRA and Tarauni areas offer northern Nigeria's affordable options, while Uyo's Ewet Housing and Shelter Afrique developments provide value in the south-south region.
Gwarinpa in Abuja represents the best up-and-coming area, offering affordable prices, high rental yields, and strong infrastructure growth that positions it for significant appreciation. Other emerging areas include parts of Ibadan and Enugu that benefit from improved infrastructure and growing economic activity.
What are the average prices per square meter for each property type and region in Nigeria?
Nigerian property prices per square meter vary dramatically between prime and affordable locations, reflecting the country's economic disparities.
| Location Type | Apartments (₦/m²) | Houses (₦/m²) |
|---|---|---|
| Lagos Prime Areas | 3,697,488 | 1,385,127 |
| Abuja Prime Areas | 1,300,000 | 1,000,000 |
| Lagos Secondary Areas | 800,000 - 1,500,000 | 600,000 - 1,000,000 |
| Abuja Secondary Areas | 600,000 - 900,000 | 500,000 - 750,000 |
| Port Harcourt GRA | 700,000 - 1,200,000 | 550,000 - 900,000 |
| Ibadan Premium Areas | 300,000 - 500,000 | 250,000 - 400,000 |
| Kano/Other Northern Cities | 200,000 - 400,000 | 200,000 - 350,000 |
How much is the total cost to buy a house in Nigeria, including legal fees, agency commissions, taxes, and other charges?
Buying a house in Nigeria involves significant additional costs beyond the purchase price, typically adding 15-25% to your total investment.
Legal fees represent 5-10% of the purchase price and cover title verification, contract preparation, and transaction completion. Agency commissions range from 5-10% and are typically paid by the buyer in Nigeria's market structure.
Government fees include stamp duty at 0.75-1% for residential properties, registration fees of 3-5%, and the crucial Governor's Consent fee ranging from 8-15% in Lagos (varies by state). Survey fees vary based on property size and location but are essential for title confirmation.
Additional costs include Capital Gains Tax at 10% (usually the seller's responsibility but can affect negotiations), property inspection fees, and various administrative charges. Some transactions may require additional documentation fees depending on the property's history and location.
It's something we develop in our Nigeria property pack.
How have average house prices changed in Nigeria over the past 5 years and over the last year?
Nigerian house prices have experienced accelerated growth, particularly in 2024-2025, driven by multiple economic factors.
Lagos property prices increased 10-15% in 2024-2025, with 4-bedroom homes in Ikoyi now averaging ₦240 million compared to previous years. This represents one of the steepest annual increases in recent history, reflecting strong demand and economic pressures.
Abuja experienced 8-10% annual increases, with 4-bedroom properties in Maitama averaging ₦213 million as of mid-2025. This growth rate has been consistent over the past two years, driven by government activities and infrastructure development.
Emerging cities like Ibadan, Enugu, and Uyo have seen more moderate but steady increases of 5-8% annually. These markets benefit from Lagos and Abuja spillover effects while maintaining more affordable entry points.
The primary drivers of price increases include naira devaluation effects, rising construction costs due to imported materials, continued urbanization, and significant diaspora investment as Nigerians abroad seek stable assets. Currency instability has made real estate particularly attractive as a hedge against inflation.
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What are the price forecasts for Nigerian real estate in 1 year, 5 years, and 10 years from now?
Nigerian real estate market forecasts indicate continued strong growth across all time horizons, though with varying rates by location and property type.
One-year forecasts (to mid-2026) predict 10-15% annual growth in Lagos and Abuja markets, while emerging cities should see 8-10% increases. These projections are based on current demand patterns, ongoing infrastructure projects, and continued urbanization trends.
Five-year forecasts (to 2030) anticipate sustained upward trends, especially in urban centers, unless major economic disruptions occur. Lagos and Abuja are expected to maintain premium status with steady appreciation, while secondary cities may experience accelerated growth as they develop infrastructure and attract investment.
Ten-year projections (to 2035) show strong appreciation potential, particularly in cities receiving infrastructure investment and experiencing population growth. Nigeria's housing deficit, estimated at over 20 million units, combined with rapid urbanization, will keep demand consistently high across the forecast period.
Key growth drivers include continued population growth, urbanization trends, infrastructure development, and increasing middle-class purchasing power. However, forecasts assume political stability and continued economic development policies favoring real estate investment.
What are some real examples of recent house purchases in different Nigerian cities and price brackets?
Recent property transactions across Nigeria's major markets demonstrate the wide price range and regional variations in the current market.
In Gwarinpa, Abuja, 4-bedroom townhouses have recently sold for ₦30-50 million, representing excellent value for buyers seeking quality properties in a developing area with strong infrastructure. These properties typically feature modern amenities and good security systems.
Lekki, Lagos has seen 3-bedroom terrace houses selling for ₦70-90 million, reflecting the area's premium status and proximity to business districts. These properties often include private compounds and access to recreational facilities.
Ibadan market shows 3-bedroom bungalows selling for ₦15-25 million, offering significant savings compared to Lagos while providing quality housing in Nigeria's third-largest city. These properties appeal to buyers seeking affordable family homes with good growth potential.
Ikoyi, Lagos luxury market features 4-bedroom properties selling for ₦240 million, representing the premium end of Nigeria's residential market. These properties typically include luxury finishes, extensive grounds, and comprehensive security systems.
Port Harcourt's GRA area has seen similar luxury transactions, with expatriate and oil industry professionals driving demand for high-end properties in secure, well-serviced neighborhoods.
If I plan to live in the house, which areas and property types are the best options in terms of value, safety, and quality of life?
For residential living, Nigeria offers several areas that combine value, security, and lifestyle amenities, depending on your budget and preferences.
Lagos options include gated communities in Lekki, which provide excellent security, modern amenities, and proximity to business centers, though at premium prices. Ikeja GRA offers more affordable alternatives while maintaining good security and access to Lagos amenities. Victoria Island provides urban convenience but requires higher budgets for quality housing.
Abuja presents excellent options with Gwarinpa offering the best value proposition, featuring affordable prices, growing infrastructure, and good security systems. Maitama and Asokoro provide luxury living with top-tier security and amenities, particularly suitable for expatriates and high-income professionals.
Port Harcourt's GRA remains the preferred choice for expatriates and oil industry professionals, offering established infrastructure, security, and international community presence.
Enugu and Ibadan provide quieter alternatives with lower costs of living, good family environments, and improving infrastructure. These cities offer particularly good value for retirees or those seeking lower-stress urban environments.
Property types recommended for residential living include detached or semi-detached houses in gated communities, which provide the best combination of security, privacy, and amenities for family life.
What are the best options if I want to rent out the property—both for short-term like Airbnb and long-term tenants?
Nigerian rental markets offer different opportunities for short-term and long-term investment strategies, with location being crucial for success.
For short-term rentals (Airbnb), Lagos dominates with the highest monthly revenue potential, averaging ₦355-678 USD per month in prime areas. Falomo, Lekki, Ikate, and Ikeja offer the best short-term rental performance due to business traveler demand and tourist activity.
Abuja provides steady short-term rental demand with moderate regulation, making it suitable for investors seeking consistent occupancy. The city's government activities and conference facilities drive regular business traveler demand.
Emerging markets like Ibeju, Ojomu, and Moba offer high average daily rates (ADR) and occupancy levels for investors willing to target developing areas with growing business activity.
For long-term rentals, Gwarinpa in Abuja offers high rental yields with steady tenant demand from government workers and young professionals. The area's affordability and improving infrastructure make it attractive to long-term tenants.
Ikeja GRA in Lagos provides consistent occupancy and premium rents from expatriates and executives, though requiring higher initial investment. The area's established infrastructure and security make it highly desirable for long-term corporate tenants.
It's something we develop in our Nigeria property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nigeria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What kind of returns can I expect if I buy now to resell later, and which locations offer the best capital appreciation?
Nigerian real estate markets offer varying capital appreciation potential depending on location, property type, and investment timeline.
Lagos provides 10-15% annual price growth with 6-8% rental yields, making it Nigeria's strongest market for both capital appreciation and income generation. Prime areas like Ikoyi and Lekki consistently outperform other markets due to continued development and limited prime land supply.
Abuja offers 8-10% annual appreciation with strong rental demand, particularly in areas like Maitama and Asokoro. The city's status as the capital and continued infrastructure development support long-term growth prospects.
Emerging cities provide 5-10% appreciation with lower entry prices and rising demand. Cities like Ibadan, Enugu, and parts of Gwarinpa offer higher yields relative to investment costs, though with potentially higher risk.
Best appreciation prospects include prime Lagos and Abuja locations for secure, steady growth, while up-and-coming areas like Gwarinpa, specific Ibadan neighborhoods, and Enugu areas offer higher potential returns for investors willing to accept emerging market risks.
Investment timelines significantly affect returns, with 5-10 year holding periods typically providing the best balance of appreciation and rental income. Properties in developing infrastructure corridors often provide the highest appreciation potential as connectivity and amenities improve.
What are the mortgage options available for buying a house in Nigeria and how do the interest rates and terms compare?
Nigerian mortgage market offers several financing options, though interest rates remain high compared to global standards due to the country's economic environment.
Primary mortgage banks include Abbey Mortgage Bank, FirstTrust Mortgage Bank, and Platinum Mortgage Bank, each offering different products and terms. These institutions specialize in residential lending and often provide more competitive rates than commercial banks.
Equity contribution requirements range from 20-30% of the property value, with higher requirements often applied to self-employed borrowers or for properties in certain locations. This significant down payment requirement reflects lenders' risk management in Nigeria's economic environment.
Repayment periods typically span 10-25 years, depending on borrower age, income stability, and property type. Longer terms are available for younger borrowers with stable employment in established companies or government positions.
Interest rates currently range from 15-25%, reflecting the Central Bank of Nigeria's benchmark rate of 27.5% as of 2025. These rates are high by international standards but reflect Nigeria's inflation environment and lending risks.
Alternative financing includes cooperative societies, which offer lower rates for members, and developer financing arrangements, where property developers provide payment plans during construction periods.
How do house prices in Nigerian cities compare with similar-sized cities in other African or emerging market countries?
Nigerian house prices occupy a middle position among African markets, with Lagos and Abuja ranking among the continent's more expensive cities while remaining affordable compared to global markets.
Lagos and Abuja rank among Africa's most expensive markets for prime real estate, though still more affordable than Johannesburg, Nairobi, or Accra in comparable premium locations. Lagos prime properties cost more than similar properties in Dar es Salaam or Kampala but less than Cape Town or central Nairobi.
Cost of living context shows Lagos and Abuja as affordable compared to global cities, but property prices in prime zones are high relative to local income levels. This creates both opportunities and challenges for different investor types.
Regional comparison shows Nigerian secondary cities like Ibadan, Enugu, and Port Harcourt offering better value than equivalent secondary cities in Ghana, Kenya, or South Africa. These markets provide entry points for investors seeking African exposure at lower price points.
Emerging market context positions Nigeria's property market as offering good value for international investors, particularly given the country's economic size, population growth, and urbanization trends compared to other African markets.
Currency considerations make Nigerian real estate particularly attractive for foreign investors when the naira is undervalued, though this creates volatility in investment returns when measured in foreign currencies.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Nigeria's real estate market presents diverse opportunities across different price segments and locations, from affordable rural properties to luxury urban developments.
Success in the Nigerian property market requires careful consideration of total costs, location selection, and understanding of local market dynamics, but offers attractive returns for informed investors.
It's something we develop in our Nigeria property pack.
Sources
- Facibus Housing - Types of Houses in Nigeria
- TheAfricanVestor - Nigeria Price Forecasts
- The Nation - Nigeria's Most Expensive Cities 2025
- TheAfricanVestor - Real Estate Investment Nigeria
- TheAfricanVestor - Nigeria Which Area
- Aparthotel - Nigeria Market Analysis
- Properstar - Nigeria House Prices
- Global Property Guide - Nigeria Square Meter Prices
- LinkedIn - Nigeria Property Closing Costs
- Abiterra - Cost of Buying Property