Buying land in Nigeria, especially in developing cities, is a great investment opportunity. However, it’s important to approach the process with caution. Without proper due diligence, you could face challenges like unclear land titles, poor land conditions, or issues with accessibility. Whether you’re purchasing land for personal use or investment purposes, understanding the key factors to consider can help you make informed decisions and avoid costly mistakes.
In this blog, we’ll cover the five essential factors you must consider before buying land in Nigeria’s emerging cities.
Location and Accessibility: The location of your land plays a significant role in determining its value and future appreciation potential. Proximity to key amenities such as schools, hospitals, shopping centers, and business hubs can dramatically affect the price of land and how quickly it appreciates. Areas that are well-connected to major roads, airports, and public transport networks will typically attract higher demand, which translates into higher land values.
For instance, cities like Abeokuta and Ibadan have seen significant development in recent years, largely due to their proximity to Lagos and improved road networks. The Lagos-Ibadan Expressway, for example, has made it easier for people and goods to move between the two cities, boosting the demand for land in these areas. Similarly, Asaba’s strategic location along the Onitsha-Asaba-Benin axis has made it a key location for commercial and residential development.
When evaluating land for purchase, consider how accessible the land is to essential services and key infrastructure projects. Ask yourself: How far is the land from the nearest main road? Are there plans for future road expansion or public transportation that could enhance its value? Does the area have reliable access to electricity, water, and telecommunications infrastructure?
Land Titles and Documentation: One of the most important aspects of buying land in Nigeria is ensuring that the land title is legitimate and that all documentation is in order. Without a proper title, your investment could be at risk, as land disputes and fraudulent land sales are not uncommon in Nigeria.
The most secure land title in Nigeria is the Certificate of Occupancy (C of O), which is issued by the government and certifies that the land is legally owned by the holder. Other titles include the Governor’s Consent, which is required for land transactions involving a C of O, and the Registered Deed of Assignment, which is used for transferring land ownership from one person to another.
Before purchasing any land, it’s crucial to verify the land title with the relevant authorities. This process can be time-consuming, but it is essential to ensure that the land is free from encumbrances and that there are no disputes or claims on the property. Working with a trusted real estate agent or lawyer can help streamline this process and ensure that your investment is secure.
Soil and Land Use: Not all land is suitable for every type of development. Before buying land, it’s essential to assess the soil quality and determine whether the land is suitable for building or farming. For instance, certain areas may be prone to flooding, while others may have rocky or sandy soil that makes construction difficult.
In addition to soil quality, it’s important to consider the land’s zoning regulations and land use restrictions. In Nigeria, certain areas are designated for specific purposes, such as residential, commercial, agricultural, or industrial use. If you’re planning to build a residential property, you’ll need to ensure that the land is zoned for that purpose and that there are no restrictions that could affect your plans.
Working with a surveyor or environmental engineer can help you assess the land’s suitability for your intended use. They can also help you identify any potential issues that could affect the value or usability of the land in the future.
Security and Crime Rates: Security is a critical factor to consider when buying land in Nigeria, especially in developing cities. The safety of the area can significantly impact the value of the land and the ease of developing it. Areas with high crime rates or a lack of security infrastructure may be less attractive to buyers and investors, resulting in lower demand and slower appreciation.
Before purchasing land, it’s important to research the crime rates in the area and assess the overall security situation. This can include checking for the presence of police stations, community security patrols, and neighborhood watch programs. Additionally, you may want to visit the area at different times of day to get a sense of the local environment and any potential security concerns.