Real estate is regarded as one of the safest and most rewarding investments.
However, emotions and widespread myths can easily mislead investors.
From the idea of “land is running out” to the assumption that “property values always increase,” these misconceptions often push people to make choices that may not be as financially smart as they appear.
To ensure you make informed decisions and avoid costly mistakes.
Let’s clear the air by debunking some of the most common myths surrounding real estate investment.
Ready? Let’s dive in!
Myth 1: Real Estate Always Appreciated in Nigeria
Reality: Appreciation Depends on Location and Timing
While it is true that property values tend to increase over time, this is not a guaranteed rule in Nigeria.
Factors such as poor infrastructure, insecurity, or oversupply of properties in certain areas can cause property values to stagnate or even decrease.
Real-Life Example
An investor purchased land in Ikorodu, Lagos, expecting it to appreciate rapidly due to promises of government infrastructure projects.
Ten years later, the area remains underdeveloped, and the property value has barely increased.
Myth 2: It’s Cheaper to Build Than to Buy
Reality: Building Costs Can Be Unpredictable
Many Nigerians believe building their own home is more economical.
But they often ignores hidden costs like rising material prices, contractor fees, and unforeseen delays.
Real-Life Example
A family in Port Harcourt started building a house in 2020, budgeting ₦10 million.
Due to inflation and material price hikes, they spent over ₦18 million before completion, surpassing the cost of buying a similar property.
Myth 3: Land Without a C of O Is Useless
Reality: Other Valid Land Titles Exist
While a Certificate of Occupancy(C of O) is important, other legitimate documents like Deed of Assignment, Governor’s Consent, and Registered Survey can validate land ownership.
Real-Life Example
A young investor bought land in Ibeju-Lekki with a Registered Survey and Deed of Assignment.
Though it lacked a C of O, the transaction was genuine, and the property’s value doubled within five years as development projects in the area progressed.
Myth 4: Buying Land in Rural Areas Is Always a Smart Investment
Reality: Not All Rural Lands Appreciate
Many believe rural land is cheap and bound to increase in value over time.
However, some rural areas lack the potential for future development, making them poor investments.
Real-Life Example
A businessman purchased acres of land in Oyo State, believing urbanization would soon extend to the area.
A decade later, the area remains inaccessible, with no significant development to attract buyers or investors.
Myth 5: Real Estate in Nigeria Is for the Wealthy
Reality: Real Estate Is Accessible to All
With flexible payment plans, cooperatives, and government schemes, real estate in Nigeria is not exclusive to the rich.
Options like joint ventures and shared ownership also make it affordable for middle-income earners.
Real-Life Example
A teacher in Abeokuta joined a cooperative society, pooling resources with colleagues to purchase land.
Over time, the group developed the property into affordable housing units, generating income and creating opportunities for others.
Myth 6: A Landlord’s Income Is Passive
Reality: Property Management Requires Effort
Being a landlord in Nigeria involves active management.
From dealing with tenants to maintaining the property and navigating legal issues, rental income often requires hands-on effort.
Real-Life Example
A landlord in Abuja faced constant challenges with tenants defaulting on rent and damaging the property.
He eventually hired a property manager to handle these issues, reducing stress and improving tenant relations.
Myth 7: Investing in Real Estate Guarantees Quick Returns
Reality: Real Estate Is a Long-Term Game
Unlike stocks or cryptocurrencies, real estate investments often require years to yield significant returns.
Quick profits are rare and usually come with higher risks.
Real-Life Example
An investor in Enugu bought land in a developing area, expecting to sell it at double the price within two years.
Unfortunately, development in the area was slow, and it took seven years for the property value to double.
Myth 8: All Real Estate Agents Are Professionals
Reality: Many Agents Lack Proper Training
In Nigeria, anyone can claim to be a real estate agent, leading to scams and poorly handled transactions.
Not all agents have the same skills or knowledge.
Choosing the right agent, particularly one specializing in your market or property type, is crucial for success.
Real-Life Example
A buyer in Lagos was duped by an unregistered agent who sold her land already owned by another party.
The legal battle to reclaim her money lasted years and emphasized the importance of working with verified agents.
Myth 9: Once You Buy Property, Your Job Is Done
Reality: Properties Require Maintenance
Owning property in Nigeria means ongoing costs for maintenance, security, and taxes.
Neglecting these can reduce the property’s value over time.
Real-Life Example
A landlord in Kaduna ignored routine maintenance on his rental property.
Over time, the building developed structural issues, forcing him to spend more on repairs than if he had maintained it earlier.
Myth 10: The Bigger the Property, the Better the Investment
Reality: Demand Dictates Value
Larger properties may appeal to some buyers, but they also come with higher maintenance costs and may be harder to sell.
Demand often favours smaller, more affordable properties.
Real-Life Example
An investor in Lekki purchased a large, luxurious duplex but struggled to find buyers.
Meanwhile, a friend who invested in smaller flats sold them quickly due to higher demand from young professionals and families.
Myth 11: The Best Time to Invest in Real Estate Is When You Have Extra Money
Reality: Start Small, Start Early
Many Nigerians delay investing in real estate until they accumulate significant savings.
However, starting small through instalment plans or joint ventures can be more effective in building wealth over time.
Real-Life Example
A civil servant in Ibadan started with a small plot of land purchased via a payment plan.
Over five years, she acquired additional plots, creating a portfolio that significantly increased in value.
Myth 12: Properties Near Markets and Bus Stops Are Always Ideal
Reality: Accessibility Comes with Trade-Offs
While properties near markets and bus stops are convenient.
They may also suffer from noise, pollution, and overcrowding, which can deter some buyers or tenants.
Real-Life Example
A family in Lagos bought a house near a major bus stop for easy commuting.
However, constant noise from traffic and street vendors made the home uncomfortable, forcing them to sell at a lower price.
Myth 13: Once a Property Is Developed, It Sells Itself
Reality: Marketing Is Key
Even well-developed properties require effective marketing to attract buyers.
High-quality photos, videos, and online promotion are essential to stand out in Nigeria’s competitive real estate market.
Real-Life Example
A developer in Abuja built luxury apartments but struggled to sell due to poor marketing.
After investing in professional photography and advertising on property platforms, sales improved significantly.
Myth 14: Real Estate Investment Is Risk-Free
Reality: Risks Exist in Every Investment
From title fraud to market fluctuations and poor management, real estate in Nigeria comes with risks.
Conducting due diligence and seeking expert advice is essential to minimize these risks.
Real-Life Example
An investor in Lagos bought land without verifying its ownership.
The land was later claimed by the government as part of a reserved area, resulting in a total loss for the investor.
Myth 15: Foreign Investors Have No Interest in Nigerian Real Estate
Reality: Nigeria Attracts Global Investors
Despite challenges like infrastructure and legal concerns, Nigeria’s growing economy and population make it an attractive market for foreign investors.
High-demand areas like Lekki and Victoria Island see regular foreign interest.
Real-Life Example
A foreign company partnered with a Nigerian developer to build a gated community in Abuja.
The project attracted expatriates and wealthy Nigerians, proving the country’s real estate potential on the global stage.
Myth 16: Buying is Always Better than Renting
Reality: It Depends on Your Financial Goals
Buying property is often marketed as a sound financial decision.
But it isn’t always the best option for everyone. Renting offers flexibility, and in some cases.
The costs of homeownership, such as maintenance and property taxes, can outweigh the benefits.
Real-Life Example
A young professional in Lagos, Nigeria, opted to rent an apartment near her workplace rather than purchase a home on the outskirts.
The savings on commuting costs and the flexibility to relocate for better job opportunities made renting a more practical choice for her.
Myth 17: Location Is All That Matters
Reality: Other Factors Are Equally Important
While location is a key factor, other elements like the property’s condition, market demand, and timing can significantly impact its value and appeal.
Real-Life Example
A luxury home in a prime neighbourhood of Ikoyi, Lagos, remained unsold for years because it required major repairs.
Buyers preferred more affordable homes in move-in condition, even in less desirable locations.
Myth 18: You Don’t Need a Home Inspection for New Builds
Reality: New Doesn’t Always Mean Perfect
Even brand-new homes can have construction defects or non-compliance with building codes.
A home inspection is a critical step to ensure your investment is sound.
Real-Life Example
A buyer in VGC discovered plumbing issues and an improperly installed roof during an inspection of a newly built home.
Addressing these issues before closing saved her thousands of Naira.
Myth 19: A Higher Price Means More Profit When Selling
Reality: Overpricing Can Backfire
Setting a high price can deter potential buyers, leading to a prolonged listing period and eventual price reductions.
Pricing a home competitively attracts more interest and can spark bidding wars.
Real-Life Example
A homeowner in Lagos initially overpriced her home, assuming buyers would negotiate down.
After months without offers, she relisted at a lower price and sold the home within weeks.
Myth 20: Real Estate Agents Are Unnecessary in the Digital Age
Reality: Expertise Still Matters
While online tools simplify some aspects of buying and selling, real estate transactions are complex.
Agents provide invaluable market insights, negotiation skills, and legal knowledge.
Real-Life Example
An investor in Abuja tried to handle a commercial property deal independently but struggled with legal paperwork.
Hiring an agent saved the deal and ensured compliance with local regulations.
Myth 21: You Should Wait for the “Perfect Time” to Buy
Reality: Timing the Market Is Almost Impossible
Waiting for prices to drop or interest rates to fall can lead to missed opportunities.
The right time to buy is when you’re financially ready and have found a property that meets your needs.
Real-Life Example
A couple in Ikoyi delayed their purchase, hoping for a market correction.
Instead, prices rose further, and they ended up paying more than they would have initially.