Off-plan property simply means buying a property before it’s completed, either when it’s still on the architect’s table or during early construction.
It’s like ordering a car that hasn’t been assembled, but you’re promised that when it arrives, it’ll be better than if you bought it straight off the lot.
In fact, off-plan transactions are now responsible for over 30% of all new property acquisitions in major Nigerian cities, according to industry insiders from the Real Estate Developers Association of Nigeria(REDAN).
The reason off-plan works in Nigeria today is simple: everyone is looking for smart ways to own or flip property without bleeding cash.
And with the average 3-bedroom apartment in Lekki now costing ₦95 million when fully built, most middle-income earners know they must get in early or risk being priced out permanently.
Developers know this, too. So, they create attractive off-plan offers, paying in phases, huge discounts, and long-term returns, to lock in buyers early.
But it’s not just about cheaper prices.
Off-plan purchases give buyers the flexibility to stretch payments over 6 months, 12 months, or even 24 months.
For example, in places like Chevron Drive in Lagos, developers now request an initial deposit of just ₦10 million, with monthly spreads as low as ₦2 million.
You don’t need to cough up the full ₦80 million at once.
That strategy alone has enabled over 7,000 new landlords in Lagos to lock down property since 2020 without traditional mortgages.
When done carelessly, some have lost millions to uncompleted projects and shady builders.
But when done wisely, off-plan property can turn a ₦40 million investment into a ₦65 million resale asset in just 18 months.
That’s over 60% ROI, far more than what most savings accounts or even treasury bills offer.
Economic inflation is forcing developers to seek upfront capital to hedge against rising building material costs.
Cement, for example, has jumped from ₦3,400 to over ₦10,000 in less than five years.
Iron rods, tiles, doors, and labour have all followed that same path.
Developers want early funds to buy materials now before the market goes wild.
So, they discount heavily for early buyers. In return, these early adopters get huge capital gains and flexible terms.
Take Lagos, for example.
A 2-bedroom off-plan unit in Ikate-Lekki that sold for ₦32 million in 2022 is now reselling at ₦55 million.
Meanwhile, the buyers only completed payment in mid-2023, and some of them haven’t even moved in yet.
That means in under 24 months, they earned over ₦20 million in equity, without lifting a block.
Abuja is not left out either.
Developers in Gwarinpa and Jahi now prefer to build off commitments from off-plan buyers.
With plots skyrocketing and permits getting harder, they want assurance before pouring concrete.
A new 4-bedroom terrace project in Jahi launched its off-plan phase in January 2024 for ₦65 million.
By April 2025, the developer plans to raise the price to ₦85 million at completion. That’s a ₦20 million jump.
If you buy now and exit later, you pocket the spread.
Even diaspora Nigerians are getting in on the game. Platforms like BuyLetLive and FibreHomes now allow Nigerians abroad to invest in verified off-plan projects across Lagos and Abuja with installment plans and vetted developer guarantees.
The numbers are encouraging. REDAN reports that over 40% of off-plan investors in Lagos in 2024 were Nigerians in Canada, the UK, and the US, sending dollars home for smart property bets while avoiding inflation back home.
In the next three years, over 60% of new estates in Lagos’ fringe areas like Ibeju Lekki, Sangotedo, Bogije, Epe, and parts of Ikorodu will be sold off-plan before a single foundation is laid.
It’s now the preferred model for private developers who can’t access traditional bank loans. Instead of borrowing at 28% interest from banks, they use buyers’ money to build and deliver faster.
Government bodies are also catching up.
Some federal housing projects are now being marketed off-plan through cooperatives and housing schemes.
The Federal Mortgage Bank of Nigeria(FMBN) is reportedly exploring off-plan frameworks to fast-track ownership for civil servants, allowing them to pay over the years while construction progresses.
In Abuja and Enugu, such models are already being tested.
Despite the potential, the biggest off-plan risk remains delay.
Some projects drag beyond their timelines due to inflation, poor planning, or mismanagement. It’s why you must have a written payment agreement, a signed delivery timeline, and a clause for refund or transfer in case of failure.
Benefits of Off-Plan Property
In a country where owning a home remains a dream for millions and inflation continues to make real estate more expensive each year, Nigerians are beginning to look beyond traditional models of property acquisition.
Today, more people are embracing off-plan property purchases as a strategic route to owning homes without breaking the bank.
Off-plan property is not new, but its benefits have started to make it the top option for smart buyers, particularly those who want to maximize limited funds, grow long-term equity, and beat inflation in an unpredictable market.
For those unfamiliar with the term, off-plan property refers to the purchase of real estate, mostly residential apartments or homes, before the construction is fully completed.
This means you buy based on the architectural plan, the developer’s promise.
Yet this seemingly risky idea has turned into a highly rewarding path for those who understand its value.
Over the past five years, over 25,000 Nigerians across major urban cities have used the off-plan model to acquire real estate they wouldn’t have been able to afford if they had waited until completion.
With building material prices rising consistently, cement has moved from ₦2,700 in 2019 to over ₦10,000 in 2025. Developers are offering huge discounts for early investors to reduce the burden of inflation on their construction process.
One of the biggest benefits of off-plan property is that it allows Nigerians to buy homes at prices significantly lower than their market value upon completion.
When you buy early, you lock in a cheaper rate
For example, a 2-bedroom apartment in Sangotedo offered at ₦28 million off-plan in 2022 was worth ₦42 million when it was completed in late 2024.
That means anyone who keyed in early gained ₦14 million in equity without doing anything except waiting.
Across Lagos, this is a recurring trend.
In 2023 alone, off-plan properties appreciated by an average of 35% between launch and completion, according to reports from REDAN.
This passive appreciation makes it one of the most powerful wealth-creation tools available to Nigerian investors today.
Flexible payment structure
Some developers are now offering payment spreads of up to 36 months with initial deposits as low as ₦5 million.
This structure suits many Nigerians who earn monthly salaries and want to gradually work toward homeownership.
In an economy where the average private sector worker earns between ₦150,000 and ₦350,000 monthly, this payment model allows more people to participate in the real estate market without borrowing or getting into debt.
Off-plan projects also give buyers a level of personalization that completed properties simply cannot offer.
You’re not just walking into a fixed home design; you’re part of the process.
Many developers now allow off-plan buyers to tweak floor plans, select preferred finishing options, and suggest changes that align with their taste or lifestyle.
Whether it’s requesting a larger kitchen, a walk-in closet, or a different type of tile, this level of customization is only possible during the off-plan stage.
For many Nigerian families, this is the first time they can truly call a house their own, shaped by their needs, preferences, and aspirations.
It provides emotional relief
Imagine living in Nigeria and knowing you have locked down a home in development, with no landlord threats hanging over your head. Psychologically, off-plan gives a sense of ownership early, even if the house isn’t built yet.
This stability is key in a country where over 65% of urban dwellers rent, and many spend over 45% of their income on rent.
With rent prices in Lekki jumping from ₦1.8 million to ₦3.5 million for 2-bedroom apartments within three years, owning a property off-plan provides security against unpredictable hikes.
Furthermore, off-plan property is creating real estate entrepreneurs out of ordinary Nigerians.
Many buyers are no longer acquiring these homes to live in; they’re buying them for resale.
Some acquire three or four units during early construction, and once the estate is complete, they resell two at higher market prices and keep one.
A property in Ajah bought at ₦35 million off-plan in 2021 is now selling at ₦58 million in 2025.
This profit margin has drawn attention from Nigerians in the diaspora, with over $400 million flowing into off-plan investments from Nigerian expatriates between 2021 and 2024.
Another underappreciated benefit of off-plan property in Nigeria is the relatively low entry barrier for group investments.
Cooperative societies, friends, and family members can come together to pool resources and buy a unit or block of units.
These shared investments are fueling the development of entire mini-estates in places like Arepo, Epe, and Karshi.
In a country where formal mortgages are inaccessible to over 90% of the population due to a lack of credit history or documentation, pooling resources to invest off-plan has become an affordable and strategic alternative.
Groups are now building family homes, retirement residences, and even schools, all using the off-plan model.
The resale value
Land banking may be solid, but it often requires long wait times and additional development costs.
Buying cars for Uber or Bolt may offer quick income, but they depreciate fast.
Stocks are unstable, and mutual funds are limited by inflation.
Meanwhile, off-plan property, when bought in the right location with a trusted developer, combines the security of real estate with the appreciation of time.
You invest today, pay gradually, and enjoy long-term capital gains and rental income tomorrow. It’s not just property—it’s future wealth in progress.
Off-plan purchases also protect buyers from inflation and Naira volatility.
When you agree on a price today, you’re immune to future construction cost hikes.
Even if the price of cement doubles during the construction phase, your price remains fixed.
In an economy where inflation is now above 32%, locking in prices early is an underrated form of financial insurance.
Those who wait until properties are completed often find that prices have moved beyond their reach.
With off-plan, you’re essentially paying yesterday’s price for tomorrow’s value.
From an urban planning perspective, off-plan property development is also helping cities grow in an organized fashion.
Developers are now required to submit building plans, secure permits, and comply with zoning regulations before selling off-plan.
This structured process ensures that estates are built with layouts that include green areas, drainage, power systems, and communal facilities.
In Lekki, estates like Urban Prime and Camberwall are known for delivering well-planned communities that go beyond just shelter.
Buyers in these estates enjoy modern infrastructure because developers had the funds and time to plan during the off-plan phase.
Security is another overlooked benefit.
Most off-plan properties are sold within gated communities or serviced estates.
This means buyers don’t just get homes, they get an environment too.
Children can play safely, water is guaranteed, roads are paved, and in many cases, power is stable.
As Nigeria’s middle class continues to grow, so does the demand for quality living environments.
Off-plan properties offer access to that standard before the price climbs too high.
Also important is the transparency that off-plan projects are now building into their transactions.
Legal protection has also improved
Buyers are now requesting Memoranda of Understanding(MoUs), payment receipts, allocation letters, and project timelines signed by both parties.
Lawyers are more involved in transactions, and the Lagos State Government is reportedly building a centralized off-plan registry to protect buyers.
With better documentation comes stronger legal recourse; if a developer defaults or delays without just cause, buyers can now recover their funds more easily than ever before.
More so, off-plan property encourages long-term financial discipline.
Nigerians who pay monthly towards their future home develop a savings culture, avoid unnecessary expenses, and build real assets without even realizing it.
Instead of spending ₦300,000 on rent every year, a family can channel that sum into a property that will be theirs in two years.
This mindset shift, from spending to investing, is one of the most powerful transformations the off-plan movement is driving.
Tips Before Buying an Off-Plan building in Nigeria
Understand the exact title of the land where the property will be built
Many Nigerians make the mistake of assuming every off-plan home sits on government-approved land.
But this is not always the case.
Some developers begin construction on land with only a survey or excision-in-progress document.
You need to confirm if the land has a valid Certificate of Occupancy(C of O), Governor’s Consent, or a registered title.
In Lagos State, owning a property without the right title means you could lose the property later, especially during government reclamation projects.
Ask for architectural plans and development timelines that have been approved by the appropriate authorities.
The Lagos State Physical Planning Permit Authority(LASPPPA) requires that all developers submit structural and architectural plans before development.
If these are not approved, your off-plan property might be demolished down the line.
In 2023, LASBCA took down over 360 unapproved structures across Lagos.
Pay attention to the structural plan and design.
Nigerians tend to focus on payment structure and forget to check what they are paying for.
Is the apartment a 2-bedroom or a small 2-bedroom? Does it come with ensuite toilets, balconies, fitted kitchens, or just the shell? Is there room for expansion?
Understanding the layout and design early helps avoid surprises when construction is done and you realize it doesn’t meet your expectations.
Carefully go through the payment structure and ensure you can meet the financial obligations without stress.
Most developers offer payment plans that spread over 12 to 24 months, but penalties often apply if you default.
Some charge up to 5% of the outstanding amount monthly as a penalty for missed payments.
You need to be sure your income can support the chosen plan.
If your salary is ₦300,000, don’t commit to a monthly installment of ₦250,000 just because the location sounds prestigious.
Work only with real estate agents or consultants who understand off-plan transactions.
Many Nigerians get tricked by agents who are only chasing commissions and don’t care about the client’s long-term interest.
A good consultant will request and review documents, compare developers, and explain terms in simple language.
In a market where over 40% of buyers regret their off-plan purchase after one year, the role of an informed middleman cannot be overstated.
Visit the project site yourself.
No matter how far you live or how impressive the developer sounds, nothing replaces a physical inspection.
In 2022, a group of diaspora investors bought apartments off-plan in Epe, only to discover the location was swampy and inaccessible for eight months of the year.
If you can’t visit, send someone you trust.
Ask if the project is insured.
This is one question most Nigerians forget to ask, and it could cost them everything.
A reputable developer should have building insurance that protects against structural collapse, fire, or accidents during construction.
With over 540 recorded building collapses in Nigeria between 2011 and 2024, insurance is no longer optional.
It’s a necessity for your peace of mind.
Get a lawyer involved from the start.
Real estate in Nigeria is a legal battlefield.
You’re about to sign documents, pay millions, and wait for two years.
Let your lawyer review the subscription form, allocation letter, and deed of contract.
Some contracts have clauses that give the developer up to five years to complete the project without liability.
Others say if you default once, your unit will be reassigned. You need a legal eye to catch hidden traps.
Make sure you understand what happens if the project is delayed.
Will the developer refund your money? Will they pay penalties? Or are you expected to keep waiting indefinitely?
These answers should be clearly stated in the contract.
In Nigeria, many developers hide behind “force pretence” clauses to avoid accountability. You must protect yourself from such vagueness.
Understand whether the property is shell finish, semi-finished, or fully finished. In Nigerian off-plan projects, these terms are thrown around loosely.
Shell finish might mean you only get block walls.
Semi-finished could mean plastered walls with no paint, while fully finished might still exclude wardrobes and kitchen cabinets.
Know if your payment includes documentation and statutory fees.
Some developers quote ₦40 million for a duplex and fail to mention that you’ll still pay ₦4 million for allocation, legal fees, survey, and development levy.
Always ask what’s included in the quoted amount.
If not, you might think you’re buying a 3-bedroom for ₦25 million only to discover the full cost is ₦30 million.
Ask when physical allocation will take place.
This is when the developer officially shows you the plot or apartment assigned to you.
If allocation is delayed beyond 6 to 12 months after payment completion, you may not have a say in what you eventually get.
Some buyers end up with smaller units or undesirable locations because they failed to secure early allocation.
Know who’s responsible for infrastructure, roads, electricity, drainage, water, and fencing.
Is it the developer, or is it up to residents to fund those after handover?
Some off-plan estates hand over “houses” but leave residents to construct internal roads or install boreholes.
Before you invest, confirm what infrastructure will be delivered and when.
Be wary of off-plan projects where title documents are “in process” for too long.
If a developer keeps saying the C of O is coming but can’t provide proof of application or land file number, run.
In Lagos, it takes 3–18 months to process the Governor’s Consent if all documents are complete.
If there’s no movement after a year, the land may have issues.
Ask if the estate has a government-approved layout.
If not, the developer could be forced to redesign or remove buildings that encroach on setbacks, roads, or green zones.
This happened in Ibeju-Lekki in 2023 when several off-plan estates were marked for demolition due to a lack of compliance with planning regulations.
Find out what happens if you want to exit midway.
Can you resell your unit before completion? Will the developer allow you to assign your slot to another buyer? Is there a refund policy?
In Nigeria’s uncertain economy, flexibility is a key part of a smart investment.
Evaluate resale potential from day one.
Even if you plan to live in the property, think long-term.
Will this estate be desirable in five years? Is it near a major road, school, or commercial hub?
Properties in poorly located areas stagnate in value or become hard to rent or resell.
Study the neighborhood’s projected growth.
If a major expressway, airport, refinery, or university is planned in the vicinity, the area could experience exponential growth.
Epe saw land prices grow by over 200% between 2021 and 2024 because of planned infrastructure.
Investing off-plan in growth zones can double your returns within a short time.