Is Land Banking Still a Viable Investment Strategy in Nigeria?

For decades, land banking has been a go-to investment strategy in Nigeria, offering investors the opportunity to buy land at a low price and sell it later for significant returns. But with the evolving real estate landscape, rising property prices, and economic fluctuations, many investors are asking: Is land banking still a viable investment strategy in Nigeria today?

What is Land Banking?

Land banking is the practice of acquiring undeveloped land in strategic locations and holding onto it until its value appreciates. This strategy has been particularly lucrative in Nigeria’s rapidly growing cities, where urban expansion continuously drives up land prices.

Why Land Banking Works in Nigeria

Nigeria’s increasing population and urbanization rate make land a highly valuable asset. With cities like Lagos, Abuja, and Port Harcourt expanding at an unprecedented rate, the demand for land continues to grow. Some of the key factors

that make land banking a promising investment include:

- High Demand for Housing: Nigeria faces a housing deficit of over 20 million units, increasing the need for land for development.

- Urban Expansion: Areas previously considered rural are now prime real estate due to infrastructural development.

- Inflation Hedge: Land tends to appreciate over time, making it a good store of value against inflation.

Many investors have reaped huge rewards from land banking in Nigeria. Take the case of Ibeju-Lekki, Lagos—years ago, land in this area was highly affordable, but with developments like the Dangote Refinery, Lekki Free Trade Zone, and the proposed Lekki-Epe International Airport, prices have skyrocketed.

Similarly, areas like Epe, Abuja’s outskirts, and Ogun State have seen tremendous appreciation in land values due to increased infrastructure and business expansion

Risks Involved in Land Banking

While land banking is a potentially lucrative strategy, it’s not without risks. Some common challenges include:

- Land Title Issues: Many investors have fallen victim to fraudulent land sales and disputes over ownership.

- Government Acquisition: Some lands are earmarked for future government projects, leading to losses for uninformed buyers.

- Liquidity Concerns: Unlike stocks or REITs, land is not easily liquidated.

How to Mitigate Risks in Land Banking

To maximize gains and avoid pitfalls, investors should:

1. Conduct Proper Due Diligence: Verify land titles at the Land Registry to avoid disputes.

2. Buy in Strategic Locations: Research future government projects and infrastructural developments.

3. Work with Reputable Real Estate Firms: Partner with trusted companies like Babajide Okusaga & Co. to ensure safe transactions.

4. Hold for the Right Time: Timing is key—wait for the best market conditions before selling.

Is Land Banking Still Viable?

Yes, but with caution. The fundamentals of land appreciation remain strong, but investors must be strategic, well-informed, and patient. Land banking is not a get-rich-quick scheme; it requires foresight, proper planning, and trusted guidance.

Ready to Invest?

If you’re considering land banking in Nigeria, let Babajide Okusaga & Co. guide you through the process. Visit our website today to explore prime investment opportunities and secure land in high-growth areas before prices soar!

Babajide Okusaga & co are Chartered Surveyors and Real Estate Consultants with expertise in Agency, Investment, Management, and Syndication (AIMS). We are known for being client-focused and results-driven, aiming to connect clients with their specific real estate needs such as sales, letting, joint ventures, and partnerships.

We dedicate time and energy to ensure clients’ satisfaction by helping them find the best-suited real estate solutions. Whether it’s leasing office space, financing a first home, purchasing a new factory, or managing an investment portfolio, Babajide Okusaga & Company caters to the considerations of corporate entities, individuals, and High Net Worth Individuals (HNIs).

Contact 02013423872 for Enquiries.