Read This Before You Buy an Off-Plan Property in Lagos

Before you buy an off-plan property in Lagos
BY Godswill Igbokwe April 28, 2025

You’ve probably seen the gleaming 3-bedroom duplexes in Lekki or Ajah, offered at “mouth-watering off-plan prices.” It sounds like a dream deal, doesn’t it? But before you transfer a single naira to buy an off-plan property in Lagos, pause and read this.

Buying off-plan property in Lagos can be a brilliant financial move or a catastrophic mistake. In this guide, we’ll break down everything you need to know before signing anything.

Buying off-plan means purchasing a property before it is fully built or completed. Instead of touring a finished house, you’re shown architectural plans, 3d renders, or a sample apartment (also called a “showroom”).

Know How Off-Plan Property Works in Lagos Before You Buy

  • The developer presents the design and specifications, often accompanied by a stunning promotional package.
  • You commit to buying by paying an initial deposit, typically ranging from 10% to 30%.
  • Further payments are made in stages, which are tied to the construction timeline (e.g., when the foundation is completed, when the roofing is done, etc.).
  • Once the project is completed, you get possession, which is often followed by another round of inspections and snagging (fixing minor issues).

This model is especially common in fast-developing areas of Lagos like Lekki, Sangotedo, and Ajah. Developers are eager to attract buyers early, using initial deposits to fund ongoing construction. But before you rush to secure a unit, knowing both the rewards and risks is important.

Exquisitely Built 5 Bedroom Fully Detached Duplex. Osapa London
Exquisitely Built 5 Bedroom Fully Detached Duplex. Osapa London

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Why Investors Buy Off-Plan Properties in Lagos

Lower Initial Cost: 

Off-plan properties are generally cheaper than already-completed ones. Developers typically offer lower prices to incentivise early buyers and fast-track their projects.

Flexible Payment Plans

Instead of paying the full price upfront, developers often offer staggered payment plans. You might be required to make periodic payments as the construction progresses. This helps ease the financial burden.

High Capital Appreciation

If the area is still developing, the property’s value could increase significantly before completion. For instance, a property bought in the early stages of a development could be worth much more once the project is finished, especially if the area has experienced significant growth.

Early Customisation

In some cases, you may have the opportunity to customise certain features, like the flooring, cabinetry, or colour schemes. This gives you a sense of ownership early on and can enhance the final product to match your tastes.

However, while these benefits are appealing, they are not without their challenges.

What They Don’t Tell You About Off-Plan Properties in Nigeria

1. Project Delays Are Common

That 18-month promise? It might stretch into three years or more. Construction delays are a common occurrence in Lagos’ real estate market. The factors behind these delays can include:

  • Unpredictable weather conditions (the rainy season can slow down construction).
  • Funding challenges (delayed payments from buyers can delay construction progress).
  • Bureaucratic red tape (securing permits and approvals can be time-consuming).
  • Land disputes (ownership issues or disputes with landowners can halt development).

These delays can be frustrating, especially when you’ve already invested money into the property. Be prepared for this possibility and ensure your contract includes a clause for penalties if the developer fails to meet deadlines. This is why we are different. We deliver on our promise.

2. Some Developers Disappear

Yes, you read that right. Some developers collect money from multiple buyers and vanish into thin air. Others may keep recycling the same project, selling it to more than one buyer without proper documentation. This could leave you with no property and no recourse to recover your funds.

It’s important to research the reputation of the developer thoroughly. Look for reviews, ask for references from past buyers, and ensure that the developer has a track record of successful completions.

3. Your Money Isn’t Always Safe

Unlike buying a completed property, where you hand over money at the time of purchase, most off-plan transactions require you to pay in stages. Unfortunately, many off-plan purchases are made without a third-party escrow account to hold the buyer’s funds. 

As a result, if the developer defaults or goes bankrupt, recovering your investment can be a lengthy and costly legal process.

To mitigate this risk, always inquire about whether the payments are managed by an independent trustee or escrow account, where your funds are held securely until the completion of specific milestones.

4. The Final Product May Not Match What Was Promised

A shiny brochure, polished marketing material, and beautiful 3D renderings can all make a property look ideal. But once you take possession of the property, you might be faced with substandard finishes, poor drainage, smaller room sizes, or even missing features that were promised.

This discrepancy could be a result of a budget cut or worse, intentional misrepresentation by the developer. Always ensure that the contract outlines the materials, specifications, and design features. If possible, hire a professional to inspect the property before finalising the purchase.

Before You Buy an Off-Plan Property in Lagos, Ask These Questions

Before making a decision, you must ask these tough but essential questions. Proper due diligence can protect you from future headaches.

1. Who is the developer?

  • Are they registered with the Corporate Affairs Commission (CAC)?
  • Can they provide evidence of previous projects that have been successfully completed? Visit these projects and speak to previous buyers about their experiences.

2. Is the land properly documented?

Request copies of all legal documents related to the land, including the Certificate of Occupancy (C of O), Governor’s Consent, or Deed of Assignment. These documents prove that the developer has the legal right to sell the land.

3. Is there a clear contract of sale or MOU?

Never accept verbal promises. Ensure you have a detailed written contract that clearly outlines payment schedules, penalties for delays, project timelines, and the developer’s obligations. Consult with a real estate lawyer to review the contract before signing.

4. What happens if there are delays?

The contract should specify what happens in the event of construction delays, including whether the developer will pay any penalties to the buyer.

5. Where is your money going?

Find out how your payments are being handled. Is the money paid directly to the developer, or is it deposited in a separate trustee or escrow account? Be cautious of any situation where the funds are not managed independently.

6. Is construction ongoing?

Don’t buy based on brochures alone. Before you buy any off-plan property in Lagos, ask if construction is ongoing. Visit the site regularly to check on the progress of construction. This helps ensure the project is moving forward and the timelines are being met.

During your research, stay alert for these red flags. They could indicate that the developer is not trustworthy, or the deal may be too good to be true:

  • No physical office or traceable address: Developers with no established business location might be fly-by-night operators.
  • No evidence of government approvals: Lack of official documentation could signal illegal land transactions.
  • Pressure to pay quickly or risk “losing the deal”: If a developer is rushing you to make a decision, it could be a sign of trouble.
  • Vague timelines and evasive answers: If the developer isn’t transparent about timelines or project progress, take caution.
  • No documented refund policy: Be wary if the developer doesn’t have a clear refund or compensation policy in case the project is delayed or fails.

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Final Thoughts

Off-plan properties can be a smart investment, especially in emerging areas of Lagos, which can see rapid capital appreciation as infrastructure improves. However, it requires due diligence, patience, and careful consideration. The risks associated with off-plan property purchases are real, but with thorough research and proper legal safeguards, they can be mitigated.

Take the time to:

  • Verify the developer’s reputation.
  • Confirm the land title is legitimate.
  • Review the contract with a real estate lawyer.
  • Ask for references from previous buyers and see completed projects.
  • Regularly visit the construction site to ensure progress is on track.

In the end, remember that you’re not just buying a property, you’re investing in your future, and peace of mind is invaluable.

Do you desire to buy this house in Lekki? Call or send a WhatsApp message to What is a Fully Detached Duplex in Lagos?.

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