Factors to Consider Before Buying a House from a Developer in Lagos

BY Godswill Igbokwe April 25, 2025

In the real estate space, developers are literally lifesavers. Who else takes on the heavy lifting of building from scratch, getting permits, hiring contractors, managing building materials, and still wrapping it up with modern aesthetics and decent finishing? Developers, of course. Before buying a house in Lagos from any developer, there are basic factors to consider.

Buying from a developer, especially in a city like Lagos, sounds like the easiest route to homeownership. No need to worry about foundation depth, tiling, roofing, or even the kind of plumbing installed; developers handle all that. 

However, Lagos is a city where you ought to “shine your eyes” when it comes to buying properties. Before you part with millions (or tens of millions) of naira, here are the major factors you must consider before buying a house from a developer in Lagos.

Is Buying Houses From Developers a Popular Trend?

It’s hard to say, as different people prefer different routes to home ownership. While some people prefer to build from scratch, some other people do not want to be bothered with the price of cement in the market. This might be your preference too.

Perhaps due to an already heavy work schedule or just personal preference, you may want to just have someone else do the heavy lifting. And that’s alright.

If you’re thinking of buying a house from a developer in Lagos, don’t think you’re alone. Many more people desire to buy from developers rather than build from scratch. 

Since Lagos has an estimated housing deficit of about 3 million units, the demand for residential properties is quite high. Thankfully, developers have filled this demand gap by building estates and apartment blocks across the mainland and island. 

But as juicy as the idea sounds, it’s not without its issues and hidden potholes. Which is why you need to pay attention to everything we will explain in the next section.

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Factors to Consider Before Buying a House from a Developer in Lagos

Here are 10 factors you need to consider before you buy a house from a developer in Lagos.

1. Reputation and Track Record of the Developer

Let’s start with the basics: Who is the developer, and what is their reputation?  Before you sign anything, it’s best to make Google your best friend. Don’t just admire the pretty house. Investigate the person or company behind it.

A reputable developer will have a traceable history, verified office location, functioning website, and a real person behind the emails.

In addition, resist the urge to be wooed by flashy billboards or Instagram ads showing swimming pools and chandeliers. A developer’s past projects speak volumes. 

Visit their previous developments. Are the buildings still standing strong? Any legal disputes? Were homeowners satisfied with what they got? In Lagos, stories abound of people who paid for houses that were never completed or built with substandard materials. 

Check with regulatory bodies too. Is the developer registered with the Lagos State Real Estate Regulatory Authority (LASRERA)? 

Are they affiliated with bodies like REDAN (Real Estate Developers Association of Nigeria)? Be wary of developers who are not registered with these organisations or have zero verifiable projects. 

2. Title Documents and Land Ownership

This is a BIG one. A beautiful house on shaky paperwork is a disaster waiting to happen. One of the biggest traps people fall into is ignoring the title of the property. 

You need to confirm that the land on which the house was built is legally acquired and registered. The developer should be able to present you with verifiable documents such as:

No matter how beautiful the house looks, if the title is shaky, walk away. Don’t let aesthetics blind you. 

Make sure the land the house is sitting on has a genuine title and that the developer has the legal right to sell. If you can, engage a real estate lawyer to verify these documents. Don’t just take the developer’s word for it.

Also, ask:

  • Is the title free from government acquisition?
  • Is there any family dispute attached to the land?
  • Has the land been properly transferred to the developer?

If it’s “in process” or “they said they will bring it,” that’s your cue to pause. Let it go. It’s not worth the headache.

While on documents, ask of regulatory compliance and building approvals too. Every development in Lagos should comply with town planning and building regulations.

Ask the developer if the estate been approved by the Lagos State Ministry of Physical Planning. Find out if there are environmental impact assessments and drainage plans.

Also, is the building height, design, and layout approved? If not, the entire structure could be at risk of demolition or penalties.

3. Location and Accessibility

You’ve probably heard this before: Location is everything. And it’s true. Don’t let cheap prices lure you into the bush (especially if you’re buying a property to live in). 

A beautiful home in a terrible location will frustrate you, especially in Lagos where commuting can eat up half your day.

A house that’s N25 million in some remote area might sound like a bargain until you realize your workplace is on the other side of town and you have to endure 3-hour traffic each way. 

Here are a few location-related questions to ask:

  • How developed is the neighborhood?
  • What’s the road network and traffic situation like in the area?
  • How far is it from your workplace, children’s schools, hospitals, and grocery stores?
  • Are there good road networks and public transportation options?
  • Is the area prone to flooding?

For example, parts of Lekki, Ajah, and Sangotedo still struggle with seasonal flooding, even with their high-end housing. 

So, check drainage systems and ask residents about their experience during rainy season. Visit the area at different times of the day (and even during rainy season) to get a realistic picture.

4. Quality of Construction

Don’t assume the building is solid just because it’s new. Some developers cut corners by using substandard materials. That fancy POP ceiling won’t matter if the foundation is shallow or if cheap cement was used. 

It’s true that this one might be tricky to assess, especially if you’re not an engineer. But don’t be shy to ask questions or even hire an independent building engineer to assess the structure before payment.

Here’s a useful checklist:

  • Are the walls straight and crack-free?
  • Is the plumbing properly installed?
  • Do doors and windows close properly?
  • What about water pressure, electrical wiring, and ventilation?

Some developers cut corners to maximize profit. According to the Nigerian Institute of Building, the increasing number is building collapses in Lagos is caused by incompetent builders who use poor materials and cause construction errors. 

That’s enough reason to take quality inspection seriously. You’re paying millions; make sure it’s worth it.

5. Payment Structure and Hidden Costs

This scenario is very common. On the surface, you might see a sign board saying: “Own a 3-bedroom duplex for N45 million only.” By the time you get the full payment structure, you realize there are “additional charges” like:

  • Legal fee
  • Development levy
  • Caution fee
  • Service charge (per annum)
  • Documentation fee

These could add up to 10% to 20% of the total cost. So, make sure the developer provides a detailed cost breakdown upfront. 

Also, understand the payment plan. Some are flexible (e.g., 12–24 months), while others require lump sum payments. 

5 Bedroom Duplex Osapa For Sale
5 Bedroom Duplex Osapa For Sale

6. Delivery Timeline and Completion Guarantee

Time is money, especially in Lagos. Some developers promise to deliver in 6 months but take 2 years. And even then, you might get only carcass or semi-finished work. 

Make sure you get a contractual delivery timeline and clauses that explain penalties if deadlines are missed. You should also visit the site periodically to track the pace of construction. 

A smart move? Buy into projects that are already 70% to 90% completed. This way, you know you’re getting the real deal.

Get it in writing:

  • Expected delivery date
  • Penalties for delay (if any)
  • Conditions for final handover
  • What stage your payments must reach before keys are handed over

Also, confirm whether the house will be delivered fully finished, semi-finished, or shell condition.

7. Estate Management and Maintenance Plan

Okay, so you’ve paid and gotten your keys. What next? Who manages the estate? What happens if the gate is faulty? Who ensures that water flows and security is tight?

Some developers hand over estate management to a third party, while others disappear after sales. Clarify:

  • Who handles power (is it PHCN, inverter, or private generator)?
  • How often are communal areas cleaned?
  • Who maintains roads, drainage, and landscaping?
  • What’s the annual service charge, and what does it cover? (e.g., security, water supply, waste disposal, estate maintenance)
  • If these costs likely to go up.

Many Lagos estates operate on service charges to maintain communal infrastructure. That’s normal. But the amount, frequency, and what it covers should be crystal clear.

Note that in some gated estates in Lagos, service charges can range from N150,000 to N500,000 per annum, depending on amenities and location.

8. Legal Review of the Contract

You know that 15-page document with tiny print? Read it. In fact, get a real estate lawyer to go over it.

Some contracts are heavily skewed in the developer’s favor. For instance:

  • No refund policy, even if the developer defaults
  • No liability for construction flaws after handover
  • Outrageous penalties for late payment on your part

Protect yourself. A small legal fee could save you from a lifetime of regret.

9. Resale and Rental Value

Even if this is your “forever home,” it doesn’t hurt to think long-term. 

What’s the rental/resale market like in that area? Will the house appreciate in value? Is the area developing fast? Can the house be rented out easily?

This is important in case you ever want to move or cash out on your investment. Areas like Yaba, Ikeja GRA, and Lekki Phase 1 have high resale appreciate rate; around 5% to 10% annually. In contrast, some outskirts may take decades before value rises.

On the other hand, the average rental yield in Lagos is around 3% to 8% annually, but this varies greatly depending on location and amenities.

10. Security

This goes beyond estate gates. Check the general area too. Visit at night, talk to locals, observe traffic patterns.

Security red flags to check:

  • Is the neighborhood prone to cult clashes or robberies?
  • How far is the nearest police station?
  • Is there a neighborhood vigilante group?

Lagos is vibrant, yes. But let’s not pretend it’s all rosy. You want to live in a place where you and your property are safe.

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Final Thoughts

Buying a house from a developer in Lagos is a big step, and for many, it’s the single biggest investment they’ll ever make. Don’t rush it. Ask questions, do your homework, and don’t fall for sweet-talking sales agents or peer pressure.

If you’re not familiar with the Lagos real estate market, consider hiring an experienced consultant. They’ll help with background checks, paperwork, and negotiation and sometimes, they’ll even sniff out red flags you would have missed.

If you’re currently looking to buy a property and want a second pair of eyes before committing, don’t hesitate to reach out us. We are here to hold your hand as you secure your next property.

Do you desire to buy this house in Lekki? Call or send a WhatsApp message to +2348134794494.

 

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