As a reliable real estate company, we’ve guided countless clients through the critical choice when they ask, Should I buy land and build or buy a house?
In our unique market, characterized by rising construction costs, land documentation challenges, and infrastructure gaps, this decision requires careful consideration.
Unlike generic advice online, this guide addresses Nigeria’s realities: cement at ₦8,000+ per bag, omo-onile threats, Governor’s Consent delays, and erratic power supply.
Let’s break down both paths step by step so you invest wisely.
Building a House in Nigeria
Building a home offers significant long-term advantages but requires patience and expertise. Financially, you save 20–30% by avoiding developer markups.
For example, constructing a 4-bedroom house in Akobo, Ibadan, can cost roughly ₦35 million today, while buying a similar ready-built property in Bodija might cost ₦75 million.
You also gain full control over everything from the beginning to the end, allowing you to decide the design of your house and what you want in the house.
However, building introduces complex challenges.
Hidden costs escalate quickly:
- Securing the governor’s consent in states like Lagos or Oyo costs ₦1.5–₦4 million and takes 6–18 months.
- Essential infrastructure—like boreholes (₦500,000+) and electricity connections (₦100,000+)—adds further struggle.
- Construction faces unpredictable delays, especially during April–October rains, which can halt work for months.
- Most critically, projects in areas like Lekki or Ibadan’s outskirts risk omo-onile interference, where landowners demand daily settlements (budget ₦500,000–₦5 million for this).
Buying a Built House
Purchasing an existing house delivers immediate results but demands rigorous verification.
The biggest advantage is speed; you can move in within 30 days, avoiding multi-year construction. Costs are also more predictable since you bypass cement inflation (prices rose 35% in 2024) and contractor fees.
Ready-made homes in high-demand areas like Abuja’s Maitama or near universities (UI in Ibadan, UNILAG in Lagos) yield steady rental income (8–10% annually), ideal for investors.
Yet, buying has serious pitfalls.
- Structural defects are common; up to 40% of new houses have hidden flaws like weak foundations or faulty wiring.
- Title fraud is rampant—1 in 3 resale properties face ownership disputes, especially family lands.
- Sellers also inflate prices by 15–25% in prime areas like Bodija (Ibadan), knowing demand is high.
To avoid these risks, you must inspect ruthlessly: Hire a COREN-certified engineer (cost: ₦200,000–₦500,000) to assess the structure and verify the Certificate of Occupancy (C of O) at the state land bureau.
Buying works best for those relocating urgently, lacking construction experience, or seeking quick rental returns.
Key Factors to Consider
Your decision hinges on four Nigerian-specific factors:
- Finances,
- Timeline,
- Risk tolerance,
- And location.
Finance: Building demands deeper pockets for hidden costs (allow 30% extra), while buying requires upfront capital for renovations or overpayment.
The timeline: This is critical. Building may take 6–36 months with rainy season disruptions, and buying can take 1–3 months to complete the transaction.
Risk tolerance: Building exposes you to Omo-Onile harassment and contractor fraud, while buying risks inheriting defects or legal battles.
Location: Emerging zones like Moniya, Ibadan or Karsana, Abuja, favor building—land is cheaper and appreciates faster—but established areas like GRA, Ibadan or Maitama (Abuja) suit buying, despite higher prices, due to better infrastructure and rental demand.
How to Avoid Costly Mistakes?
For land buyers, legal verification is non-negotiable. Confirm ownership at the state Land Bureau and hire a lawyer to investigate family claims, especially in disputed zones.
For home buyers, never skip professional inspections. A COREN engineer can spot foundation cracks in flood-prone areas like Lagos Lekki or Ibadan Ologuneru.
Both paths require documenting every transaction. For land, secure stamped survey plans and receipts for Omo-Onile settlements. For houses, insist on seeing the seller’s C of O and tax clearance.
If pressured to skip due diligence, walk away. It’s cheaper than fighting fraud later.
Should I buy land and build or buy a house? The Verdict—Which Path Fits Your Life?
Build if you prioritize long-term value, have a reliable builder, and can manage delays. This path rewards patience with customization and land appreciation, and it is ideal for young families creating legacy homes.
Buy if you need to relocate quickly, dislike uncertainty, or seek rental income. It offers convenience but demands thorough inspections. This is perfect for professionals moving for work.
Next Steps for Nigerian Buyers
1. Land Buyers: Begin with a surveyor’s plan and apply for the Governor’s Consent immediately.
2. House Buyers: Commission a structural audit and title search.
3. All buyers: Consult a trustworthy real estate agent that will explain everything to you in detail.
Need personalized advice?
Contact Odiana Homes and Properties LTD for a free consultation in any property in Ibadan.
Call or WhatsApp: +234-706-1615-062
Website: https://odianahomesproperties.com/
Email: odiana.properties@gmail.com
Office Address: Office 21, Trinity Galleria, Opposite Ultima, Alafin Avenue, Oluyole Extension, Ibadan.