🚨 HOW DO I KNOW IF LAND IS A GOOD INVESTMENT? 7 FACTORS THAT CAN MAKE THE DIFFERENCE BETWEEN BUYING LAND AND BUILDING WEALTH
Not every cheap piece of land is a bargain. And not every expensive location guarantees appreciation.
So, how do you evaluate land investment in Nigeria?
Here is my 7-point land investment checklist.
1️⃣ LOCATION: Is the Land Strategically Positioned?
Is the land near existing or officially planned roads, bridges, industries, institutions and other facilities that can drive demand?
Consider Ibeju-Lekki, with major economic drivers including the Dangote Refinery, Lekki Deep Sea Port, Lekki Free Trade Zone, Omu Creek Bridge and other infrastructure developments.
2️⃣ TERRAIN: Is the Land Suitable for Development?
Investigate drainage, flooding history, accessibility and potential development costs.
The Itomu–Elerangbe axis is one area buyers may wish to investigate for its terrain and elevation. However, verify the specific plot's elevation and flood risk independently before investing.
3️⃣ TITLE: Can the Seller Prove Ownership?
Is the land supported by verifiable title documents, such as a government allocation or Certificate of Occupancy (C of O), where applicable?
Independently confirm ownership, survey details and legal status. In parts of Ogun State, freehold interests may also be worth investigating, subject to proper legal verification.
4️⃣ PURPOSE: What Do You Want to Achieve?
Are you buying to build, farm, develop or hold for future appreciation?
Your objective determines the right property. If you intend to build, consider whether the land is suitable for residential, commercial or industrial purposes.
5️⃣ DUE DILIGENCE: Have You Checked Everything?
Investigate ownership, boundaries, government acquisition, encumbrances and disputes before making payment.
Never buy blindly.
6️⃣ PRICE: Are You Getting Real Value?
Compare similar properties and factor in documentation, statutory charges and other expenses.
Ask questions: Is the price all-inclusive? Will you be responsible for additional documentation, infrastructure or development costs?
7️⃣ GROWTH POTENTIAL: What Could Drive Future Demand?
Look beyond today's price. Study infrastructure, economic activity, population growth, genuine demand and realistic resale prospects.
A developing area may offer opportunities, but appreciation is never guaranteed.
📍 BADAGRY VS. IBEJU-LEKKI: A QUICK COMPARISON
* Badagry: Some plots reportedly purchased for ₦750,000–₦1.5 million in 2021 are estimated to be worth ₦3 million–₦5 million in 2026.
Ibeju-Lekki: Some early-stage plots reportedly sold for ₦500,000–₦3 million, while certain plots now command ₦25 million or more, depending on location, title, infrastructure and other factors.
These are illustrative market estimates, not verified averages for either area. Individual property values vary considerably.
Ibeju-Lekki's concentration of major industrial and infrastructure projects makes it an area worth studying, but buyers should assess each property independently.
MY FINAL WORD ON LAND INVESTMENT
Unlike shares, land is not typically repriced every second on a public exchange. However, land is not risk-free, and appreciation is never guaranteed.
Poor title, flooding, overpricing, weak demand and difficulty finding a buyer can undermine your investment.
But when you choose the right land at the right price, verify the title and conduct proper due diligence, you create a stronger foundation for long-term wealth creation.
Save this 7-point land investment checklist before your next purchase.
Trust is essential in business, but never let trust replace due diligence.
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