by Christopher
If you’re in the market for land in Lagos (or any part of the world), one critical question will shape your choice: Is buying from a real estate developer smarter than buying from an individual seller?
Why does this matter?
In the quest to own land in Lagos, so many people have made the wrong choice and become victims of:
- Costly legal battles over ownership
- High developmental cost due to a lack of infrastructure
- Low resale value for those who buy land in certain areas
- Zoning violations, which can lead to demolition or revocation of ownership
By the end of the article, you’ll be able to identify the best party to buy land from and secret red flags to watch out for.
Let’s dive in!
But before we do, here’s something you’d love:
If you’re ready to own a prime land in Lagos [Idera] with full documentation and instalment payment plans, call Capital Gardens at 07084070008 today to book a free inspection.
Buying Land in Lagos From a Real Estate Developer vs Buying From Individual Seller: Major Considerations
- Estate design
- Instalment payment [Flexible payment options]
- Access to financing
- Compliance with laws and regulations
- Assured transparency
- Professionalism and credibility
- Legal support
- Expertise/Market knowledge
- Transaction process
- Increased investor flexibility
- Property development
Estate Design
A larger percentage of the land in Lagos [more than 50% according to this Taylor & Francis report] is like the world before creation, formless and lacking in the faculties that increase the value of land.
This means that:
- The resale value of properties in these places is not usually high
- Developing them costs a ton more than necessary
- The necessary infrastructure is not in place
- There could potentially be zoning and land use issues
- Safety and security concerns, etc
Smart people dodge the aforementioned bullets by buying land from a real estate developer in Lagos with a track record of selling properly-planned properties, saving themselves the headache of dealing with individual sellers
Due to regulations and “branding,” these companies also plan their development in a way that factors in sustainability, profitability, and the aesthetic value of the land.
Because the truth is, most private individuals either inherited or bought their lands cheap in undeveloped parts of Lagos.
They consider the land an investment in its own right. Hence, they don’t bother committing a penny to things like professional planning, to make the land more attractive or valuable to investors.
But this is not the case with real estate developers like Nedcomoaks, who often go above and beyond to design the layout of the land and surrounding areas, pinpointing areas for future development.
Instalment Payment
Everyone agrees that land is one of the safest and smartest investments, in terms of that asset class. However, while most people would like to own land in Lagos, the majority simply cannot finance that dream.
Hence, they need credit facilities like payment plans to facilitate their land investment dreams. But banks [especially mortgage banks] have extremely high interest rates, so they often rely on provisions from sellers.
However, how many private landowners can afford to let you drag out payment over months or years?
This is where real estate companies come in, providing the much-needed flexible payment options for prospective buyers like you.
Related Article: Best Guide For Prospective Landowners in 2025
Real Estate Developers vs. Private Landowners in Lagos: Who Offers Better Payment Plans to Prospective Land Investors?
This is almost a commonsensical question. But a few people asked this during a recent real estate masterclass at Capital Academy, and the list below encapsulates the answer:
1. Larger Financial Resources
The average real estate company has access to more funding than most private individuals. This means they can afford to wait out the payment duration without suffering any or much loss.
Hence, making them the perfect choice for individuals looking to own a plot of land or a home through instalment payments
2. Legal and Financial Security
The truth is, most people know that selling a property in Lagos to someone based on down payments is a huge risk. This is why you need legal and financial hedges to:
- Prevent default & fraud
- Secure revenue and cash flow
- Ensure clear ownership transfers and protect both parties
- Compliance with state, federal, and industry laws
- Enable asset recovery or resale when the buyer defaults
Unlike private individuals, most real estate companies like Victoria Crest Homes have proactive legal security. This often includes clear legal frameworks, adequate protection against defaulters, the use of standardised contracts, and compliance with necessary regulations.
As for financial security, real estate companies have better risk assessment structures and an abundance of financial resources, as mentioned above.
3. Market Competitiveness
By offering payment plans, real estate companies stand out in this competitive market because they can reach a wider audience and convert those who need flexible payment plans.
4. Smoother Accessibility for Buyers
This sort of borrows from No. 3 above. Like we mentioned earlier, there are barriers impeding people from buying land, chief among them being the financial barrier.
An instalment payment smooths out the process of land ownership for those who are unable to put together lump sums for the property. And of course, real estate developers have an upper hand in this regard.
5. Risk Management
Due to their legal and financial resources, operational support systems, and ability to access buyers’ creditworthiness, real estate companies can absorb and spread risks associated with the instalment payment plan options. This is why real estate companies are top on the list of options for prospective landowners in Lagos.
Access to Financing
This point has been overflogged in the preceding lines, but it deserves a standalone paragraph due to its importance to this discourse.
Naturally, the average person in Nigeria has access to some level of financing. But real estate companies usually get more access due to their profitability and the solutions they provide [bridging the growing housing gap].
Sources of funding for real estate companies in Lagos include:
- Private equity financing and joint ventures
- Commercial bank loans and mortgage financing
- Development and construction financing
- Institutional funding and government programs like the FMBN
- Foreign direct investment
- Sukuk financing [Islamic bonds]
These financing options are only possible because the real estate companies are not only solution-oriented, but have trackable credibility, cash flow stability, handle large-scale projects, have good or great collateral, and possess better risk management facilities.
Compliance With Relevant Laws & Regulations
One of the major trends in the Nigerian real estate industry is property repossession, i.e, demolishing buildings and revoking land ownership [through the authority of the Land Use Act of 1978].
This is why there has been a whirlwind of outcry from Nigerians who have lost homes and landed properties to this. The most popular one is the recent demolitions that followed the Lagos-Calabar Coastal Highway construction.
In honesty, some of the demolitions are illegal or stem from unfair government policies. However, some of the demolitions, especially in Lagos, are a result of noncompliance with zoning and other laws.
In terms of the latter, you’re safer buying land in Lagos from a real estate developer because they are more regulated than individuals. This regulation means they are mandated to:
- Register their estates
- Obtain necessary approvals
- Register and get approval on the layout plans
- Get Environmental Impact Assessment (when necessary)
Generally, the average real estate developer in Lagos operates on the foundation of regulations that guide their establishment, assets, and processes.
However, with private individuals, you’ll most likely encounter land disputes, demolition risks, or loss of investment due to:
- Dispute among family members
- Lack of verifiable documents
- And a general lack of legal structure on their part that protects you
This is why most people prefer buying land in Lagos from real estate developers.
Transparency
One recurring problem in Nigeria’s real estate industry is the lack of and blatant disregard for transparency in the transaction cycle.
When buying land in Lagos from real estate developers vs transacting with individual sellers, you will notice this negative pattern.
Some real estate developers are often guilty of this, but oftentimes, private land owners are the popular culprits.
Transparency in a land transaction essentially means that both parties are honest about all aspects of the transaction, especially as it pertains to information sharing.
Not being transparent in any transaction is tantamount to a scam or criminality. And yes, Lagos’ real estate market is not lacking in this.
In consideration of the subject (Land in Lagos: Real Estate Developer vs Individual Seller), below are some notable scams to watch out for when buying land in Lagos.
Common Land Scams to Avoid When Buying Property in Lagos (From Developers & Private Sellers)
The list below is a sketch of sketchy things land owners or sellers in Lagos, on both sides of the fence, have done in land transactions.
- Concealing property errors like structural defects, constant flooding, presence of hazardous substances, etc.
- Inflating property size or boundaries
- Withholding encumbrances like mortgages or liens
- False claims regarding amenities
- Hiding title defects
- Using forged or fabricated documents
- Not disclosing co-owners or other parties of interest in the deal
- Inflating land value
- Hidden costs and fees
The above are a few of the non-transparent practices prevalent in real estate transactions in Lagos when considering the subject (Land in Lagos: Real Estate Developer vs Individual Seller).
However, due to the highly-regulated nature of developers and the industry, you have a higher possibility of experiencing transparency in a real estate transaction with developers, than with private individuals who have less regulatory oversight and little to no professional transaction system.
Professionalism and Credibility
Professionalism is a major ingredient lacking in Lagos’s informal real estate sector, especially among major stakeholders like landowners and landlords.
From impolite treatment to erroneous documentations that can usher you into a lifetime of court cases, the list of unprofessional experiences in the hands of landlords continues to grow.
Imagine trying to buy land advertised for sale, and the seller is inconsistent in communication, has little or no knowledge of the market [leading to over-stating the value of the land], takes forever to present certain documents because they are either disorganised or lost, or is ignorant in navigating the legalities of the deal.
This not only frustrates you during the process but opens you up to further frustration down the road.
But with real estate companies, their brand makes them maintain and offer high levels of professionalism in their dealings. When buying land from a real estate company in Lagos, you’d most likely have access to
- A dedicated sales team
- A clearer understanding of the market
- Pre- and post-sales support
- Efficient communication flow
- Streamlined systems of transaction, etc
This makes them the number one choice for intending landowners in Lagos.
Another aspect of this is credibility.
Distrust is at an all-time high in the Nigerian real estate industry. This makes prospective buyers look at every aspect of the transaction through suspicious lenses, especially while dealing with private sellers.
However, buying from a real estate company saves the customer all the questions of trust, as the average real estate company has an established brand usually built on the foundation of trust and credibility.
Legal Support
Bits of this subject have been featured in previous parts of this conversation. This is because a land sale is more than just a financial transaction. It has legal implications and roots, too.
In the “buying land from private individuals vs buying land from real estate companies” conversation, you’re better off dealing with the latter, who possess the legal machinery to verify, process, and transfer land ownership easily.
In more words, purchasing land from a real estate company gives you access to pertinent legal services such as:
– Title verification and due diligence
– Drafting and vetting legal documents
– Assistance with government approval
– Conflict resolution
– Ensuring compliance with zoning and land use laws
– Protection against fraud
– Post-sale support, etc.
Expertise/ Market knowledge
The individual with a land for sale might be anybody, a doctor, a farmer, an entrepreneur, or they might even be jobless—probably inherited the land somewhere in Lagos.
This often means they have little or no knowledge of the prevalent land laws, documentation process, and other pertinent information involved in the process.
This, of course, increases the margin of error in your land acquisition strides, and explains why more people suffer losses from private buys compared to dealing with real estate companies.
Expertise is absolutely important in every transaction, especially one as sensitive as a land transaction worth millions or billions in some cases.
This means if you want to own land in Lagos, rather than private sellers, you need access to a real estate developer that undoubtedly has
- In-depth knowledge of the market, systems, and processes
- Legal team with a sound understanding of the legal terrain
- A fool-proof understanding of due diligence and the title verification process
- A reliable understanding of and systems for risk management
Handling transactions
There’s a popular saying, “there’s no bad transactions, just bad parties.” This is because the parties to any transaction determine how good or bad it is.
It invariably means that if you’re looking to buy land in Lagos, top of your list when choosing a landowner to buy from is choosing someone with extensive experience and mechanics for processing the transaction efficiently.
You want someone skilled in clear documentation, escrow and other financial processing, property protection, and a standardised method of handling property deals without fail.
In this regard, real estate companies stand above private individuals who are not adequately equipped in experience or systems to provide a foolproof transaction process.
In a nutshell, go with the party that doesn’t just have a land for sale in Lagos, but also possesses the requisite track record to make your transaction seamless.
Increased investor flexibility [Land in Lagos: Real Estate Developer vs Individual Seller]
As a real estate investor, it is important to have options that let you adapt, finance, and scale your investment, all of which are under the umbrella of investor flexibility.
Purchasing land from a real estate developer is 3x better, as these companies offer
- Flexible payment options
- A variety of investment choices, including joint venture opportunities
- Properties in strategic and varying locations
- Scalable real estate investment
- Properties within a development
- Value-added services like property management, building plans, resale services, etc
This is in contrast to buying from private individuals with fixed plots, lump sum payment requirement, no flexible investment options, and the customary absence of value-added or post-sale services.
Property development
Whether you’re buying land to build a personal residential building or for commercial purposes, one thing we can all agree on is that a land purchase is a major investment.
Another thing we can agree on is that the value of your property increases with the pace of development in that location.
However, according to Statista, over 60% of private lands in Nigeria are inherited. With a larger percentage of that in remote or undeveloped areas. It invariably means that a large portion of these lands are situated in development-starved places.
Hence, it might take ages before Nigeria’s “fast-growing” development gets to them.
However, this is not the case with the average real estate companies, for whom landed properties are an investment. Thus, they spend a great deal buying land either in developed parts of Lagos, areas the government will develop, or locations the real estate companies have earmarked for private development.
In a nutshell, when dealing with the average real estate company, you buy a property
– Within master-planned communities with access to infrastructure
– With authentic zoning and permits
– With a Higher resale value
– With a Higher compliance rate with local laws and construction standards
– And a high future development potential
When Is A Good Time to Buy Land From a Private Seller in Lagos?
It is more than advantageous to always buy land from real estate developers. However, there are certain times or cases when buying from private individuals may be advantageous or necessary.
These include:
- When the private land owner is willing to sell way below market value [distress sale]
- When you need a customizable plot (as developers occasionally sell only standardised plots)
- When you have time and expertise for due diligence, i.e checking title deeds, zoning laws, survey accuracy, etc
- When you’re buying land in rural areas where there’s no developer
- When you’re buying land for purposes beyond what developers usually permit
- Or when you’re looking for new ways to spike your blood pressure
What to Do When Buying From Private Individuals in Lagos (in the Absence of Real Estate Developers)
– Hire a real estate attorney for the title and contract
– Conduct a land survey
– Check local zoning laws
– Investigating unpaid taxes/liens on the land
– Meet the neighbours to inquire about unrecorded disputes
Conclusion – Land in Lagos: Real Estate Developer vs Individual Seller
The best time to buy land in Lagos from a real estate company is NOW & ALWAYS, especially as Capital Gardens by Nedcomoaks Group is offering 300-600 SQMS of land at affordable prices.
Call 07084070008 now to take advantage of their payment plan.
Frequently Asked Questions
1. What is the difference between buying land from a real estate developer and buying from a private individual in Lagos?
Buying land from a developer typically includes documentation, infrastructure, and a more formal process, while private individuals may offer lower prices but come with higher risks and less structure.
2. Is it safer to buy land from a real estate developer in Nigeria?
Yes, buying from a reputable developer reduces the risk of land scams, double sales, or ownership disputes, especially in places like Lagos, where land fraud is common.
3. Are lands from private individuals cheaper than those from developers?
Often, yes. Lands sold by individuals may have lower prices but usually lack title verification, infrastructure, or legal guarantees — increasing long-term costs and risks.
4. What documents should I expect when buying land from a developer?
You should receive a contract of sale, deed of assignment, survey plan, and title documents such as C of O or excision. Developers usually handle these professionally.
5. What are the risks of buying land from a private seller?
Risks include fake documents, family land disputes, community (omo-onile) issues, and double allocation. Always involve a lawyer and verify the title.
6. Do I still need a lawyer if I’m buying from a real estate developer?
Yes, it’s always advisable to have your legal representation review contracts and confirm due diligence, even when buying from a developer.
7. Which is better for investment: land from developers or private sellers?
Developer lands offer more security and potential appreciation due to estate planning, but individual lands may offer higher returns if you can manage the legal risks.
How can I finance buying land and building a house in Lagos?
You can finance land and home construction in Lagos through personal savings, mortgage loans, cooperative societies, or real estate developer payment plans. Some developers also offer instalment options spread over months or years.
Can I buy land in Lagos without money up front?
Yes, some real estate developers offer flexible payment plans with little to no initial deposit. You can also explore options like land cooperative schemes or joint ventures that require minimal upfront cash.
Is it cheaper to buy land and build a house or buy a finished property from a developer?
Buying land and building may be cheaper in some cases, especially if you manage construction costs wisely. However, it can be time-consuming and stressful. Buying from a developer is more convenient and often includes infrastructure, security, and amenities.
Is it more profitable to buy and sell land or invest in rental properties like apartments and houses?
Both are profitable, but in different ways. Land appreciates over time with little maintenance, while rental properties generate passive income. Your choice depends on your investment goals. Do you want capital growth or steady cash flow?
Is it a bad idea to buy land and hold it without developing?
Not necessarily. Buying land and holding it can be a smart long-term investment, especially in fast-growing areas. However, it’s important to choose a location with high appreciation potential and secure proper documentation.
How do I buy land in Lagos safely?
To buy land in Lagos safely, verify the title documents, conduct a land search at the Land Registry, work with a trusted real estate agent or developer, and consult a lawyer before signing any agreement.
Where is the best place to buy land in Lagos?
Popular and fast-developing areas include Ibeju-Lekki, Epe, Sangotedo, Ajah, Idera, and Abijo. These locations offer growth potential and a mix of affordability and access to infrastructure.
What are common land scams to avoid in Lagos?
Common scams include multiple allocations of the same land, fake or forged documents, and dealing with unauthorised family members (omo-onile). Always verify titles and buy through trusted sources.
Blog Post – Land in Lagos: Buying From Real Estate Developer vs Individual Seller