by Christopher Nwankwo
There are two categories of people who do not know what an off plan property is. The first have never heard it all, while the others have picked up the word in ads or conversations but do not understand how getting an off-plan property works.
In this guide, you’ll learn exactly what off-plan property means, how it works, the benefits and risks, and smart tips for making the most of your investment.
What Is An Off-Plan Property?
Off-plan property in Lagos real estate (and globally) are projects you buy before construction is finished, sometimes even before the first brick is laid. Instead of touring a completed home, you make your decision based on floor plans, 3D visualizations, and the developer’s reputation.
Ever paid for something before seeing it in person, maybe a pre-ordered phone, an album, or a flight ticket months before your actual travel? That’s exactly what buying an off-plan property feels like, only this time, it’s not just a gadget or a flight, it’s a home or investment property.
This approach to buying property is becoming increasingly popular, especially in fast-growing markets like Lagos, Dubai, and London. Investors are drawn to the potential for early-bird discounts, flexible payment plans, and strong capital appreciation by the time the project is completed.
How Getting an Off-plan Property Works
Buying off-plan property is surprisingly straightforward. Here’s a simple step-by-step breakdown of the process:
- Project Launch – The developer announces a new housing project, sharing brochures, floor plans, and 3D renderings to attract buyers and investors.
- Unit Reservation – Buyers choose their preferred unit (apartment, villa, or plot) and pay a reservation fee or initial deposit. Prices at this stage are often lower than they will be once construction is further along.
- Payment Plan – Instead of paying everything upfront, buyers spread payments across the construction timeline, often in monthly, quarterly, or milestone-based installments.
- Construction Period – The developer builds the project within a projected timeline while buyers keep up with their payment schedule.
- Completion & Handover – Once construction is done, the property is officially handed over. Buyers can move in, rent it out, or resell it at the (often higher) current market value.
Example:
Mrs. Ada Beercroft reserved a 2-bedroom apartment in Brum Heights 7 during the launch phase for ₦200M. By the time the project was completed 18 months later, the market value had risen to ₦290M, giving her an instant ₦90M gain, even before renting it out.
Benefits of Buying Off-Plan Property
Buying off-plan comes with several advantages that make it appealing to both homebuyers and investors:
Lower Purchase Price
Off-plan properties are usually sold at a discount compared to completed homes. This gives you the chance to “buy low” and lock in a great deal before prices go up. This makes buying off-plan property in Lagos especially attractive as prices often rise before completion.
Capital Appreciation
As construction progresses, the property’s value often increases. By the time it’s completed, you could already have built equity, perfect if you plan to sell or refinance later.
Flexible Payment Plans
Instead of paying the full price upfront, you spread payments across the construction period in manageable instalments. This makes it easier on your cash flow compared to buying a finished home outright.
Customization Options
Some developers allow buyers to choose finishes, color schemes, and sometimes even minor layout adjustments. This gives you more control over how your home will look.
Brand-New Property
When the off plan project is complete, you’ll be the very first owner. No need to worry about repairs, renovations, or hidden maintenance issues that come with older homes in Lagos.
📌 Quick Recap: 5 Reasons to Buy Off-Plan
✅ Lower price than completed homes
✅ Potential for strong capital growth
✅ Easy-to-manage payment plans
✅ Ability to personalize finishes
✅ Move into a brand-new, never-lived-in home
Call 07046118960 now to access some of the best off-plan properties in Lagos Island.
Risks of Buying Off-Plan Property
While off-plan property can be a great opportunity, it’s not without risks. Being aware of them helps you make a smarter decision. These are common risks of buying off-plan property in Nigeria or Lagos, and why doing due diligence matters.:
- Construction Delays
Projects can take longer than expected due to funding issues, supply chain problems, or unforeseen circumstances. This can push back your move-in date or investment plans. - Developer Risk
If the developer has financial trouble or poor management, the project could be delayed or in worst cases, abandoned. This is why checking the developer’s track record is crucial. - Market Fluctuations
Property values can go up, but they can also go down. If the market cools before completion, your property might be worth less than what you paid. This is true for some property markets except Lagos that has not recorded steady growth in property value for decades. - Limited Inspection Before Purchase
Since you’re buying before completion, you rely on plans and renders. The finished product may not always look exactly as you imagined. - Payment Commitments
Even if your circumstances change (job loss, relocation), you’re still contractually obligated to make payments until the project is complete.
⚠️ Quick Tip:
Mitigate these risks by:
- Researching the developer’s past projects
- Reading the contract carefully
- Asking about refund policies and completion guarantees
- Keeping a financial buffer for unexpected costs
Key Things to Check Before Buying an Offplan Project
Before committing to an off-plan property in Lagos or anywhere else, do your due diligence. Here’s a checklist to guide you:
Developer’s Track Record
Research the developer’s reputation. Look at their past projects, delivery timelines, and reviews from previous buyers. A reliable developer is one of your biggest safety nets.
Title Documents
Ensure the land and project have proper documentation such as a Certificate of Occupancy (C of O), Governor’s Consent, or other valid titles depending on your location. This protects you from legal disputes later. Hiring a lawyer can make this more efficient.
Payment Terms & Hidden Charges
Understand the full cost of ownership. Beyond the purchase price, ask about development fees, legal fees, infrastructure levies, and any other charges.
Project Timeline & Delivery Guarantee
Get a clear completion date and ask if there are penalties or compensations if the developer fails to deliver on time.
Location & Future Development Plans
Consider the area’s infrastructure, road networks, and upcoming projects. A good location can significantly boost your property’s value over time. This is why you should ensure you pick only the best places in Lagos to live or invest.
Pro Tip:
Create your own mini checklist and tick off each point before signing the contract. The extra effort now can save you from costly mistakes later.
Who Should Consider Buying Off-Plan House?
Off-plan property isn’t for everyone but it can be a perfect fit for certain types of buyers. Here’s who should consider it:
- First-Time Buyers
If you’re just entering the property market, off-plan homes often have lower entry prices and flexible payment plans, making them easier to afford. - Investors Seeking Capital Gains
Buying early allows investors to benefit from price appreciation during construction. This can lead to significant profits by completion, even before renting or reselling. - Diaspora Buyers
Nigerians (and other nationals) living abroad often use off-plan purchases to secure a future home or investment back home without needing to be physically present during construction. - People Who Want Customization
If you want your home to reflect your taste, off-plan allows you to choose finishes, layouts, and sometimes design upgrades before the property is completed.
Common Myths About Off-Plan Property
There’s a lot of misinformation about buying off-plan, and it can scare people away from good opportunities. Let’s bust some of the most common myths:
“Off-Plan Property Is Always Risky.”
While there are risks, working with reputable developers and doing your due diligence can make off-plan purchases just as safe — if not safer — than buying resale properties.
“You Can’t Sell Before Completion.”
Many developers allow assignment sales (also called flipping), which let you sell your unit before it’s completed, often at a profit. Check your contract to confirm this option.
“The Finished Property Never Matches the Renderings.”
This can happen with unreliable developers, but trusted ones usually deliver close to or exactly what they promise. Visiting past projects is a good way to verify quality.
“You Need to Pay 100% Upfront.”
Most off-plan purchases use flexible payment plans, sometimes spread across 12–36 months. This makes it far more affordable than paying the full price at once.
“It’s Only for Investors.”
Off-plan isn’t just for people chasing profit, it’s also a smart choice for end-users who want a future home, customized to their style, at today’s price.
Off-Plan Property Trends in 2025
Dominance of Off-Plan Sales in Total Transactions
In many fast-growing markets like Lagos and Dubai, off-plan makes up a large majority of sales. For example, in Q1 2025, off-plan transactions accounted for about 68-70% of all residential sales. Estate Intel reported similar data on projects within the Lekki Axis.
Strong Price Growth, But Signs of Moderation
There has been rapid price appreciation in off-plan properties, especially in luxury and emerging districts. But price growth is beginning to show signs of slowing. Some regions are forecasting a significant price correction in 2025-2026 due to rising supply.
Emergence of Mid-Market / Affordable Luxury Homes
Developers are increasingly targeting buyers who want luxury-style features but at more accessible price points. This “affordable luxury” trend is especially visible in suburban or emerging zones.
Flexible & Buyer-Friendly Payment Plans
One of the biggest draws in 2025 is improved payment flexibility. Down-payments are lower; many schemes let buyers spread payments during construction (or even post-handover) to reduce upfront burden.
Smart, Green, & Tech-Integrated Developments
Buyers are expecting more sustainability features (like solar panels), smart home tech, and eco-friendly community planning. These aren’t “nice-to-haves” anymore, they are increasingly important decision-factors.
Infrastructure and Government Policy Driving Value
Large-scale master plans, transport/transit expansions, better road access (Coastal Road), regulatory reforms (stronger protections for buyers, transparent title/escrow systems) are supporting off-plan demand. Inland areas or suburbs that are getting new infrastructure often see faster value growth.
Higher Demand from International Investors
Global buyers from Asia, Europe, and even Nigerians in the diaspora continue to invest in off-plan projects in Lagos due to improving regulations, stable growth, and exponential rental yields.
Risk of Oversupply & Price Correction in Some Markets
Because many new off-plan units launched, especially in high-growth cities, there is concern about future oversupply. When many units complete around the same time, buyer demand may not keep up, which could slow down growth or even reduce prices in some segments.
Preference for Smaller/Compact Units in Some Areas
As prices rise, many buyers are choosing smaller / more affordable units, studios or 1-bedrooms, particularly in locations where commuting is easy. These units appeal both to end-users and to investors seeking rental demand.
Conclusion
Off-plan property is one of the smartest ways to get into real estate. It offers lower entry prices, flexible payment plans, and the potential for impressive capital appreciation.
That said, it’s not without risks. The key is to do your homework,
check the developer’s track record, confirm title documents, and understand the payment structure before signing anything.
Ready to Explore Off-Plan Opportunities?
Whether you’re buying your first home or adding to your investment portfolio, now is a great time to consider off-plan property.
Click here to talk to our property advisors today to find verified, secure off-plan projects that match your budget and goals.
