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How diaspora investments are reshaping real estate market
How diaspora investments are reshaping real estate market
Nigerians in diaspora have emerged as a powerful force in the country’s real estate sector, injecting billions of naira yearly into property investments. Their contributions bring higher standards and global perspectives to local real estate practices
A growing number of Nigerians in the diaspora are investing in property back home, driven by emotional ties, rising incomes abroad, and economic uncertainty in host countries.
This trend is reshaping real estate in Nigeria, fueling a construction boom, price surges in certain urban areas, and triggering fraud and legal disputes.
The Central Bank of Nigeria (CBN) reported a significant increase in remittance inflows, reaching $553 million in July 2024, a 130 per cent increase from the corresponding period in 2023. In 2024, diaspora remittances to Nigeria reached $20.93 billion, a significant increase of 8.9 per cent year-on-year
Many remittances were channelled into real estate, as the diaspora seeks to establish a tangible presence back home, whether for retirement, family support, or as a hedge against economic uncertainties abroad.
perties, as well as Ibadan, Enugu, Benin City, Owerri, Uyo, Ilorin and Asaba – emerging cities offering affordability and lower entry thresholds, as well as appreciable returns.
Experts estimate that 70 per cent of investments in Nigeria’s real estate sector originate from the diaspora, highlighting their significant influence on the market. Over the past five years, Nigerians in the diaspora have remitted approximately $99 billion, underscoring their vital role in the nation’s economic development.
The Guardian investigation revealed that many diaspora Nigerians fall victim to scams involving fake land titles, double sales, or properties that don’t exist. Scammers often pose as agents, family members, or even developers. A UK-based Nigerian who sent funds to build a house in Enugu, only to discover that the land didn’t exist or had been resold to another buyer.
Lack of transparency in documentation processes complicates the worries of these Nigerians. Title registration and verification processes are often bureaucratic, slow, and riddled with inconsistencies across states. Buyers abroad can’t verify property ownership or development status in real-time.
Other challenges are that these investors rely on family members or acquaintances who may mismanage funds or give false updates, miscommunication, unfinished buildings, or outright theft, as well as insecurity in parts of Nigeria, especially rural or developing areas, which makes certain regions unattractive. As such, investors stick to “safe zones,” driving up prices in cities like Lagos and Abuja.
Amid the uncertainty and frustration, a new wave of platforms, legal reforms, and tech-driven real estate firms is working to rebuild trust with Nigeria’s diaspora. These solutions aim to offer transparency, accountability, and convenience—critical tools for anyone investing from thousands of miles away.
For instance, platforms are curating listings with verified titles and developer credentials. Some even offer video walk-throughs, digital documentation, and escrow services that hold funds until certain project milestones are met.
Startups are using blockchain technology to digitise and secure land title records, starting with pilot projects in states like Lagos and Oyo. This innovation makes it easier for diaspora investors to confirm land ownership remotely and reduces the risk of fraud.
Firms now offer diaspora-exclusive packages such as flexible payment plans, construction progress monitoring via apps or video updates and delivery guarantees and legal representation for non-resident buyers. Some developers even conduct property road shows in the UK, US, and Canada, allowing Nigerians abroad to meet company reps and sign contracts in person.
Now, the Federal Government, tech platforms and verified developers are stepping in to restore confidence. To cater for the diverse needs of Nigerians and expand access to affordable housing, the Federal Mortgage Bank of Nigeria and Nigerians in Diaspora Commission (NiDCOM) designed the Diaspora Mortgage Loan. The initiative is expected to open opportunities for Nigerians living abroad to invest in real estate back home in Nigeria.
There are ongoing engagements between the bank, NiDCOM and the Central Bank of Nigeria (CBN) aimed at ensuring seamless transaction processes. International Money Transfer Operators (IMTOs) are also being engaged to facilitate smooth transactions, with plans for a full rollout of the product this year.
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Experts urged the Federal Government to work to attract more foreign investment, while safeguarding the interests of its diaspora should be a national priority, not just for real estate, but for long-term economic development.
They called for a stronger legal protection, streamlined land registration, and widespread digital verification, as well as smart platforms and transparent developers to end heartbreak in real estate investments.
The Chairman, Lagos branch of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr Gbenga Ismail, admitted that Foreign Direct Investments (FDI), especially from Nigerians in the diaspora, contribute significantly to inflows in real estate.
According to him, the development has increased housing development, especially in urban and semi-urban areas, with a focus on mid- to high-end properties, enabling the rise of real estate tech platforms: Platforms offering virtual tours, online purchases, and escrow services cater to diaspora investors.
It has also improved building standards: Diaspora demands for quality and transparency have influenced developers to adopt better construction practices, boost GDP and employment: construction and related industries benefit from increased demand.
He disclosed that that the investors are motivated by the desire to own property back home, investment opportunities – high returns compared to markets abroad, retirement planning – building or buying homes to return to, family support – providing shelter for relatives or generating rental income and weakened naira – encourages conversion of foreign earnings into real assets.
To curb the risk associated with such investments, Ismail advocated the use of escrow services and verified developers, ensuring funds are only released when project milestones are met, and title verification – Partnering with professionals to verify property documents before purchase.
Other suggestions he made include investment through structured real estate funds or diaspora investment platforms, providing oversight and legal protection, government regulation and incentives, encouraging diaspora-friendly policies and easing land titling processes and the use of digital platforms, promoting transparency through tech tools that allow real-time project tracking and remote property management.
The Chairman, NIESV, Anambra State Branch, Raji Adewale, said the influx of FDI has profoundly redefined the contours of the nation’s real estate ecosystem. “These capital inflows have not only augmented liquidity within the sector but have also ushered in global best practices, modern architectural standards, and an enhanced appetite for structured developments.
“The sector has witnessed a proliferation of high-end residential estates, premium office complexes, and mixed-use developments, particularly in urban epicentres. This renaissance has spurred infrastructural expansion, elevated professional service standards, and bolstered investor confidence, thereby repositioning the real estate market as a cornerstone of national economic growth,” he said.
Adewale noted that motives underpinning diaspora investments are both sentimental and strategic, such as hedging against inflation and currency volatility, the desire to bequeath tangible wealth to descendants, and superior return on investment compared to stagnating overseas markets. He added that enhanced institutional frameworks like improvements in land administration, digital registries, and diaspora-targeted policies have instilled greater confidence.
He called on the government to sanitise the terrain and engender sustainable diaspora participation through digitisation of land records, establishing regulated Real Estate Investment Trusts (REITs), and enforcement of professional ethics to eliminate quackery, as well as accelerated judicial processes to expedite dispute resolution.
“The ascendancy of diaspora investments in Nigeria’s real estate sector is not merely a financial trend—it is a transformative force. With the right safeguards, institutional reforms, and strategic foresight, this capital can serve as a linchpin for sustainable urban development, national economic rejuvenation, and generational wealth creation,” Adewale added.
Former president of the African Chapter of the International Real Estate Federation (FIABCI), Mr Chudi Ubosi, said there has always been interest by corporate investors like the Rendevour in Alaro City in the FTZE in Lagos, but the greatest interest has been from citizens in the diaspora. “The greatest interest in the Nigerian real estate sector is internal. Private investors are reshaping the sector from Lagos to Abuja and nationwide.”
Ubosi explained that the challenges of those investments for companies are usually the inability to repatriate profits, security of investment and a couple of other environmental issues like poor electricity supply. “The risks of investment in Nigeria can be ameliorated purely by good governance and the provision of an enabling environment for businesses to thrive,” he said.
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Lagos Cracks Down on Illegal Real Estate Fees and Rising Rents
The Lagos State Government is intensifying efforts to make housing more affordable by cracking down on illegal rental charges and pushing for lower rent prices. Authorities have officially declared fees such as “caution fees” and “inspection fees” unlawful, urging real estate industry leaders to collaborate in easing the financial strain on tenants.
In a public statement issued by Ganiu Lawal, Deputy Director of Public Affairs, the government condemned the practice of imposing unauthorized fees, noting that such actions not only exploit tenants but also damage the reputation of property managers and landlords.
Key stakeholders — including the Nigerian Institution of Estate Surveyors and Valuers, the Real Estate Developers Association of Nigeria, and the Association of Estate Agents in Nigeria — recently met with state officials to address these issues. The meeting, jointly presided over by Commissioner for Housing Moruf Akinderu-Fatai and Special Adviser to the Governor on Housing Barakat Odunuga-Bakare, focused on tackling arbitrary rent hikes and excessive agent commissions while promoting ethical standards in the real estate sector.
Akinderu-Fatai emphasized the difficulties many families face in finding affordable housing, citing rising rents and hidden transaction costs as major barriers. He reaffirmed the government’s support for more flexible rent payment options, such as monthly and quarterly plans, in line with tenancy regulations.
Odunuga-Bakare also referenced the Lagos State Tenancy Law of 2015, which caps allowable real estate transaction fees at 10%. She called on industry players to align with government initiatives aimed at making housing more accessible and transparent for residents.
Leaders of the various real estate bodies expressed their willingness to work alongside the government. They pledged to assist in advocacy campaigns and public education initiatives that promote best practices within the property market.
The session concluded with plans to organize a broader stakeholder forum. This upcoming event will involve representatives from across the real estate value chain — including legal experts from the Nigerian Bar Association — to build stronger, collective support for protecting Lagos residents in housing transactions
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Pelican Valley Gets Additional Seven Approvals Within Few Weeks
ABEOKUTA- A foremost real estate firm in Nigeria, Pelican Valley Nigeria Limited has gotten additional seven building Approvals for his existing clients who are willing to commence building constructions in it Pelican Brief Estate project in Kobape, Ogun State.
Pelican Valley Nigeria Limited is a Nigerian real estate firm behind Pelican Valley Estate, Laderin; Pelican Brief Estate, Pelican Ecostay Apartments and Pelican Greenish Acres Farm Estate at Kobape axis of Ogun State.
It was gathered that, at Pelican Brief Estate, over 900 Nigerians in diaspora have keyed in to the project, with over 150 ongoing building construction in the estate. Over 15 building projects are in there various completion Stages, while about 10 landlords have already moved into the Estate.
According to the director of Operations of the company, Tpl Olumide Akintomide, the new sets of 7 clients that their projects have been successfully approved by the Ogun state Bereau of Urban Planning and Physical Development are Mr. Sokale A O , Mr. O..O Fajimi, Also, Mr. Olaleye Gbolahan O, Mr. Rolan A Alade and joint project by Mr. Gideon O Omagbemi and Mrs, N. Okpa have been gotten full approval to commence their residential development, while Mr. A
T. Oyeyinka and Mrs. Chika Vivian got approval of a Proposed Farm Development at the Pelican Greenish Acres Farm Estate.
Tpl Akintomide stated that In another development, a Nigerian-US based, Mr. Babatunde Abdullahi along with other numerous Clients will soon havr their projects approvals in few weeks time, as the firm has so far gotten over 150 building approvals for existing and potential landlords in the Estate within 2Years
The Director of Operations however congratulated the clients and appreciated them for believing in the vision of the Pelican Estate CEO, Ambassador (Dr) Babatunde Adeyemo, pledging that the Company will leverage on it good legacy and will not relent or deviate from integrity mode of operation that the company has been known for.
He, however, advised all the successful clients to commence development within the stipulated period in there various plots allocation documents, noting that any violation of the Estate allocation terms and conditions with attract a stiff enforcement. – Culled from – The Encounter
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Coastal road: Land prices jump, new investment opportunities open
…as construction work on Phase 1 nears completion
In a very dramatic manner, parcels of land along the 700-kilometre Lagos-Calabar coastal highway have, in the last six to 12 months, seen significant price increases, more so as construction on Phase 1 of the project is nearing completion.
The first phase of the highway, measuring 47.47 kilometres, starts from Ahmadu Bello Way in Victoria Island, Lagos, and ends in Lekki around the Lekki Deep Sea Port and Dangote Refinery axis. It is expected to be completed by May 29, 2025.
People who invested in land in all the areas around Lekki Free Tade Zone, Eleko and Ibeju Lekki had been enjoying considerable value appreciation as a result of the coming of developments such as Dangote Refinery, Lekki Deep Sea Port, among others.
The passing of the coastal highway through this axis has raised property values a lot higher in th as many investors swoop on the area, buying just any available land in anticipation of a further rise in prices in the coming years
“You need to visit these areas, especially all the areas around Ibeju Lekki, and see the level of investment going on there. People are taking position because when the coastal road is completed, you can drive to Victoria Island in less than one hour,” Ololarenwaju Kuyebi, managing director, GMH Luxury, said in an interview recently.
“Land value has gone up by more than 200 percent in the last 12 months in Ibeju Lekki. I know of someone I advised to key into the emerging opportunities in that axis. He bought three plots of land at N1.5 million each and, today, one plot is over N3 million,” he added.
Kuyebi disclosed that people are investing in land banking in that area, describing it as a wise investment decision that will give good return on investment in time to come.
Some real estate development companies are also perfecting plans to invest in that axis in the expectation that demand will come. Odunayo Ojo, the chief executive of UPDC , disclosed recently that Ibeju Lekki is part of their new towns development strategy.
Peter Oyedepo, a Lagos-based realtor, who described the coastal road as a transformative piece of infrastructure that promises to reshape Nigeria’s coastlines, enhancing connectivity and driving economic growth, says investors have every reason to invest along the coastal road.
Oyedepo explained recently that because the coastal road connects cities and towns, making once remote places accessible, it will drive population growth and real estate demand in those cities and towns.
He added that besides its economic growth potential, the coastal road will boost tourism. He explained that because the road passes through beaches, forests, and cultural landmarks, it is a prime spot for tourism-related investment such as resorts, hotels and vacation rentals.
Oyedepo advised that people can invest in both residential and commercial properties such as luxury buildings, affordable apartments, office facilities, malls, warehouses, among others. He hopes that all these will be in high demand in no distant future.
The federal government is already taking position along the coastal highway, as the first phase of the road construction approaches completion deadline
The government is planning to create tolling stations and construct tourist centres along the highway, expecting to draw in investors and enhance the country’s economy.
David Umahi, the minister of works, who disclosed this during an inspection tour of the road recently, said the entire road stretch measuring 700 kilometres is expected to be completed within eight years.
“Along the corridor, you have some lands that have been acquired for tourism, industries, factories, housing estates, etc. So, these are the road architectures that will be seen on this highway. And we also plan to have tolling units,” Umahi said.
According to him, the more than $12 billion superhighway project is also expected to be solarised for easy movement at night and security measures. It is also expected to have a flyover to avoid traffic jams. –
BUSINESSDAY
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