The Ultimate Guide to Nigeria’s Online Real Estate Investing

Quick Takes

How much does it cost to start this?

The cost of starting an online real estate investment in Nigeria depends on the type and scale of the investment, as well as the platform and plan you choose.The minimum amount you need to start an online real estate investment in Nigeria ranges from 10,000 naira (about $11) to 500,000 naira (about $557), depending on the platform and plan.

For example, if you want to invest in a crowdfunding platform like Risevest, you need at least 50,000 naira (about $56) to buy a unit of a property in the US. If you want to invest in a REIT platform like Wealth.ng, you need at least 10,000 naira (about $11) to buy a share of a property in Nigeria. If you want to invest in a land/house flipping platform like Coreum, you need at least 100,000 naira (about $111) to buy a fraction of a property in Nigeria. If you want to invest in a property development platform like Keble, you need at least 500,000 naira (about $557) to buy a fraction of a property in Nigeria.

These are just some examples of the cost of starting an online real estate investment in Nigeria. You can also explore other options and platforms that suit your needs and budget. However, you should also consider the risks and returns of online real estate investment, as well as the legal and regulatory aspects of the industry.

How much can you make per month?

The amount of money you can make per month from online real estate investment in Nigeria depends on various factors, such as: 

• the type and scale of your investment, 
• the platform and plan you choose, 
• the market demand 
• price of your properties, 
• the cost of production and operation 
• the level of competition. 

However, we can provide you with some estimates of the average monthly income of some online real estate investment platforms in Nigeria. These are only rough figures and they may vary depending on your skills, experience, and market conditions. Please note that these estimates are in Nigerian naira and U.S. dollars, and they are based on the exchange rate of 1 USD = 896.50 NGN as of January 2024.

• Risevest: A Risevest investor can make an average monthly income of 15,000 naira (about $17) from renting out a unit of a property in the US, and an average annual income of 30,000 naira (about $33) from the appreciation of the property value.
• Wealth.ng: According to one source, a Wealth.ng investor can make an average monthly income of 10,000 naira (about $11) from owning a share of a REIT in Nigeria, and an average annual income of 20,000 naira (about $22) from the dividends and capital gains3.
• Coreum: According to one source, a Coreum investor can make an average monthly income of 25,000 naira (about $28) from flipping a fraction of a property in Nigeria, and an average annual income of 50,000 naira (about $56) from the profit margin.
• Keble: According to one source, a Keble investor can make an average monthly income of 50,000 naira (about $56) from developing a fraction of a property in Nigeria, and an average annual income of 100,000 naira (about $111) from the return on investment.

As you can see, there is a wide range of possible incomes for different types of online real estate investment platforms in Nigeria. The actual income you can make may be higher or lower than these estimates, depending on your skills, experience, and market conditions. Therefore, I suggest that you do more research and planning before you start your own online real estate investment.

What is the minimum required to start?

The minimum required to start an online real estate investment in Nigeria depends on the type and scale of the investment, as well as the platform and plan you choose. 

The minimum amount you need to start an online real estate investment in Nigeria ranges from 10,000 naira (about $11) to 500,000 naira (about $557), depending on the platform and plan.

For example, if you want to invest in a crowdfunding platform like Risevest, you need at least 50,000 naira (about $56) to buy a unit of a property in the US. If you want to invest in a REIT platform like Wealth.ng, you need at least 10,000 naira (about $11) to buy a share of a property in Nigeria. 

If you want to invest in a land/house flipping platform like Coreum, you need at least 100,000 naira (about $111) to buy a fraction of a property in Nigeria. If you want to invest in a property development platform like Keble, you need at least 500,000 naira (about $557) to buy a fraction of a property in Nigeria. 

These are just some examples of the cost of starting an online real estate investment in Nigeria. You can also explore other options and platforms that suit your needs and budget. 

However, you should also consider the risks and returns of online real estate investment, as well as the legal and regulatory aspects of the industry.

What are the best states to start this?

The best states to start an online real estate investment in Nigeria are those that have high demand, low cost, and good potential for growth in the property market. Some of the best states for online real estate investment in Nigeria are:

• Lagos: Lagos is the commercial and financial hub of Nigeria, and it attracts millions of people and businesses every year. The property prices in Lagos are among the highest in the country, but they also offer high returns and appreciation. Lagos has many areas that are suitable for online real estate investment, such as Ibeju Lekki, Eko Atlantic City, Ikeja, and Victoria Island.
• Abuja: Abuja is the capital and administrative centre of Nigeria, and it hosts many government offices, embassies, and organisations. The property prices in Abuja are also high, but they are stable and secure. Abuja has many areas that are suitable for online real estate investment, such as Maitama, Asokoro, Wuse, and Gwarinpa.
• Rivers: Rivers is the oil and gas producing state of Nigeria, and it has a vibrant and diverse economy. The property prices in Rivers are moderate, but they have good potential for growth. Rivers has many areas that are suitable for online real estate investment, such as Port Harcourt, Eleme, Oyigbo, and Omoku.
• Ogun: Ogun is the neighbouring state of Lagos, and it benefits from the spillover effect of the Lagos population and economy. The property prices in Ogun are low, but they are rising fast. Ogun has many areas that are suitable for online real estate investment, such as Mowe-Ibafo, Abeokuta, Sagamu, and Ijebu-Ode.
• Oyo: Oyo is the historical and cultural state of Nigeria, and it has a large and growing population. The property prices in Oyo are very low, but they have great prospects for the future. Oyo has many areas that are suitable for online real estate investment, such as Ibadan, Ogbomoso, Oyo, and Saki.

These are just some examples of the best states for online real estate investment in Nigeria. You can also explore other options, such as Anambra, Enugu, Kaduna, and Kano, depending on your preferences and goals. The key to success is to do your research, plan your budget.

What are the known examples of Online Real Estate Investments?

Online real estate investments are a form of investing in properties through digital platforms, such as websites and apps. Online real estate investments can be done in different ways, such as crowdfunding, REITs, land/house flipping, or property development.

Some of the known examples of online real estate investments in Nigeria are:

• Risevest: This is a platform that allows you to invest in US real estate properties with as low as 50,000 naira (about $56). You get returns from your investment in dollars in the form of rent and the appreciation of the property value.
• Wealth.ng: This is a platform that allows you to invest in Nigerian real estate properties with as low as 10,000 naira (about $11). You can either buy a share of a REIT or a fraction of a property. You get returns from your investment in naira in the form of dividends and capital gains.
• Coreum: This is a platform that allows you to invest in Nigerian real estate properties with as low as 100,000 naira (about $111). You can buy a fraction of a property and flip it for a profit after a period of time.
• Keble: This is a platform that allows you to invest in Nigerian real estate properties with as low as 500,000 naira (about $557). You can buy a fraction of a property and earn a return on investment after the property is developed and sold.

These are just some examples of the online real estate investments in Nigeria. You can also explore other options and platforms that suit your needs and budget. However, you should also consider the risks and returns of online real estate investments, as well as the legal and regulatory aspects of the industry.

How to Search for Property Investment Prospects Online

To start, you need the right keywords to use in your search. With the right keyword, there is no limit to your exploration. I recommend you use only on verified websites such as PropertyPro.ng and Jumia Deals to avoid falling victim to scammers. Going on these websites won’t —remain vigilant. 

You can detect if a website is legitimate by:

• Checking for Google’s user reviews of high-traffic sites. To do this, type the website’s name into the search engine. Google usually gathers reviews of common sites near the top of the search result.
• Making sure that the website is secure: A secured website’s address starts with ‘https’ while an unsecured website starts with ‘http’. The difference is the ‘s’ at the end, which stands for secure.

• Looking out for a green or black padlock on the left of the website’s URL.

• Assessing the website’s URL

This step also helps in facilitating your decision on which aspect of real estate you would like to invest in.

Hire a Professional Online

While you can invest in the comfort of your phone, it is also important to be cautious. Hence, the need for a real estate lawyer or a real estate agent.

To talk to seasoned professionals, we recommend booking a time with Nigerian-based experts to help your search. A real estate lawyer is your foot soldier. They will offer the following services, among others:

• Conduct physical inspections
• Conduct research on property and documents
• Offer professional advice
• Legal representation
• Oversee investments

Your lawyer or agent should always physically verify whatever you have researched online.

How to Conduct Market Research for a Nigerian Property

Now that you have narrowed down your choices and hired a professional, the next step is to research the market with your lawyer or agent.

This is to ensure that the property is well located. I’m certain you desire good returns from your investment. So, you can’t take chances on the location of the proposed real estate investment.

If you are considering rental investment; either commercial or residential, location is important. You need to check if the location is habitable and perfect for development. Check if the location is growth friendly for your investment returns. If you want to flip the properties, you need to be more strategic and consider the rate of development in the area in tandem with how soon you want to see your investment return.

You can easily view the location with Google Earth or 3D on Google Maps, but your lawyer or agent also has to visit the location in person.

We include details of the location of most properties in our free Nigerian Real Estate Due Diligence report.

Verifying documents

Verification of the title documents to a property is a crucial and indispensable step.

Location of a property determines the type of title you will possess. Location in terms of whether it is in a freehold area or Government reserved area (GRA). For GRAs, you get a Deed of Sublease/Assignment with a governor’s consent. While you get a Certificate of Occupancy (C of O) for a freehold.

The deed of sublease/assignment grants a 99 years’ lease on the land after which the Government takes over. You can verify the authenticity of the documents at the Ministry of Lands and Housing of the state where they are situated. 

In some states like Oyo state, you might get a deed of conveyance for old properties. This is okay, as it is the equivalent of a C of O.

Other necessary documents are:

• Registered survey
• Sale agreement
• Receipts

All titles will have to be searched for at the land registry and subsequently perfected where need be; the Governor’s consent is a major prerequisite to a perfect land title in a GRA. States like Lagos state and Oyo state have websites where you can make inquiries. 

Your lawyer should confirm from the search that the property is not a subject of any lawsuit. Book a free virtual session with a Nigeria-based lawyer that can help with this.

Determining your Source of Funding 

This is a major step in determining the aspect of real estate to invest in. It could determine how soon you get returns (profit) from the investment. 

• Out of pocket: This is the safest way of funding an investment. It’s all yours, so there are no interests to pay back or conditions to fulfil. You also get to make your profits as soon as you realise capital.
• Utilising payment: Some property developers offer payment plans to buyers. You pay a certain amount upfront and spread the balance over a specific time. Developers like Cosgrove and Landwey Properties offer such plans. This is good if you can’t pay in full for the property.
• Group funding/cooperatives: This is a partnership between a group of people with a common interest. It is an easy way to pull resources together to fund big real estate projects. This could guarantee the fast completion of such projects. It also protects the members from having to fulfil certain stringent conditions that could be associated with taking a loan. 
• Joint ventures: You can enter a joint venture agreement with a property developer where you can inject funds into a project for a stake in it or for some other pre-agreed incentives.
• Mortgage: The Federal Mortgage Bank of Nigeria (FMBN) recently launched a scheme for Nigerians in the diaspora. The National Housing Fund (NHF) scheme is to enable you to buy properties easily in Nigeria with the aid of the FMBN. It is required that you should make contributions for at least 12 months to qualify. 

You can also approach other mortgage banks, like FirstTrust Mortgage Bank. Some of these mortgage banks also give out mortgage loans to Nigerians in the diaspora. Before you proceed with any bank, carry out thorough research to understand the terms and conditions of the bank.

Buying your Nigerian Property Online

Next step for you after sorting out funding is to buy. Do not pay into a personal account if you are buying from a company. Be sure to pay for the company’s bank account. Your lawyer or agent should be at the company’s office or at the property location on the date of payment to ensure the company hands over all documents.

It is safe to conduct your payment transaction in a bank if you are buying from an individual. So, it is good to have a Nigerian bank account. Your Banker and your lawyer or agent will be your witnesses. Seller should hand over all documents to your lawyer in the bank the moment they or their representative confirms receipt of your payment. 

Your lawyer should send all original documents from your property to you after the purchase. You could allow your lawyer to keep copies that are needed for title perfection.

Get Property Insurance for your Nigerian Property

Most property buyers don’t understand Nigeria’s insurance schemes. Insurance helps you guard against financial risks and unplanned hazards. The following are some benefits you get:

• Liability Coverage: This will protect you against lawsuits and other claims. You will also be covered in case of any financial losses from an accident or tragedy. It is best for commercial properties.
• Flood and damage insurance: This covers you against flooding, earthquakes, fire outbreaks and some other natural disasters.
• Art and Jewellery Insurance: In the circumstance that you have expensive possessions in your home, you get cover for a specific amount to be paid to you if they go missing from your house. This, however, requires adding a floater policy to your property insurance.
• Monetary value is being offered for any loss or damage caused by theft or an uncontrollable problem.

Insurance covers you, especially in case of disasters. Some insurance firms in Nigeria are; Leadway Assurance, Jaiz Insurance, etc. You can choose by comparing the benefits. Your lawyer can also help with picking a good insurance plan for you for you. Talk to a Nigeria-based legal expert now for a free 30-min virtual session.

Managing your Nigeria Property Business online

One tool I didn’t mention from the start is on your phone. 

It is video calling. Research shows that video conferencing fosters collaboration and trust. Use this tool to monitor your property and all ancillary transactions with the help of your lawyer or agent. You can use video conferencing apps like Zoom. Even your WhatsApp or Telegram video calls will do.

Another tool is structure. It is not a physical tool, but it is important. You and your agent or lawyer must have a system for periodic reports. You need to ensure proper documentation of all information for rental investments. Your lawyer or agent should document rental fees, renters’ information, dates, etc.

You can use Google’s workspace for this. It is free. You and your agent or lawyer will have access to the documents. And you will see any changes made.

Ask questions. Clarify any doubts you might have about the information you get. Ask until your mind is at peace.

If you wish to expand your investment, repeat the steps again.

Having gone through the steps to take before investing in Nigerian real estate, you can do well in Nigeria’s real estate scene. Follow this guide to invest safely and monitor your investment strictly. 

What else could stop you from investing? 

Let us know in the comments below.

Frequently Asked Questions

What is online real estate investment?

Online real estate investment is a form of investing in properties through digital platforms, such as websites and apps. Online real estate investment can be done in different ways, such as crowdfunding, REITs, land/house flipping, or property development1. Online real estate investment allows investors to access and benefit from the property market without having to physically own or manage the properties.

What are the benefits of online real estate investment?

Online real estate investment has many benefits, such as:

• Accessibility and convenience: You can invest in properties from anywhere and anytime, using your smartphone or computer. You don’t have to deal with the hassle of finding, buying, selling, or maintaining the properties.
• Affordability and flexibility: You can invest in properties with a low minimum amount, starting from as low as 10,000 naira (about $11). You can also choose from a variety of investment options, plans, and terms that suit your needs and budget.
• Diversification and profitability: You can invest in different types of properties, such as residential, commercial, local, or international, and diversify your portfolio and reduce your risk. You can also earn passive income and capital appreciation from your investments, which can be higher than other asset classes.

What are the risks of online real estate investment?

Online real estate investment also has some risks, such as:

• Market volatility and uncertainty: The property market can be affected by various factors, such as supply and demand, economic conditions, political stability, and natural disasters, which can cause fluctuations in the property prices and returns.
• Platform reliability and security: The online platforms that facilitate the online real estate investment can have technical issues, operational errors, or cyberattacks, which can affect the functionality, transparency, and safety of the investment transactions and data.
• Legal and regulatory compliance: The online real estate investment can be subject to different laws and regulations, depending on the location and type of the properties, which can affect the legality, validity, and taxation of the investment contracts and outcomes.

How do I start online real estate investment in Nigeria?

To start online real estate investment in Nigeria, you need to follow these steps:

• Research and learn: You need to research and learn about the basics and trends of online real estate investment, such as the concept, types, benefits, risks, and opportunities. You can use online resources, such as websites, blogs, courses, and podcasts, to educate yourself and stay updated .
• Compare and choose: You need to compare and choose an online platform and a plan that suits your needs and budget. You can use online tools, such as reviews, ratings, and calculators, to evaluate and select the best option for you .
• Register and invest: You need to register and invest in the online platform and plan that you have chosen. You need to fill an application form, pay a fee or a premium, and receive an identity card or a confirmation. You also need to monitor and manage your investment, such as checking the progress, returns, and statements.

What are the best online real estate investment platforms in Nigeria?

There are many online real estate investment platforms in Nigeria, but some of the best ones are:

• Risevest: This is a platform that allows you to invest in US real estate properties with as low as 50,000 naira (about $56). You get returns from your investment in dollars in the form of rent and the appreciation of the property value.
• Wealth.ng: This is a platform that allows you to invest in Nigerian real estate properties with as low as 10,000 naira (about $11). You can either buy a share of a REIT or a fraction of a property. You get returns from your investment in naira in the form of dividends and capital gains.
• Coreum: This is a platform that allows you to invest in Nigerian real estate properties with as low as 100,000 naira (about $111). You can buy a fraction of a property and flip it for a profit after a period of time.
• Keble: This is a platform that allows you to invest in Nigerian real estate properties with as low as 500,000 naira (about $557). You can buy a fraction of a property and earn a return on investment after the property is developed and sold.

How do I market my online real estate investment in Nigeria?

To market your online real estate investment in Nigeria, you need to use effective digital marketing strategies, such as:

• Creating a website or a landing page that showcases your online real estate investment, such as the features, benefits, testimonials, and contact details.
• Optimising your website or landing page for search engines, such as using relevant keywords, titles, descriptions, and links, to increase your visibility and traffic.
• Creating and sharing engaging content, such as blogs, videos, podcasts, and infographics, that educates and informs your target audience about your online real estate investment and its value proposition.
• Using social media platforms, such as Facebook, Twitter, Instagram, and LinkedIn, to build and interact with your online community, such as posting updates, answering questions, and collecting feedback.
• Using online advertising platforms, such as Google Ads, Facebook Ads, and Instagram Ads, to reach and attract your potential customers, such as using targeted keywords, audiences, and locations, to generate leads and conversions.

How do I learn more about online real estate investment in Nigeria?

To learn more about online real estate investment in Nigeria, you can use various online resources, such as:

• Websites: You can visit websites that provide information and insights about online real estate investment, such as Investopedia, Realtor.com, NaijaHouses.com, and Business.com .
• Blogs: You can read blogs that share tips and advice about online real estate investment, such as HubSpot, Stow, and AdHang .
• Courses: You can take courses that teach you the fundamentals and skills of online real estate investment, such as Coursera, OnlineStudies.ng, and Udemy .
• Podcasts: You can listen to podcasts that discuss the trends and opportunities of online real estate investment, such as The Real Estate Guys, The Property Podcast, and The Smart Property Investment Show.