Over the years, the cost of buying a house in Nigeria has increased significantly. This is as a result of economic downturns and development.

Three-quarter of over 60 countries that entered into the IMF’s Global House Price Index, saw increases in house costs in 2020. This trend has continued in countries with more recent data, like Nigeria.

Staying updated on house prices is important. This helps you in making informed decisions about investing or buying your own house.

In this article, you will get to know the average cost of buying a house in Nigeria.

Average Cost of Buying a House in Nigeria

The average cost of buying a house in Nigeria is ₦170,000,000. Prices depend on location, size, and features.

Lower demand makes housing more affordable in some areas. A 2-bedroom house can cost between ₦5 million and ₦30 million. Larger homes will naturally cost more.

This is depending on the availability of amenities and even the closing costs. Closing costs are various fees that home buyers pay when finalizing their purchase.

Cost of Buying a House in Different Places in Nigeria

The cost of buying a house in Nigeria varies in different ways. This is dependent on the city, location and type of property.

Lagos

Aside from being one of the places to get affordable land, Lagos has a vibrant real estate market. The average cost of buying a house in Lagos is ₦173,000,000, ranging from ₦2,600,000 to ₦1,600,000,000.

• Apartments: Cost of buying an apartment ranges from ₦200 million to ₦600 million. Size and location also affect the cost.
• Bungalows: Cost of a bungalow in Lagos varies from ₦100 million to ₦300 million.
• Houses: The cost is between ₦300 million to ₦1 billion. This will see a significant increase in high-end areas.
• Mansions: The price of mansions typically ranges from ₦700 million to an impressive ₦4 billion.

Abuja

As Nigeria’s capital, Abuja’s real estate market is more structured. The average house price is ₦206,000,000, with the highest at ₦4,500,000,000 and the lowest at ₦8,930,000.

• Apartments: Cost of apartments varies from ₦150 million to ₦500 million.
• Bungalows: Cost ranges from ₦90 million to ₦250 million. Sizes and features can either reduce or increase it.
• Houses: These are priced between ₦250 million to ₦900 million. Certain areas might demand higher costs.
• Mansions: Range from ₦550 million to ₦3.8 billion. This is subject to change as the economy changes.

Enugu

Enugu is fast becoming a real estate hotspot, offering attractive opportunities.

• Apartments: The cost buying an apartment ranges from ₦100 million and ₦250 million. This depends on the size and location of the apartment.
• Bungalows: The cost of buying a bungalow in Enugu ranges from ₦70 million to ₦150 million. Sizes, features and location can either reduce or increase it.
• Houses: The cost of buying a house in Enugu vary from ₦200 million to ₦700 million. This is subject to increase as economic conditions becomes less favourable
• Mansions: Cost of mansions typically range from ₦700 million to ₦2 billion. You get to decide your budget and what works for you.

Portharcourt

As an oil-producing city, Port Harcourt also offers diverse real estate options. The cost of buying a house in the city ranges depending on the type of house.

• Apartments: Cost ranges from ₦100 million to ₦250 million. High-end estates might be higher.
• Bungalows: This varies between ₦70 million and ₦150 million. Accessibility to basic amenities affects the prices
• Houses: Houses cost between ₦200 million to ₦700 million. It can go high or low depending on some factors.
• Mansions: Prices range from ₦700 million to ₦2 billion. This is dependent on the type and location of the mansion.

Factors Determining the Cost of Buying a House in Nigeria.

There are so many key factors that influence the cost of buying a house in Nigeria. There are certain factors to consider before buying a land or house.  It’s very important to consider each when assessing real estate opportunities across the country.

Location

The location of a house is the biggest factor affecting the cost of buying a house.

Desirable neighbourhoods like Ikoyi and Lekki are more expensive. This is because of better infrastructure and safety.

Cities with larger populations usually have more competitive real estate markets. Developed areas have higher house prices due to better infrastructure.

House size and features

The size and features of a house directly impact its price. A basic 3-bedroom bungalow costs less than a luxury duplex with a pool.

The number of bedrooms, bathrooms and the quality of finishes all contribute to the cost of buying a house. Extra features like parking, modern appliances and security all contribute to the final cost.

A house with high-end amenities will cost more than a basic house.

Economic conditions

Nigeria’s economy greatly affects the housing market. When the economy is stable, the cost of buying a house rises due to higher demand.

In tough economic times, prices may drop or stagnate. This is because demand for houses decreases. Inflation and interest rates also impact housing affordability.

Cost of buying a house is higher in areas where residents have an investment mindset.

Land availability

Cost of buying a house in areas with limited land for development tends to be high. This is due to scarcity.

Conversely, the cost of buying a house in areas with abundant land is cheaper. Cities like Lagos are facing different types of land shortages. This makes the cost of buying a house more expensive.

Government Policies

Policies and regulations can affect the real cost of buying a house. For example, zoning laws and tax policies impact construction and land costs.

Government support for affordable housing can also affect the cost of buying a house in certain areas.

Buying a House in Nigeria: Top Places to Check Out.

Here are the top 5 most expensive places to buy a house in Nigeria:

1. Lagos State

Buying a house in Lagos continues to be the most expensive. Property prices in areas like Banana Island, Victoria Island, and Ikoyi are higher than other areas. Costs can range from hundreds of millions to several billions of naira.

2. Abuja

Abuja is one of the most expensive places to buy a house in Nigeria. Cost of buying a house in neighbourhoods like Maitama, Asokoro, and Wuse often matches or exceeds those in Lagos.

3. Rivers State

Cost of buying a house in Port Harcourt has risen overtime. This is mostly seen in secure estates and waterfront houses.

4. Ogun State

The cost of buying a house in Ogun has increased. This is because of its proximity to Lagos. Places like Sagamu and Abeokuta Ogun are expensive. This is due to its rise in development.

5. Oyo State

The cost of buying a house in Ibadan has increased.  This is because of ibadan’s growing economy and development.

Oyo State has become more expensive, particularly in upscale neighborhoods.

Are housing prices in Nigeria expected to rise?

The cost of buying a house in Nigeria depends on economic conditions, demand, and development.

Over the past 5 years, the cost of buying a house has increased. Some areas may see price increases due to high demand, while others remain stable.

Following market trends and expert insights helps investors make informed decisions. This makes acquisition of property easy and affordable.

Final thoughts on the cost of buying a house in Nigeria.

When buying a house in Nigeria, consider the size and features to determine value. There are places where you can get affordable or cheap lands and property in Nigeria. Understanding the house prices in these places can help you make informed decisions.

Having the right information helps you go through the whole process with confidence. This helps you make smart investment choices without regrets.