The Illusion of “Cheap Land”

In Nigerian real estate, “cheap” is often dangled as bait — a seductive promise of ownership for less. But seasoned investors know better: land is never truly cheap — it’s just either undervalued or misunderstood.

That lesson came painfully to Chukwuma, a diaspora-based tech consultant who lost over ₦18 million to a “fast-selling” estate outside Lagos. No infrastructure. No title. No development. Just bush, hope, and a fancy brochure.

Today, he speaks publicly about the mistake, telling younger investors: “I didn’t buy cheap land. I bought land that was cheap for a reason.”

The Real Price of “Cheap” Land: A Nigerian Investor’s Cautionary Tale

In 2021, Chukwuma responded to an ad targeting Nigerians abroad — ₦600,000 per plot in a “prime” location in Ogun State, just 45 minutes from Lekki (if you trust estate marketers’ time math). The marketing was smooth, the payment seamless, and the promises glossy.

But over two years later:

• No perimeter fencing

• No community development

• No registered survey or title

• And no physical access road

Worse, when he tried to resell the land in 2024, even at cost, no buyer showed up.

What Chukwuma bought wasn’t cheap land — it was overpriced bush with no clear path to appreciation.

Undervalued Land vs. Cheap Land: Know the Difference

There’s a critical distinction between land that’s cheap and land that’s undervalued.

• Cheap land lacks critical investment indicators — accessibility, infrastructure, title, and growth potential. It’s often marketed aggressively to uninformed or emotional buyers.

• Undervalued land, however, has real potential. It’s often in early-stage corridors, near infrastructure projects, or in regions that haven’t caught investor buzz yet — but will.

Smart investors ask:

“Why is this land priced this low? What future trend justifies this risk?”

Market Insight: What Actually Drives Value in Nigerian Land?

Nigerian land doesn’t appreciate because you bought it. It appreciates because of four factors:

1. Location + Proximity to growing population centers

2. Infrastructure (roads, power, drainage)

3. Title Security (C of O, Gazette, Governor’s Consent)

4. Market Sentiment fueled by urban sprawl or government activity

When these are missing, even ₦500,000 per plot can be overpriced.

According to Win Realty data, lands around Igwuruta-Ali in Rivers State appreciated over 45% in two years — not because they were cheap, but because they were tied to active development, good title, and demand from diaspora investors.

What Sophisticated Investors Do Differently

High-net-worth and diaspora investors increasingly focus on due diligence over discounts. Some key moves include:

• Hiring independent valuers or land surveyors

• Avoiding estates without layout approval or excision

• Buying only with traceable title or in pre-approved developments

• Investing in emerging corridors, not speculative bushes

They understand that value is created, not guessed — and that appreciation is more science than luck.

Conclusion: Price Is What You Pay. Value Is What You Understand.

Chukwuma’s story isn’t rare — but it is preventable.

In real estate, the word “cheap” should trigger deeper questions, not blind excitement. Land is never cheap — it’s either fairly priced, undervalued, or a financial trap.

The real estate investor who lasts is not the one who buys fast. It’s the one who buys smart.