Buying a House in Lagos
Perhaps the most significant risk faced by house buyers in Lagos today is the risk of demolition due to non-compliance with urban and regional planning laws. In recent years, the Lagos State Government has intensified enforcement efforts, leading to the demolition of houses in residential estates and developments built in violation of planning approvals or on restricted land.
Why This Risk Persists
1. Low Barrier to Entry for Developers
The real estate sector in Lagos remains largely unregulated in practice. Anyone can become a developer, regardless of professional background, and sell housing units to the public. While the state has introduced a legal requirement for developers to register with the Lagos State Real Estate Regulatory Authority (LASRERA), enforcement has been weak. This creates a market where buyers cannot easily distinguish between credible developers and those cutting regulatory corners.
2. Poor Historical Enforcement
Lagos has a long-standing culture of weak enforcement of building and planning regulations. This lax environment has emboldened many developers to ignore or circumvent planning approvals, build beyond approved limits, or develop properties on lands designated for other uses (e.g., drainage channels or right-of-way corridors).
3. Slow Regulatory Processes
The process of obtaining necessary planning and building approvals from Lagos State authorities is often slow and bureaucratic. In an effort to meet housing demand and maximize return on investment, some developers choose to proceed with construction while approvals are still pending or, in some cases, without applying at all.
The Enduring Appeal of Buying a House in Lagos
Despite these challenges, Lagos remains Nigeria’s most attractive city for homebuyers. Buying a house in Lagos is in many ways similar to buying a house in NewYork and Silicon Valley combined, in that, Lagos has relatively better infrastructure, stable power supply in select districts, access to employment, access to capital/finance, access to high-income earning residents, tech companies, fintech apps, coupled with its vibrant fashion, entertainment, and creative economy. Lagos remains the economic capital of Nigeria, and the return on investment in property investments remains very high. This strong demand continues to fuel residential construction, sometimes at the expense of regulatory compliance.
What’s Changing: Stronger Enforcement
In recent years, Lagos State has stepped up enforcement actions. Government agencies now actively monitor construction sites, issue stop-work orders, and have demolished several high-profile developments that lacked proper approvals or violated planning laws. For buyers, this new era of enforcement means greater exposure to regulatory risk if you buy a house from a non-compliant developer.
Final Comments - Proper Legal Due Diligence & Properly Drafted Contracts
The most important step in buying a home in Lagos is engaging a competent law firm to conduct legal due diligence on the house and to issue a diligence report. In a matter that we attended to, the legal counsel simply called the client to say "everything is okay" without issuing a documented diligence report. Buying a home in Lagos without professional support can be the difference between owning a secure asset and waking up to a demolition notice. Given the peculiar risks associated with buying a house in Lagos, it is prudent to ensure that the relevant contracts are drafted properly to address the relevant risk factors. What do you think?
Balogun Harold's insights are shared for general informational purposes only and do not constitute legal advice. For tailored guidance, please contact our Real Estate Lawyers at bhlegalsupport@balogunharold.com.
Olu A.
LL.B. (UNILAG), B.L. (Nigeria), LL.M. (UNILAG), LL.M. (Reading, U.K.)
Olu is a Partner in the Firm’s Transactions & Policy Practice. Admitted as a Barrister & Solicitor of the Supreme Court of Nigeria in 2009, he has spent over a decade advising clients on high-value transactions and policy matters at some of Nigeria’s leading law firms.
olu@balogunharold.com
Kunle A.
LL.B. (UNILAG), B.L. (Nigeria), LL.M. (UNILAG), Barrister & Solicitor (Manitoba)
Kunle is a Partner in the Firm’s Transactions & Policy Practice. Admitted as a Barrister & Solicitor of the Supreme Court of Nigeria in 2009, he has spent over a decade advising clients on high-value transactions and policy matters at some of Nigeria’s leading law firms.
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