Question: Can a foreigner own a real estate property in Lagos, Nigeria. The simple answer to the question is Yes. A foreigner can own a real estate property in Lagos, Nigeria.
However, the rights of a foreigner to own a real estate property in Lagos comes with some limitations. The first limitation is that property ownership in Nigeria no longer exists because the Land Use Act of 1978 abolishes absolute ownership of land or real estate property in Nigeria. The abolishing of absolute ownership applies to both the citizens and foreigners looking to own real estate property in Nigeria.
Absolute ownership was replaced with a lease structure which is 99 years for citizens and 25 years for foreigners. It means that all rights called ownership rights are actually long leases executed by the governor of the state where the real estate property is located in favour of the citizen or foreigner. The long lease agreement is a document signed by the Governor often referred to as a certificate of occupancy (C of O). So if someone in Nigeria says I own this property, what they are actually saying is that I have a long lease agreement with the government over this property. Simply said, property ownership right is a long lease agreement with the government which can also be resold however with the consent of the Governor.
Because certificate of occupancy is only issued once on a property in Lagos State all subsequent purchases become assignment of the entire residue of the original lease or subleases with a reversionary right. All subsequent purchases must be approved by the Lagos State Governor. This is done when the Governor signs on the sublease or assignment agreement.
How Can a Foreigner Own a Real Estate Property in Lagos
Although the government has absolute ownership over the real estate properties in his state, buying and selling of real estate properties does not happen directly with the government. The buying and selling exchange is usually with a citizen who owns the property or historic family owner in the case of family or communal land. So if a foreigner is looking to own a real estate property in Lagos, they would not go to the Governor to say, “I want to buy a property”. Rather they would find a property they would like to buy and transact with the legal owner of the property. What is required is that after the purchase transaction is concluded with the seller, the foreigner is required to seek the Governor’s consent or approval. Without the approval of the Government, the documentation remains incomplete and can encounter issues in the future.
In other words, a foreigner can own property in Lagos just the same way a citizen can own a property.
Also a foreigner looking to own real estate property in Lagos is often advised to own it through a registered company as the Nigerian law on foreign investment treats companies registered in Nigeria as Nigerian citizens and gives them the same rights over property ownership regardless of the composition of the company. Hence, a company registered in Nigeria can have access to the 99 year lease regardless of whether the company is 100% owned by a foreigner(s) or a mixture of foreign and Nigerian owenrs.
Similarly, buying a property from an existing owner who has a certificate of occupancy does not bring any limitation to foreign ownership as the Governor does not write a new lease agreement for the foreigner but allows the foreigner to own the residue of the original lease.
Types of Properties A Foreigner Can Own In Lagos
A foreigner can own any type of real estate property in Lagos available to the citizens. There is no specific restriction that target foreigners.
However, the same restriction that applies to citizens also applies to foreigners. For instance it is prohibited to transact on restricted or government owned properties which are referred to as committed properties. These properties have been marked by the government for public use purpose such as to build hospitals, police stations, schools, roads, etc.
Also any land described as under government acquisition is if purchased would require a lengthy application process to own and the application of ownership is subject to the Governor’s approval. There is a general restriction on ownership of mineral resources found on land or properties. Hence no citizen or individual can lay claim to the resources as even though it directly relates to the property ownership.
A foreigner can buy or own any of the following property types:
- Land: A foreigner can buy any type of residential, commercial, mixed-use or industrial property in Lagos. Land owned by a foreigner can be used for any approved purpose including to develop residential property either for individual or family accomodation or for sale for profit. The land can also be used to set up a business.
- Apartments or Condos: As a foreigner you can buy an apartment in any part of Lagos either for yourself or as an investment property. Most foreigners who are looking to relocate to Nigeria either for business or to family can choose this option. Great places to buy apartments for personal use or investment purpose are Lekki, Ikoyi, Victoria Island and Ikeja. These places are top choices because of their proximity to top restaurants, schools, the airport and other commercial hubs. Properties in these locations also offer lucrative ROI and appreciate in value as well.
- Houses: A foreigner can buy any house type in Lagos. Common house types are detached duplexes, townhouses or terraced duplexes, semi-detached duplexes.
Steps To Owning A Real Estate Property In Lagos As A Foreigner
The steps to owning a property in Nigeria as a foreigner are as follows:
- Find a property: As a foreigner, you need to work with a real estate agent that is familiar with the local real estate market. Vala Homes Ltd, is a Lagos State licensed real estate agency with a good knowledge of the Lagos property market. If you are looking to acquire a property in top locations in Lagos, then this agency can help you find the right property and guide you through the buying process. Finding the property includes going through a list of recommended properties and choosing the one that best aligns with your budget. It also involves conducting a property tour which can be done either virtually or physically.
- Conduct due diligence on the property: conducting due diligence is a way to investigate the property information to be sure it is a safe property to buy. For this you will need to hire a local real estate lawyer to verify all property documents including title documents, construction approval documents etc. You may also need to hire a surveyor to check the coordinates and the information relating to the land especially if you are buying a bare land.
- Close the transaction: Once you are satisfied with the property and the due diligence comes back clean, then the next step would be to close the transaction by making payment and signing all title documents prepared or vetted by your lawyer.
- Apply for the Governor’s Consent or Certificate of Occupancy: A real estate transaction in Lagos state is not complete unless you have applied for the C of O in cases of property without a prior C of O or a Governor’s consent in cases of property with a prior C of O.
Best Locations For A Foreigner To Own A Real Estate Property in Lagos
The top locations for a foreigner to own a real estate property in Lagos are as follows:
- Ikoyi: Ikoyi is a top residential area. It is also a highbrow area with great investment returns. It offers the most expensive residential properties and luxury living. It also offers single unit self serviced properties as well as multi-family units, high rise, low rise and mid-rise buildings that offers hotel style living. Top neigbourhoods in Ikoyi are Banana Island estate, Bourdillion, Ilubirin Estate, New Ikoyi, Glover Road.
- Eko Atlantic City: This is a man made island in Victoria Island, Lagos and a very audacious project housing the most luxurious and highly rated high rise buildings. The property types in Eko Atlantic city are serviced apartments in high rise buildings. Land is also available for investors looking to invest in property development. Eko Atlantic is a mix of residential and commercial properties and there are major offices located here including the USA embassy etc. As a free trade zone, Eko Atlantic offers a lot of business incentives for foreign investors and businesses.
- Victoria Island: This location is a mix of commercial and residential properties. However it is fast becoming more of a commercial city than a residential city. Victoria Island has a lot of business head quarters, ranging from oil companies, commercial banks. Many multi-nationals and foreign owned businesses have their offices in Victoria Island. However for residential property, areas like Oniru Estate will be more preferred.
- Lekki Phase 1: Lekki phase 1 is also a mixed use development and features commercial properties. It also features a lot of residential properties for residents and one can easily find affordable apartments and houses.
- Ikate, Lekki: Ikate is more of residential area featuring top estates such as cowrie creek estate, hampton bay estate etc. If you are looking to buy an apartment or a detached house in a serene and secure estate for family living then Ikate should be on your list.
- Osapa: Similar to Ikate, Osapa also has well planned and secured estate for family or individual living. Poplular house types in these neighborhoods are detached and semi-detached houses. Most of the houses have spacious rooms, private cinema, swimming pool etc. Also the estates offer communal living and environments suitable for children to grow.
- Ibeju-Lekki: This area is ideal for foreigners who are looking to set up a business in Nigeria or simply just want to invest in land banking. Ibeju-lekki is a growing hub for industries and other commercial activities. It is an area that is ready for futuristic and long term investment. The axis already has the presence of the Lagos Free Trade Zone, Dangote Refinery, the Lekki Deep Sea Port etc. All types of properties are available for purchase in this area including industrial, commercial and residential properties.
- Epe: Epe is also on the list of top investment ready areas in Lagos state. A foreigner can invest in properties in Alaro city, or the Lekki Airport area. Investment properties available in this area are mostly commercial and residential land. Both Epe and Ibeju-Lekki offers opportunities to own very affordable land unlike the other parts of Lagos mentioned above.
Frequently Asked Questions (FAQs) – How Can a Foreigner Own a Property in Lagos
1. Can foreigners legally own property in Lagos, Nigeria?
Yes. Foreigners can legally own property in Lagos, provided they comply with local laws, including obtaining the Governor’s Consent as required under the Land Use Act.
2. Do foreigners need Nigerian citizenship to buy property?
No. You do not need Nigerian citizenship. However, you must follow due process, use a valid purchase agreement, and register the property with the Lagos State Government.
3. Are there restrictions on the type of property a foreigner can buy?
Foreigners can buy residential, commercial, and investment properties. However, certain government-acquired or committed lands have restrictions.
4. What documents are required for a foreigner to buy property in Lagos?
Key documents include:
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Sales Agreement / Deed of Assignment
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Governor’s Consent
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Certificate of Occupancy (C of O) or other title documents
5. Is Governor’s Consent mandatory for foreigners?
Yes. Governor’s Consent is a legal requirement for all land transactions in Lagos, whether the buyer is Nigerian or foreign.
6. Can a foreigner buy land directly in Lagos?
Yes, but only if the land has proper title documents and is not under government acquisition. Using a registered surveyor and real estate lawyer to verify the status and ownership of the land is strongly advised.
7. Can a foreign company own property in Lagos?
Yes. A foreign company registered in Nigeria can own property. The property must be acquired in the company’s name and properly registered.
8. How long does it take for a foreigner to complete a property purchase in Lagos?
Typically, 4–12 weeks, for the purchase process. The Governor’s Consent processing currently takes about 3 months.
9. What taxes or fees should a foreign buyer expect?
Some costs include:
- Agency Fees
- Legal/Documentation Fees
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Stamp duties
- Survey Fees
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Registration fees
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Consent fees
10. Is it safe for foreigners to invest in Lagos real estate?
Yes—if proper due diligence is done. Always verify the title, use a reputable real estate agent and lawyer.
11. Can Vala Homes assist a foreigner to own or invest in a real estate property in Lagos?
Yes. Vala Homes is a Lagos State licensed real estate agency company helping Nigerians and foreigners to buy and own properties in Lagos. Vala Homes cover top locations in Lagos including Ikoyi, Victoria Island, Lekki, Ajah, Epe, Ikeja and Ibeju-Lekki.