Real estate investment can be challenging even when you’re on ground. If you’re now doing it as a Nigerian in the diaspora, it can be much more challenging. How do you handle property inspections from thousands of miles away? What are the peculiar challenges you are likely to face as a Nigerian in the diaspora with an interest in the Abuja real estate investment?
How do you know whom to trust with your money? What happens if a deal falls through? These are just a few of the many questions that haunt Nigerians abroad who dream of owning a piece of land or property in Nigeria’s capital city, Abuja.
And the concerns are valid. While Abuja continues to be a hot real estate destination, the road to owning property there isn’t always smooth, especially when you’re abroad.
If you have these concerns, let’s help you. In this article, we will discuss seven real-life challenges diaspora Nigerians often face when trying to invest in real estate in Abuja.
7 Challenges of Real Estate Investment in Abuja for Nigerians in the Diaspora
What challenges do Nigerians in the diaspora experience when investing in real estate in Abuja? Let’s find out.
1. Trust Issues and the Risk of Fraud
Let’s be honest, trust is a big issue. The risk of dealing with a fraudulent agent or developer is one of the biggest challenges that Nigerians in the diaspora face in their real estate investment journey in Abuja. Most diaspora investors rely on family members, friends, or middlemen to help them buy property or oversee construction.
Unfortunately, this often ends in disappointment. You’ve probably heard real stories of someone sending millions of naira home, only to find out years later that no land was bought or that the supposed building is still at foundation level.
Common real estate scams in Abuja include:
- Double sales (selling one property to multiple buyers)
- Selling land under government acquisition
- Fake real estate agents or developers disappearing with funds
Even when the intentions are good, some helpers simply don’t have the experience or knowledge to deal with agents or legal procedures. Without a professional or a verified representative on the ground, you’re basically investing blindfolded.
To avoid this issue, hire a licensed real estate company in Abuja. You can also hire a trusted lawyer to act on your behalf during transactions.
Insist on video proof, documents, and independent verification at each step. Always verify land titles with the Abuja Geographic Information Systems (AGIS). Also, avoid using relatives as your only point of contact; family and money rarely mix well in real estate.
Also Read:
- What You Should Know About Federal Capital Development Authority (FCDA) Abuja
- 7 Factors That Can Make Your Property Appreciate in Abuja
- 10 Frequently Asked Questions By First-Time Property Buyers in Abuja
2. Poor Communication and Project Supervision
When you’re miles away, communication is everything, but it’s not always reliable. Time zone differences and dishonest intermediaries can make it hard to get regular updates about your investment.
If you’re building from scratch or buying off-plan (i.e., before the property is completed), remote supervision becomes a huge challenge.
Imagine you’re building a house in Abuja and you’ve sent millions of naira home. You ask for pictures or updates, and you’re either ignored or sent old photos. The stress is real. This does not allow you to know the real extent of work they are doing on your project.
Without someone to monitor the site regularly, you won’t notice when foundation work isn’t deep enough or when cheap roofing materials are used. Some contractors also submit fake progress pictures so you think work is ongoing, but the site is dry.
Many diaspora real estate investors can agree that one of their biggest frustrations comes from a lack of consistent updates on their property or construction projects. A similar complaint is that developers cut corners and use substandard materials, or even abandon projects halfway.
To combat this, work with developers that offer digital project tracking or hire a local project manager who sends weekly photo/video updates. Better still, get family or friends in Abuja to randomly inspect the site.
3. Documentation and Legal Bottlenecks
Real estate in Abuja is heavily regulated, and for good reason. But handling that paperwork from abroad can feel like solving a jigsaw puzzle in the dark.
From getting the Right of Occupancy (R of O) to the Certificate of Occupancy (C of O), you’ll encounter many bureaucratic layers and delays.
Moreover, obtaining approvals for building plans, land use changes, or title conversions can take months. And without regular follow-up (something difficult to do from abroad), your file might just sit on someone’s desk collecting dust.
Thankfully, there are ways to avoid this. This includes always insisting on verified documents, C of O, Deed of Assignment, Survey Plan, and approved building plans. Then, use legal professionals who specialize in Abuja property laws.
4. High Cost of Property and Currency Fluctuation
Abuja is expensive. It is arguably Nigeria’s most expensive city for real estate. For Nigerians earning in naira, this is already a challenge. For those abroad, currency conversion can either be your best friend or worst enemy, depending on timing.
As of 2024, the average price for a 4-bedroom duplex in areas like Gwarinpa or Lokogoma is about ₦100 million to ₦180 million, and plots of land in decent areas can go for ₦20 million to ₦80 million, depending on location and title.
However, currency fluctuations can affect your purchasing power significantly. Imagine planning your investment when the naira is at ₦750/$1, only to watch it spike to ₦1,400/$1 in a matter of months. That’s a huge loss in value.
To deal with this challenge, use domiciliary accounts and registered remittance platforms/Fintech apps like Wise or Flutterwave that give you better control over exchange rates and traceable transfers. Also, work with sellers or companies that accept structured payments in milestones, rather than bulk payments.
5. Dealing with Middlemen and Hidden Charges
One of the trickiest challenges diaspora investors face is dealing with endless middlemen. From agents to “omo-onile” (land grabbers), you’ll likely hear everyone claim to “know someone who can help you get land cheap.”
But with too many cooks, the broth spoils and so does your budget. Hidden fees like “development levy” or agent commissions can spring up at the last minute.
In some cases, you might be told the land costs ₦15 million, only to realize you need an additional ₦5 million for various charges you weren’t informed about earlier.
To deal with this challenge before it even comes up, demand a breakdown of all costs upfront. Don’t work with unverified third parties. And make sure you sign formal agreements stating the total cost, expected delivery timeline, and refund policy (if any).
6. Difficulty Accessing Reliable Professionals
Finding reliable lawyers, surveyors, architects, or contractors in Abuja can be challenging from overseas. How do you vet someone you’ve never met? Reviews online are few and far between, and personal referrals can sometimes go south.
The problem with using friends or relatives as project managers is that it’s so easy to take an emotional decision if something goes wrong. You also risk delays due to divided priorities or a lack of expertise.
Many Nigerians abroad have horror stories of sending money to someone they trusted, only to find out the money wasn’t used for the intended project or the workmanship was subpar.
Plus, some real estate agents or sellers assume that diaspora buyers are wealthy and desperate so they inflate prices, sometimes up to 20-30% more than what they offer locals.
Then there’s the risk of outrightly falling for fake lawyers and dubious agents, the type that will offer you less-than-prime land at premium prices or even disappear with your money.
If you can, we recommend you work with verified lawyers and developers with a strong track record. Check if they are registered with the Corporate Affairs Commission (CAC), the Nigerian Institution of Estate Surveyors and Valuers (NIESV), or the Real Estate Developers Association of Nigeria (REDAN).
7. Fear of Government Demolitions or Unforeseen Land Disputes
Even after buying and building, you’re not always in the clear. Abuja is notorious for sudden government demolitions, especially in areas considered “unapproved” or not compliant with the Abuja Master Plan. If your property is in such a zone, you could lose everything, even with a receipt in hand.
Also, some lands, especially those in Abuja’s satellite towns like Kubwa, Lugbe, or Gwagwalada, are prone to communal or family disputes. You may unknowingly buy land already sold to someone else or worse, land that belongs to the government.
These problems usually happen because the property wasn’t properly registered or verified at the land registry.
For this reason, insist on buying land with a Certificate of Occupancy (C of O) or registered title. Avoid “family lands” unless you have a strong legal team. And always consult the Development Control Department before building.
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Final Thoughts: The Risks Are Real, But So Are the Rewards
Despite the many challenges, real estate in Abuja remains a solid investment for Nigerians abroad. The city’s population is projected to reach 5 million by 2030, and housing demand will only continue to grow.
This means there’s long-term potential for rental income and property appreciation. But you have to be smart about it. Real estate is not a “spray and pray” investment, especially from thousands of kilometers away.
You need to take time to do your research and vet everyone involved. If possible, visit Nigeria occasionally to inspect progress or work with a reliable property management company that has a track record of working with diaspora clients.
If you’re thinking about investing in real estate in Abuja as a Nigerian in the diaspora, don’t go it alone. Look out for professionals or firms like our company. At Hush Homes, we understand all your real estate investment challenges in Abuja and we are willing to offer trustworthy solutions for people just like you.
Would you like to invest in our Abuja real estate offers like Kyami Pavilion Estate and Royal City Estate or Westlands Residence in Asaba? Please, call +2348132794689 or send a WhatsApp message to +2348132794689.
