In Nigeria’s real estate market today, a quiet but powerful shift is underway. Developers, and investors are moving away from build-to-rent and embracing build-and-sell — a faster, seemingly smarter model that allows them to cash out quickly.
At first glance, it looks like a no-brainer. Why wait years to recover your investment through rent when you can sell now, make your profit upfront, and reinvest somewhere else? The math seems cleaner. The returns look faster. The risks appear smaller.
But beneath the surface, this trend is creating deeper problems than most people realize. The rush to sell instead of rent is weakening Nigeria’s rental market and worsening the housing deficit for millions of working Nigerians.
A Market Obsessed with Quick Returns
Walk through major cities like Lagos, Abuja, and Port Harcourt and you’ll see the same story everywhere: beautiful new estates spring up, sell out within months, and the developers immediately move on to the next project. Hardly anyone is thinking long-term anymore.
The result? fewer affordable rental options for the average Nigerian.
Top Affordable Areas to Buy Property in Lagos
Why Everyone Is Building to Sell
This trend didn’t happen overnight. It’s a direct response to how tough the economy has become.
Inflation is rising, the naira keeps losing value, and building materials now cost almost double what they did just a few years ago. Cement that once sold for ₦2,500 now goes for over ₦7,000. Iron rods, tiles, and finishing materials are priced almost like imported luxury goods.
For developers, that means high uncertainty. Prices can change drastically even before a project is completed. So instead of locking up their funds for years and waiting for rent to slowly pay them back, they’d rather sell immediately and secure their returns. It’s a survival strategy.
There’s the opportunity cost.
A developer who sells a duplex in Lekki for ₦150 million today can quickly reinvest that capital in another project. But if they choose to rent it out for ₦6 million a year, it could take 20+ years to recover their money, assuming rent stays consistent and the property never sits empty.
So yes, from a business perspective, build-and-sell makes sense. But what’s smart for individual developers might not be sustainable for the housing market as a whole.
The Hidden Cost of Selling Too Soon
Every time a developer sells instead of rents, one more potential home disappears from the rental market. Multiply that by thousands of similar developers across the country, and the effect becomes clear.
Nigeria’s housing deficit now estimated at over 20 million units isn’t just about a lack of buildings. It’s about a lack of accessible, affordable homes. World Bank Report on Nigeria’s Housing Deficit
When developers rush to sell, housing prices rise. The buyers who can afford these properties aren’t always end-users; many are investors who leave the homes empty while waiting for prices to appreciate.
Drive through parts of Lekki, Apo, or Guzape at night, and you’ll notice the eerie quiet rows of completed but unoccupied houses, beautiful but lifeless.
Meanwhile, ordinary Nigerians are struggling to find decent rentals within their budget. Rent prices keep climbing, pushing people further out to Epe, Mowe, Ibeju-Lekki, Dutse, or Lugbe, where infrastructure and job access are still catching up.
We’re building faster, but we’re not building smarter. The imbalance is creating two separate markets: one for those who buy to invest, and another for those who can barely afford rent. The gap between them is widening and it’s not sustainable.
When the Market Becomes Too Dependent on Buyers
There’s another danger in an overly “build-and-sell” driven market: instability.
When everyone’s profit depends on constant new buyers, the market becomes fragile. If buyer demand slows down because of tighter credit, inflation, or political uncertainty, property values can stagnate or even drop.
How to Invest in Real Estate in Nigeria for Steady Income
We’ve already seen this happen in parts of Abuja and Lekki where supply outpaced real demand. Empty estates and slow sales aren’t just bad for developers, they weaken confidence in the entire sector.
In chasing quick profits, we’re losing the steady foundation that rental income provides.
Rethinking “Smart” Real Estate Investment
It’s time to redefine what smart investing means in Nigerian real estate. Building and selling creates quick returns, but building and holding creates real wealth.
Rental income may not look glamorous, but it’s consistent, scalable, and long-term. The same property that earns ₦6 million per year today could earn ₦15 million ten years from now, while its value quietly doubles. That’s double growth income plus appreciation.
Beyond income, rental properties build equity. With stable rental income, you can secure financing for more projects, refinance existing assets, or access business loans. That’s how big real estate portfolios are built not by flipping, but by holding.
Diaspora investors understand this well. Many Nigerians abroad buy homes in Lagos, Abuja, or Port Harcourt not to sell but to earn rental income in naira while keeping their main income in foreign currency. It’s a smart hedge against currency fluctuations and a steady source of passive income.
If more local investors adopted that mindset, the entire housing ecosystem would benefit.
The Role of Policy and Financing
Of course, not every developer can hold indefinitely. Selling is sometimes necessary for cash flow or risk management. But the balance has tilted too far toward short-term gain.
Government policy can help restore equilibrium. Nigeria’s rental and property laws need reform, faster dispute resolution, better tenant databases, and incentives for long-term leasing would encourage landlords to rent instead of sell.
We also need creative financing models like rent-to-own schemes, housing cooperatives, and flexible mortgage programs that make homeownership achievable for more Nigerians.
Not everyone can pay ₦50 million at once, but many can commit to structured payments over 10–20 years if the system supports it. When renting becomes a path to ownership, everyone wins – tenants, developers, and the economy.
Building for Value, Not Just Profit
Nigeria’s housing crisis won’t be solved by simply building more houses. It requires a mindset shift from chasing quick returns to creating lasting value. Real estate has always been a symbol of wealth. It’s time it became a tool for progress, one that helps close the housing gap, not widen it.
