ilemi

For many Nigerians living abroad, investing in Lagos real estate is more than a financial decision. It is a pathway to long-term security, a future home, or an asset that reconnects them to their roots. But one question repeatedly surfaces among diaspora investors:
Should you buy an off-plan property still under construction, or a completed home ready for occupancy?

Both options are popular in Lagos, especially in fast-growing districts like Lekki, Ikoyi, Oniru, Chevron Drive, Victoria Island and Ibeju-Lekki. Each comes with its own risk profile, pricing structure, and potential rewards. Making the right choice depends on understanding these variables clearly.

This guide breaks down the pros, cons, and real-world examples to help diaspora investors decide which property type aligns with their goals.

Understanding Off-Plan Properties

An off-plan property is one that is purchased before construction is finished. Buyers commit based on architectural plans, 3D renderings, and the developer’s track record. This model has become increasingly common among Lagos developers.

Advantages of Off-Plan for Diaspora Investors

1. Lower Entry Prices
Off-plan units are typically cheaper than completed homes. Developers offer launch prices to attract early buyers, and these prices often rise as the project progresses.
For example, a two-bedroom flat in Lekki Phase 1 may launch at ₦95m during the pre-construction phase and reach ₦120m at completion. Early buyers capture that uplift.

2. Potential for High Capital Appreciation
Because you are buying early, the value grows as construction advances. This makes off-plan attractive for investors planning to resell or hold the asset for wealth growth.

3. Flexible Payment Plans
Most developers allow instalment payments spread across 12 to 36 months. This flexibility is ideal for diaspora investors who want to stagger investment without large upfront payments.

4. Modern Designs and Smart Features
Off-plan developments usually incorporate the newest design trends:
– smart home systems
– energy-efficient lighting
– improved finishing standards
– better security and estate management infrastructure

These appeal to expatriates planning to eventually relocate.

Risks of Off-Plan Investments

1. Project Delays
Delays are common in the Lagos real estate market. A development advertised for 18 months may take 24–36 months due to funding gaps, regulatory issues, or logistics setbacks.

2. Developer Reliability Issues
The track record of the developer matters greatly. Without proper due diligence, investors risk incomplete projects or compromised construction quality.

3. Variation in Final Quality
Some finished units do not perfectly match the marketing materials. Materials may be downgraded or space layouts adjusted.

4. Limited Ability to Inspect Upfront
Buying based on designs and 3D images requires trust. You cannot physically walk through the property at the time of purchase.

Understanding Completed Properties

Completed properties are fully built homes ready for viewing, valuation, and immediate occupancy. This category includes both new-build units and older resale properties.

Advantages of Completed Properties for Diaspora Investors

1. You See Exactly What You’re Buying
There are no surprises regarding layout, finishing, or structural quality. You can walk through the rooms, measure spaces, and assess the environment.

2. Immediate Occupancy or Rental Income
Completed homes can instantly generate income or serve as a ready home when returning to Nigeria.

3. Fewer Development Risks
Construction risks and delays are eliminated. You avoid uncertainties tied to project financing or developer performance.

4. Strong Resale Market
High-demand neighbourhoods like Ikoyi, Oniru, and parts of Lekki have robust resale markets. Completed properties in good condition retain value.

Risks of Completed Property Investments

1. Higher Purchase Cost
Completed properties often cost 10%–30% more than their off-plan equivalents. Developers price in the value of reduced risk and immediate usability.

2. Upfront Lump Sum Payments
Unlike off-plan instalments, completed properties typically require a significant upfront payment, making them less flexible.

3. Older Building Standards
In older resale units, layouts may be less efficient, and systems (electrical, plumbing, insulation) may need upgrading to match modern preferences.

Which Option Is Best for Different Investor Profiles?

For Wealth Growth and Long-Term Investment

Off-plan is often the stronger choice. It offers the greatest capital appreciation potential and flexible payment structures.

Best for:
– young diaspora professionals
– investors building long-term portfolios
– buyers with a 3–5 year investment horizon

For Diaspora Returnees Planning to Relocate Soon

Completed properties provide stability, certainty, and immediacy. You know exactly where you will live and what to expect.

Best for:
– families planning relocation
– older investors
– buyers who need a move-in ready Lagos home

For Investors Focused on Rental Income

Completed units win because they begin generating revenue immediately.

Best for:
– diaspora investors diversifying income streams
– investors focused on cash flow over appreciation

Lagos Neighbourhood Examples

Off-Plan Hotspots

Ibeju-Lekki
Driven by the Free Zone, refinery, and new airport development, off-plan prices are still relatively affordable with strong growth potential.

Chevron Drive / Lafiaji / Sangotedo
These areas are seeing rapid estate development with modern designs ideal for early buyers.

Eko Atlantic
High-end off-plan projects offer premium appreciation potential.

Completed Property Strongholds

Ikoyi
Demand is consistently high; completed apartments in areas like Bourdillon and Banana Island command strong rental premiums.

Lekki Phase 1
Completed duplexes and apartments offer high liquidity and stable rental demand.

Victoria Island
Corporate presence ensures steady demand for completed luxury rentals.

How to Decide as a Diaspora Investor

Before choosing between off-plan and completed properties, consider:

Your relocation timeline
Investment horizon (short-term vs long-term)
Risk tolerance
Financing structure you prefer
Neighbourhood you want to invest in
Developer reputation and past delivery track record
Property purpose: live-in, rental, or resale

Diaspora investors often benefit from a hybrid approach; buying one completed property for immediate stability and one off-plan for future appreciation.

Final Recommendation

There is no universally “better” option. The right choice depends on your goals.
Off-plan properties deliver flexibility and appreciation, while completed units deliver certainty and immediate value.

Lagos offers opportunities in both categories. With due diligence, clear objectives, and professional guidance, diaspora investors can build a successful real estate portfolio that aligns with both financial and personal aspirations.

ilemi partners with the best property developers across Lagos and wider Nigeria, to bring you the top options for your dream home in Lagos. Check out our listings to find your dream home today.