KEY POINTS
- Land ownership holds deep cultural significance in Nigeria.​
- Purchasing land offers economic flexibility and potential for higher returns.​
- Investing in land involves lower initial costs and maintenance expenses.
In Nigeria, many individuals are increasingly choosing to purchase land rather than buying pre-built houses.
This preference is influenced by various factors, including cultural values, economic considerations, and investment potential. Let’s delve into the reasons behind this trend.​
Cultural significance of land ownership
The Nigerian culture attaches significant value to holding ownership of land.
The traditional belief views owning land as a way to show wealth, establish status and create a legacy. Owning land in Nigeria provides people with a sense of connection to their history while creating a path for passing property to future family members.
Nigerian cultural beliefs favor land possession more strongly than buying a finished house since a pre-built home may lack ancestral heritage value.
Economic advantages and flexibility
Buying land becomes a better investment option than acquiring a finished house because it offers economic advantages and construction freedom. A higher return on investment represents a major opportunity that land purchasing provides.
Land in Nigeria tends to appreciate over time, especially in rapidly developing areas. The purchase of land at lower prices allows investors to sell it for higher gains when neighborhood development occurs.
Moreover, the ability to select building design and structure type when owning land gives owners the advantage of tailoring their property to individual needs and preferences.
Lower initial costs and maintenance expenses
The cost of acquiring land for investment is usually lower than what it takes to buy a completed house.
The entry point into the real estate market through land acquisition functions as an easier investment path for people who want real estate ownership with minimum debt.
Furthermore, real estate owners find minimal expenses in managing undeveloped land because there are fewer maintenance requirements. Owning land creates fewer maintenance demands than managing houses, as houses often need costly repairs and regular upkeep.
Mitigating risks associated with property ownership
Buying land can also help mitigate certain risks associated with property ownership in Nigeria.
For instance, landowners can avoid issues related to construction defects or substandard building materials that might be present in some pre-built houses.
Starting construction from new builds gives individuals complete authority to monitor project development, which enhances construction quality and prevents potential structural issues.​
Opportunities for land banking
Among Nigerian investors, many choose land banking, which means purchasing land solely for investment purposes even though development is not imminent.
The strategy enables investors to maintain possession of land areas so they can benefit from the increased value brought by urban growth and new infrastructure projects.
The real estate market attracts investors through land banking because it needs minimal monitoring and provides significant financial returns.
Conclusion
The preference for buying land over houses among Nigerians is influenced by a combination of cultural values, economic benefits, flexibility, and investment potential.
The process of land ownership matches Nigerian traditions while providing practical benefits such as minimum upfront costs, minimal upkeep requirements and lucrative profit potential.
Buying land will remain popular among Nigerians who wish to protect their finances and traditional cultural practices despite the development of urban areas.
