A new housing study is set to examine the real cost of living in Lagos by looking beyond rent to include transport, housing fees, infrastructure and access to investment opportunities.

GTI Investment Group will present the findings of its Beyond Rent research at the Lagos Housing and Capital Forum on August 20, 2026. The study examines how housing, transport, regulation and investment interact across the Lagos property market.

The research is aimed at renters, investors, developers and policymakers. It seeks to provide a broader view of the forces shaping housing costs and investment decisions in Nigeria’s commercial capital.

The True Cost of Renting

For many Lagos residents, the cost of housing does not end with monthly or annual rent.

According to the research, households may also face agency charges, caution fees and advance payments before moving into a property. Transport costs can add another major expense, especially for residents who live far from their workplaces.

GTI Research’s Effective Rent Burden Matrix brings housing and transport costs together to measure the wider cost of living in different parts of Lagos.

The approach could change how renters compare locations. A property with lower rent may not always be the cheaper option if residents spend significantly more on daily transport.

This is particularly relevant in a city where access to jobs, transport infrastructure and housing is closely connected. The research therefore places location at the centre of the housing affordability debate.

Infrastructure and Property Investment

The report also examines the changing ways Nigerians can invest in real estate.

According to the study, investors now have several options beyond buying a complete property or plot of land. These include different forms of fractional ownership and other investment structures.

GTI Research also links property investment to infrastructure development. It examines rail catchment yields, real estate investment trust performance and construction equity returns.

The research argues that investors should consider where infrastructure is expected to develop, rather than focusing only on areas where infrastructure has already arrived.

This could help investors assess emerging property corridors and compare current prices with future development potential.

Policy and Tenant Protection

The report also reviews the policy environment affecting Lagos renters and property owners.

It assesses the Lagos State Tenancy Law of 2011 and argues that some of its penalties became less effective because they were not updated over the years. It also examines the treatment of certain rental practices in high-rent areas.

The study considers the 2025 Tenancy and Recovery of Premises Bill as an improvement in areas such as coverage, fee limits and tenant protections.

However, it stresses that stronger laws must also have effective systems for enforcement. Without proper enforcement, legal protections may have limited impact on renters and landlords.

Closing Lagos’ Housing Finance Gap

Housing finance is another major area covered by the research.

GTI Research proposes four financing instruments that it says could mobilise as much as ₦3.85 trillion annually toward addressing Lagos’ housing capital gap.

The proposal reflects a wider challenge in the housing sector. Building more homes requires not only land and construction capacity but also access to long-term capital.

For developers, financial institutions and government, the availability of housing finance can influence the number of homes that can be delivered and the people who can afford them.

Housing as a Capital System

The central argument of the Beyond Rent research is that Lagos housing should not be viewed only as a question of supply.

Instead, the study presents housing as a system in which income, transport, infrastructure, regulation and financial markets affect where people live and how property value is created.

That approach brings renters, investors, developers and regulators into the same conversation. It also highlights the need for housing policy to consider both the cost of homes and the wider economic conditions surrounding them.

GTI Investment Group will present the full research findings at the Beyond Rent: A Lagos Housing and Capital Forum on August 20, 2026. The forum will bring together policymakers, investors, developers, financial institutions, academics and other industry stakeholders.

The wider significance of the research lies in its attempt to connect housing costs with transport, infrastructure, regulation and capital. For Lagos, where housing affordability remains closely tied to location and income, a broader understanding of these links could support better decisions by households, investors and policymakers.

The post Lagos Housing Costs Go Beyond Rent as GTI Unveils New Research appeared first on Housing TV Africa.

The high cost of property in Lagos is pushing more residents to explore alternative ways of gaining exposure to the real estate market without buying or owning a traditional plot of land.

With median house prices in Lagos estimated at about ₦378.5 million and commercial mortgage rates ranging from 25 to 30 per cent, outright property ownership remains difficult for many workers. The affordability challenge has encouraged the growth of new investment models that allow residents to participate in the property market with smaller amounts of capital.

These options range from fractional ownership and real estate crowdfunding to Real Estate Investment Trusts (REITs), housing cooperatives and rent-to-own schemes.

Fractional Property Ownership

Fractional ownership allows several investors to jointly own an interest in a property. Investors contribute smaller amounts and receive returns based on their share of the asset.

Some platforms now offer entry points from about ₦100,000. Investors may earn rental income and benefit from capital appreciation when the investment exits, depending on the structure and performance of the property.

Some fractional investment opportunities linked to prime areas such as Lekki and Ikoyi advertise annual returns of between 15 and 25 per cent. However, investors must assess the risks and verify the claims of each platform before committing funds.

Real Estate Crowdfunding and Developer Finance

Another option is real estate crowdfunding. Under this model, several investors pool money to support property development projects.

Some platforms also provide financing directly to developers. Investors may receive fixed returns based on agreed terms and the performance of the underlying project.

These models can appeal to people who want exposure to property without taking on a mortgage or buying a complete house.

Short-Let Co-Hosting

Lagos’ short-let industry has also created opportunities for people who do not own property.

Co-hosts manage short-let apartments for landlords and handle tasks such as guest communication, cleaning and bookings. In return, operators may receive a share of rental revenue.

Some co-hosting arrangements pay operators between 20 and 25 per cent of gross rental revenue, according to estimates cited in the source material.

Lease Arbitrage

Lease arbitrage offers another route into the short-let business. An operator rents a property under a long-term agreement and then operates it as a short-let, subject to the landlord’s permission and applicable rules.

The model can generate profits in high-demand locations such as Lekki Phase 1 and Ikeja GRA. However, it also carries significant risks, including vacancy, operating expenses and lease restrictions.

Listed Real Estate Investment Trusts

Lagos residents can also gain exposure to property through Real Estate Investment Trusts (REITs) listed on the Nigerian Exchange.

REITs allow investors to participate in income-generating real estate without directly purchasing a building or plot. They can also provide a more accessible entry point and, in the case of listed instruments, greater liquidity than physical property.

Housing Cooperatives

Housing cooperatives offer another established route. Members contribute funds over time, allowing the cooperative to acquire land or support construction at scale.

Pooling resources can improve bargaining power and may lower some costs associated with land acquisition and development.

Developer Instalment Plans

Some property developers allow buyers to spread payments over several months or years. Instalment plans can reduce the pressure of making a single large payment.

Depending on the developer and project, payment periods may range from 12 to 48 months. Buyers should review the contract carefully and confirm title documents, project approvals and delivery terms before making payments.

Land Banking

Land banking involves acquiring property in areas expected to experience future growth. Investors typically target locations where infrastructure expansion and urban development could increase land values over time.

This strategy requires patience. Peripheral areas may take years to develop, and investors face risks linked to infrastructure delays, title issues and changing planning policies.

National Housing Fund and Rent-to-Own Options

For prospective homeowners who cannot raise a large deposit, housing finance programmes may provide another pathway.

The Federal Mortgage Bank of Nigeria administers National Housing Fund products designed to improve access to housing finance. Rent-to-own arrangements can also help some eligible buyers move towards ownership through structured payments rather than a large upfront purchase.

The source material cites interest rates as low as 6 per cent per annum for some relevant products, with repayment periods of 10 to 20 years. Eligibility and terms depend on the specific programme.

The Changing Face of Property Investment

The growing range of options shows how real estate participation is changing in Lagos. Property ownership is no longer the only way for individuals to gain exposure to the sector.

Technology has made it easier for investors to access fractional property platforms, digital investment products and alternative financing models. However, each option carries a different level of risk, return potential and liquidity.

Investors should therefore carry out proper due diligence before committing money. They should verify the ownership structure, regulatory status, fees, exit terms and credibility of the operator.

For Lagos residents facing high property prices, these alternatives may provide more accessible routes into real estate. The broader shift could also reshape how younger Nigerians view property not only as a home to own, but as an asset class that can be accessed through different investment strategies.

The post 10 Ways Lagos Residents Can Invest in Real Estate Without Owning Land appeared first on Housing TV Africa.

Nigeria’s new Tax Act will take effect come January 2026, ushering in one of the most significant overhauls of the nation’s fiscal framework in decades. Designed to align with global standards, the law is expected to reshape the real estate and housing finance landscape but experts warn its success hinges on effective implementation, transparency, and consistent engagement.

A New Era for Real Estate and Property Investment

The Nigeria Tax Act 2025 introduces tougher anti-evasion measures, including a “top-up tax” on multinational corporations, stricter Controlled Foreign Company (CFC) rules, and more comprehensive definitions of taxable capital gains. Though primarily targeting foreign entities, these provisions will reverberate through Nigeria’s property sector, where many large projects rely on offshore financing through Special Purpose Vehicles (SPVs).

Developers could face higher taxes and tighter reporting requirements under the Federal Inland Revenue Service (FIRS), while property disposals will now attract Capital Gains Tax (CGT) on actual profits closing long-standing loopholes that allowed tax avoidance through share transfers instead of asset sales.

Stamp Duties and Luxury Property Tax

One major flashpoint is the adjustment of stamp duties on property leases above ₦10 million, which experts say could further inflate housing costs in cities like Lagos and Abuja. Similarly, a proposed 1.5% annual luxury property tax on high-end homes in areas such as Ikoyi and Maitama aims to increase revenue from wealthy homeowners but may distort the upper property market.

Impact on Developers and Mortgage Institutions

Developers and lenders are bracing for higher compliance costs and thinner margins. While the reforms may initially raise borrowing costs, experts believe long-term gains are possible if revenues are reinvested into housing infrastructure and mortgage credit.

The Real Estate Investment Trust (REIT) segment could also see changes. Though currently enjoying tax exemptions under FIRS rules, inconsistent interpretation of the new provisions could unsettle investors, highlighting the need for regulatory clarity.

Opportunities Amid Uncertainty

According to Ayo Ibaru, CEO of Northcourt, exempting residential properties from VAT and expanding recoverable input VAT to cover construction services could ease cost pressures. He urged the government to complement reforms with tax incentives for green and affordable housing.

Dr. Roland Igbinoba, President of Proptech Nigeria, described the law as transformative but warned of short-term pain. “CGT has moved from 10% to 30%. Developers must plan carefully, but over time, the law will bring greater transparency and predictability,” he said.

Estate valuer Olufemi Oyedele called for targeted reliefs to protect affordability. “Authorities should tax empty houses and channel proceeds into mortgage support for low- and middle-income buyers,” he advised.

Balancing Reform and Reality

Experts agree that implementation will make or break the reform. Without transparent processes, data-driven valuation systems, and active engagement between government and stakeholders, the benefits could be lost to confusion and overregulation.

The new tax regime marks a critical juncture for Nigeria’s real estate industry, one that could either unlock sustainable financing for affordable housing or deepen existing market imbalances, depending on how policymakers strike the balance.

By: CHINEDUM UWAEGBULAM

Source: Guardian

The post How Nigeria’s New Tax Law Will Transform Real Estate Financing appeared first on Housing TV Africa.

This marks a staggering growth rate of 52,004.85 percent, as their real estate portfolio skyrocketed from just N5.13 billion in 2020 to a remarkable N273.06 billion by the end of 2024. The figures, compiled by the Pension Fund Operators Association of Nigeria (PenOp), highlight a dramatic shift in investment strategies by PFAs.

Despite this unprecedented growth in direct real estate investments, the same period saw a sharp decline in Real Estate Investment Trusts (REITs), with investments plummeting by N219.22 billion. In 2020, investments in REITs stood at N239.28 billion but dropped drastically to N20.06 billion in 2024. Analysts attribute this decline to a shortage of REIT products in the capital market, pushing pension funds toward alternative investment channels, particularly private equity deals.

1. According to PenOp, PFAs have historically participated in the real estate market through two main avenues: direct investments and Real Estate Investment Trusts. While active pension funds are prohibited from directly investing in real estate due to regulatory constraints, they utilize REITs as a way to channel their investments. REITs serve as regulated vehicles where investors pool resources to collectively invest in real estate assets, offering a structured and relatively secure method of participation in the property market.

However, the drop in REIT investments is a direct result of the limited availability of suitable products in the market. As a result, active pension funds are now exploring real estate investments through Private Equity Funds. These funds provide flexibility and opportunities for PFAs to indirectly finance real estate projects while navigating around the dearth of REIT options.

Closed Pension Funds (CPFAs), unlike their active counterparts, are not bound by the same investment restrictions and have invested nearly N300 billion directly in real estate by the close of 2024. This trend underscores the significance of real estate as a strategic asset class for Nigerian pension funds.

Industry experts emphasize the dual role of real estate investments in pension fund portfolios—they not only act as a hedge against long-term inflation but also provide developers with access to a reliable source of long-term capital. The evolving investment landscape highlights the adaptability of PFAs in navigating market limitations and leveraging opportunities to enhance returns for their contributors.

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