Buying off plan in Lagos: risks worth taking

Buying off plan means paying for something that does not exist yet, usually in instalments tied to construction milestones. The discount against a completed unit is real, often 20 to 30 per cent. So is the risk.

What actually goes wrong

Projects stall. Developers run out of money, the naira moves against imported materials, or approvals take longer than planned. When a project stalls, buyers have paid substantial sums and hold no asset. Recovery through the courts is slow and frequently unsuccessful.

How to reduce the risk

Look at what the developer has already finished. Not what they have started, what they have handed over. Visit a completed project and speak to residents about build quality and how far past the promised date delivery ran.

Check the title on the land itself before you pay anything. A developer selling units on land without perfected title is selling you their problem.

Insist that payments track construction milestones rather than the calendar. A schedule that takes your money on fixed dates regardless of progress removes the developer's incentive to build.

Read the agreement on delay. A serious contract says what happens if delivery is late, including compensation or a refund route. Vague language here is a warning.

When it makes sense

Off plan works for buyers who have time, tolerance for delay, and a developer with a genuine delivery record. It is a poor choice for anyone who needs to move on a fixed date or who cannot afford to have capital tied up indefinitely.