Is Real Estate Development Profitable in Nigeria in 2026?

By My House Cost NG · Updated 15 October 2026 · 3 min read

Yes — but it depends heavily on location. In 2026, new homes in areas like Ikoyi, Maitama, Victoria Island sell for well over the cost of building them, while in some outer areas sale prices barely cover construction once land, finance and marketing are added. Developers typically target at least 20% margin on sales.

Build cost vs sale price by area

Construction cost of a standard 4-bedroom terrace duplex per m² against what new homes sell for. A spread of 1.5× or more usually leaves room for land, fees, finance and profit.

Area	Build cost / m²	Sale price / m²	Spread	Demand
Ikoyi, Lagos	₦270,145	₦5,750,000	21.28×	Medium
Maitama, FCT Abuja	₦272,108	₦3,500,000	12.86×	High
Victoria Island, Lagos	₦270,525	₦2,880,000	10.65×	Medium
Wuse, FCT Abuja	₦264,473	₦2,300,000	8.70×	High
Asokoro, FCT Abuja	₦272,108	₦2,300,000	8.45×	High
Ikeja, Lagos	₦249,019	₦1,560,000	6.26×	High
Magodo, Lagos	₦249,019	₦1,425,000	5.72×	High
Surulere, Lagos	₦243,036	₦1,175,000	4.83×	High
Gbagada, Lagos	₦245,701	₦1,175,000	4.78×	High
Jabi, FCT Abuja	₦261,756	₦1,250,000	4.78×	Medium
Yaba, Lagos	₦246,056	₦1,075,000	4.37×	Very high
Port Harcourt GRA, Rivers	₦263,342	₦1,090,000	4.14×	High
Gwarinpa, FCT Abuja	₦254,743	₦945,000	3.71×	Very high
Trans-Amadi, Rivers	₦256,621	₦950,000	3.70×	Medium
Lekki, Lagos	₦258,503	₦940,000	3.64×	Very high
Ibadan - Akobo, Oyo	₦230,313	₦825,000	3.58×	Medium
Ibadan - Bodija, Oyo	₦231,219	₦620,000	2.68×	High
Ajah, Lagos	₦250,886	₦630,000	2.51×	Very high
Lokogoma, FCT Abuja	₦250,582	₦620,000	2.47×	High
Lugbe, FCT Abuja	₦247,261	₦545,000	2.20×	High
Rumuokoro, Rivers	₦252,091	₦545,000	2.16×	High
Ibeju-Lekki, Lagos	₦246,469	₦525,000	2.13×	High
Kubwa, FCT Abuja	₦247,261	₦490,000	1.98×	High
Mowe / Ofada, Ogun	₦234,278	₦430,000	1.84×	High
Ibafo, Ogun	₦233,933	₦420,000	1.80×	High
Abeokuta, Ogun	₦228,541	₦400,000	1.75×	Medium
Eleme, Rivers	₦250,949	₦430,000	1.71×	Medium
Ogbomoso, Oyo	₦227,030	₦325,000	1.43×	Low
Epe, Lagos	₦240,163	₦330,000	1.37×	Medium
Sango-Ota, Ogun	₦231,219	₦300,000	1.30×	Medium
Ikorodu, Lagos	₦234,882	₦270,000	1.15×	Medium
Badagry, Lagos	₦237,087	₦215,000	0.91×	Low

What makes or breaks profit

Land deal — a joint venture reduces upfront cash but shares the upside.
Speed of sales — every extra month adds interest. Off-plan sales help.
Cost control — material prices move monthly; lock in a BOQ and buy early.
Product fit — build what the area wants (terraces in Lekki–Ajah, flats in Yaba, bungalows in outer areas).

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