Why Real Estate is Overpriced in Nigeria and How PetitHaus is Changing the Game.

If you’ve ever dreamt of owning property in Lagos or any major Nigerian city, you’re likely familiar with the frustration that comes with it. Prices for land and houses in cities have become astronomical. 

But why is real estate so expensive, and is there a way out of this seemingly impossible situation? At PetitHaus, we understand the struggles of everyday Nigerians who are caught in this never-ending cycle. Our mission is to make homeownership more accessible by lowering the barriers to entry, and today, we’ll explore why property prices are so high and how PetitHaus offers a path forward.

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The Pain of Overpriced Property.

1. The Honest Reality of a Challenging Economy

One major issue is the absurd price tag on properties in Lagos and other urban centers. It is now so bad that property is no longer listed in Naira, but in Dollars. Many people wonder why they’re being asked to pay $200k for a property that offers little in terms of space or amenities. Even commercial developers agree that these properties aren’t worth their asking prices, yet the costs keep climbing.

Here’s why: the cost of financing real estate projects in Nigeria is staggeringly high. Interest rates from banks range between 26-28%, meaning that if a developer borrows ₦10 million, they’re expected to pay back ₦12.80 million within a year. Compare this to countries like South Africa, where interest rates hover around 8-15%, and you start to see why Nigerian property prices are inflated.

2. The Enemy called ‘Inflation’

Inflation is the main enemy, and it drives everything beyond control. The inflation rate in Nigeria currently stands at around 34%, driving up the cost of building materials and labor. Cement prices have more than doubled, in the past one year, from ₦4,500 per bag to ₦8,500, (considering it took 2 years for the price to rise from 2,500 to 5,500) and the cost of transporting materials to construction sites has also increased exponentially due to rising fuel costs.

For many developers, the only way to cover these costs is to push them onto the buyer. That means if a house is priced at ₦100 million, you can subtract 25% for the bank's share and another 30-34% for inflation, leaving a property that, in an ideal economy, should be selling for ₦50-60 million.

3. Lack of Trust in the System

Another reason real estate feels inaccessible is the lack of trust. On one hand, a less expensive property will be misperceived as ‘fake’ or of poorer quality, hence, the need to fall into the temptation of price inflation. On the other hand, developers, especially honest and law abiding ones, often face opaque transactions, hidden costs, and unreliable partners. Whether it’s navigating complicated legal documents or dealing with dishonest intermediaries, the process can be daunting. 

4. Hidden Infrastructure Costs

When you buy property in Nigeria, you’re not just paying for the house—you’re also shouldering the cost of essential infrastructure that developers are forced to provide themselves. Roads, electricity, and water supplies are often non-existent in new developments, and it’s up to the developers to fund these projects. For example, a ₦5 million transformer might be needed just to power your home, and those costs are inevitably passed onto the buyer.

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How PetitHaus is Changing the Game

At PetitHaus, we believe that homeownership should be within reach for everyone, even in expensive urban areas like Lagos and Abuja. We understand the frustrations caused by skyrocketing prices, inflation, and the mistrust that surrounds property transactions, which is why our solution directly tackles these pain points.

1. Co-Ownership as a Path to Affordable Homeownership

PetitHaus introduces a co-ownership model that allows everyday Nigerians to come together and collectively own property. This model makes it possible for you to buy a fraction of land or a home without shouldering the entire cost alone. For example, instead of needing ₦300 million to buy a land in Lekki, you and 4 other like-minded individuals with ₦60 million each can jointly buy a Land, reduce costs of acquisition, spread title documentation and approval fees, while holding equal rights to (co-own) the title. The same principle applies in Epe or Garki or Rumuagholu.

This model reduces the high-entry cost barrier of the cost of land, making property ownership a reality for many who thought it was out of reach. It’s a way to start small but still get on the property ladder in fast-growing cities, where it often feels impossible to do so on a limited budget.

2. Transparent and Trustworthy Transactions

At PetitHaus, we understand that trust is a major issue in the real estate market. To address this, we’ve integrated technology into our processes to ensure transparency and accountability. Through our platform, every transaction is fully traceable, payments are monitored, and you can track the progress of your co-owned property in real time. This gives you peace of mind that your investment is secure, and you won’t be blindsided by hidden costs or unscrupulous dealings.

3. Solving the Inflation Dilemma

Instead of letting your savings lose value to inflation, PetitHaus allows you to put your money to work immediately by investing in tangible assets like land and property. With our model, you don’t have to wait years to save up enough to buy property outright, all while inflation erodes your capital. By starting with a fraction of land that you can afford now, you can lock in today’s prices and avoid the inflation-driven price hikes that make it harder to purchase the same land in the future.

4. Making Infrastructure Less of a Burden

With PetitHaus’s co-ownership model, infrastructure costs are shared among all co-owners. Instead of shouldering the burden alone, you and your fellow co-owners pool your resources to fund essential infrastructure like roads, power, and water. This makes it more manageable and reduces the overall cost for each individual owner.

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A New Way Forward with PetitHaus

The reality of buying property in Nigeria may seem bleak, but PetitHaus offers a new path forward. By focusing on co-ownership, transparency, and affordability, we’re giving everyday Nigerians the chance to own property without the crippling financial burden.

Whether you’re frustrated by inflation, discouraged by opaque transactions, or overwhelmed by high land prices, PetitHaus is here to make homeownership possible. You no longer need to wait for years or risk losing your savings to an unstable market. You can start small, build smartly, and become a property owner within your budget.

At PetitHaus, we believe that everyone deserves a place to call home, and we’re committed to making that a reality. Ready to make your homeownership dream come true? Join the PetitHaus community and start your journey to owning property today.