Why More Nigerians Are Choosing Long Leases Over Outright Property Ownership
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Real estate expert Moshood Ajeniya says rising prices, rents and construction costs are pushing more middle-class Nigerians toward long-lease property ownership, which needs far less upfront capital than buying outright.
A real estate expert, Moshood Ajeniya, says rising property prices, rents and construction costs are pushing more middle-class Nigerians toward long-lease property ownership as an alternative to outright purchase. Ajeniya, managing director of TerraPath Development Limited, spoke at a press conference in Lagos.
He cited World Bank data showing Nigeria's inflation averaged 33.2% in 2024 before moderating to about 23.0% in 2025, adding that while the pace has slowed, prices have not reversed. He noted that Nigeria Property Centre's July 2026 data put the median asking rent for a two-bedroom flat in Gbagada at N4.5 million per year, up 50% from N3 million a year earlier.
Using an example from TerraPath Development Limited, Ajeniya said a property valued at N150 million for outright ownership is being offered on a long lease for approximately N50 million, with expected annual rental income of N6.5 million, creating a N100 million difference in capital required upfront. He said a N50 million long-lease property generating N6.5 million annually delivers a gross yield of 13%, compared with 4.33% on outright purchase.
He said his company began developing its long-lease proposition around 2024 and recorded 280 enquiries and 28 unit sales in Q2 2026 alone, more units than across the entire 2024-2025 period. He noted that Nairametrics, citing NBS data, reported rent inflation accelerated to 33.74% in July 2026 even as headline inflation fell to 15.43%.
Ajeniya argued that Nigeria's housing challenge cannot be solved by insisting everyone must first afford outright land ownership, calling for multiple models including long leases, rent-to-own, cooperative housing, mortgage-backed ownership and affordable housing developments.
He concluded that the Nigerian dream of property ownership is not disappearing but evolving, with the future of the market lying in more affordable and economically efficient ways for Nigerians to participate in property value.