Dennis Isong: Is Real Estate Co-ownership Gaining Popularity in Nigeria?

In early 2021, three friends — Tunde, Ada, and Ibrahim — decided to invest in Lagos real estate. They all had stable jobs, but none could afford to buy a property in Lekki on their own. After several late-night conversations and budget breakdowns, they discovered a simple but powerful idea: co-ownership. They pooled their funds together, bought a plot in Sangotedo, and developed short-let apartments. Today, that same property brings in a steady monthly income that none of them could have achieved alone.

Increasingly, more Nigerians, both at home and abroad, are embracing co-ownership as a smart and realistic way to enter the real estate market. But what exactly is driving this trend, and why now?

The Changing Face of Property Investment in Nigeria

For decades, the dream of owning land or a house in Nigeria has been tied to the idea of individual ownership — saving for years, buying one plot, and gradually developing it. But in recent years, that narrative has started to shift. Rising property prices, especially in cities like Lagos, Abuja, and Port Harcourt, have made sole ownership more difficult for middle-income earners.

In Lagos, for instance, land that sold for ₦10 million a few years ago in Ibeju-Lekki can now cost over ₦40 million. The same trend is visible in other fast-developing areas like Epe and Ajah. With this reality, many potential investors realised that waiting to save enough might mean being priced out of the market entirely.

Co-ownership provides a practical solution for purchasing real estate. It allows two or more individuals to jointly buy and own a property. Instead of one person shouldering the entire financial burden, each party contributes a percentage of the cost. In return, they share both ownership and the benefits of the property. This collaborative approach has transformed what was once an unattainable dream into a realistic goal for many Nigerians.

This model resonates with the way Nigerians typically function. From ajo (thrift savings) to cooperative societies and business partnerships, collective ownership has always been a fundamental aspect of our culture. Co-ownership brings this communal mindset into the real estate sector, but with proper legal frameworks, agreements, and returns.

Co-ownership is gaining popularity in Nigeria due to economic realities that shape the market. The cost of land, construction materials, and development has surged due to inflation and exchange rate instability. Cement prices keep rising. Steel, tiles, and roofing sheets fluctuate every few months.

An average young professional in Lagos, earning ₦500,000 monthly, might find it nearly impossible to buy a ₦50 million property outright. Even with consistent savings, inflation can outpace income growth. This is where co-ownership becomes a lifeline. By pooling funds with others, investors can collectively purchase property, share costs, and access opportunities that would otherwise be beyond their reach.

Also, diaspora Nigerians are catching on quickly. Many have long desired to invest in Nigeria’s property market but are often wary of scams or unreliable agents. Co-ownership through reputable firms offers a more transparent route. When the deal is verified, documented, and co-managed, it builds confidence, and the cost-sharing advantage makes it even more appealing.

This trend has opened the door for smaller investors who previously thought real estate was only for the wealthy. Even young professionals can invest in parts of premium properties, just like buying shares in a company. It’s a form of “democratised real estate,” where ownership is no longer limited to those with deep pockets.

Technology and Legal Frameworks Are Making It Easier

Another reason why real estate co-ownership is gaining popularity in Nigeria is that technology and improved legal systems have made it more practical and secure. A few years ago, managing co-ownership would have been complicated: Who handles payments, documents, and property management? Today, several real estate platforms and legal services in Nigeria have simplified these processes.

Online property investment platforms now allow multiple investors to co-own a single property and receive digital certificates that specify their ownership percentage. These platforms also provide real-time updates, track rental income, and ensure that every owner gets their fair share. This level of transparency is helping to build trust, especially among Nigerians in the diaspora who want to see where their money goes.

On the legal side, lawyers and property consultants have developed airtight co-ownership agreements that protect all parties involved. These contracts clearly state each investor’s percentage ownership, rights, and exit options. For example, if one co-owner wishes to sell their share, there are defined procedures for valuation and transfer — preventing future disputes.

Technology has also made verification more accessible. Investors can now verify property titles, ownership records, and developer credibility online before committing funds. This ease of due diligence has further boosted confidence in co-ownership arrangements.

Imagine someone living in Canada. Through digital tools, they can attend virtual meetings with their partners. This convenience and transparency make co-ownership not just affordable but also trustworthy and convenient.

Shared Risk, Shared Reward

In traditional real estate investment, one major fear is risk — what if the market crashes, the developer defaults, or the property gets mismanaged? With co-ownership, that risk is shared among multiple investors. This makes it more psychologically and financially manageable, which is another key reason why real estate co-ownership is gaining popularity in Nigeria.

When several people own a property, they each hold a portion of the risk. If maintenance costs arise, the burden doesn’t fall on one person. If there’s a delay in rental returns, it’s easier to handle collectively. This reduces pressure on individual investors and encourages participation, especially among first-timers.

The reward side is equally appealing. Instead of keeping money idle in a savings account that loses value due to inflation, investors can co-own income-generating assets like apartments, commercial shops, or short-let units. The monthly or annual rent is distributed among co-owners, creating a sustainable flow of passive income.

Moreover, co-ownership encourages diversification. Instead of putting ₦50 million into one property, an investor could split that amount into smaller shares across multiple projects — maybe a unit in Lekki, another in Epe, and a commercial space in Ibadan. That way, even if one market slows down, the others can still perform well.

This shared-risk model is not only practical but psychologically comforting. It removes the fear of “what if I lose everything?” and replaces it with “at least my portion is secure.” That peace of mind is priceless, especially for Nigerians who are cautious about long-term investments due to economic uncertainties.

The Future of Real Estate Co-ownership in Nigeria

Developers are adapting to this shift by designing projects tailored specifically for co-owners. They offer flexible investment packages, digital documentation, and managed returns. These developments are appealing to Nigerians living abroad who want to participate in the thriving property markets of Lagos and Abuja without shouldering the entire burden of ownership.

You can expect collaboration between fintech companies, real estate developers, and legal institutions in the coming years. The goal is to make property investment as seamless as buying shares in a listed company. For example, investors could one day purchase verified “property shares” via secure online platforms, backed by blockchain for transparency.

The cultural shift is also significant. Younger Nigerians now see co-ownership not as dependency but as a smart financial strategy. Just as people now crowdfund for businesses, they are beginning to pool resources to build or own properties. This collective mindset can transform the housing sector, closing the affordability gap while still maintaining profit potential.

However, successful co-ownership requires proper guidance. Investors must ensure legal documentation is complete, roles are clearly defined, and expectations are managed. Without this structure, misunderstandings can arise. This is why working with trusted realtors and legal experts is crucial.

It is no longer about who can buy alone, but who is smart enough to buy together. And that’s exactly why real estate co-ownership is gaining popularity in Nigeria.