From Concrete to Confidence: How Nigeria can rebuild trust in its real estate development industry

“The hardest thing to build in Nigerian real estate today is credibility.”

Nigeria’s real estate sector has the foundations of a compelling market. Demand is strong, the population continues to grow, and the appetite for quality housing, from both local and diaspora buyers, remains high. Yet one question continues to shape how buyers and investors engage with the market. Can this developer be trusted?

That concern has moved beyond location or design. Buyers want to know if a project will be delivered, at the promised quality, and within a reasonable timeframe.
The idea of rebuilding is deliberate. There was a time when a handshake from the right developer carried weight, when off-plan purchases were made on the strength of reputation, and when commitments were honoured. That trust did not disappear overnight, it weakened over time through missed timelines, inconsistent standards, and limited accountability.

Nigeria’s housing deficit is significant, but the more immediate challenge is the trust deficit. It shapes how capital flows and how buyers make decisions. Until it is addressed, even credible developers will continue to operate in an environment where confidence has to be earned repeatedly.

The Reality of Building in Today’s Market
Anyone building in this market knows the economic realities first-hand. Inflation and exchange rate volatility have had a real impact on development costs across the country. Between groundbreaking and completion, the cost of materials, especially those tied to foreign exchange, can change significantly. With the off-plan model, units are often sold at earlier prices while costs continue to rise during construction.
These are challenges developers deal with regularly, but they are not an excuse for poor delivery. If anything, they call for more discipline and better planning.

We saw this play out on one of our projects in Abuja. We started with a clear sourcing plan, but COVID disrupted supply chains almost overnight. Materials scheduled for importation became difficult to access, and at the same time, exchange rates moved sharply, pushing costs beyond what we had anticipated.

From that experience, we learned that managing foreign exchange exposure has to be intentional. Where materials need to be imported, timing matters. Moving early to lock in costs can help reduce exposure to fluctuations. Where possible, we also look at local alternatives without compromising on quality. In some cases, engaging contractors ahead of milestones helps to stabilise pricing. It is not foolproof, but it is a necessary part of managing risk.

This is simply the nature of the business. External shocks, whether economic or social, can affect a project midstream. The goal is to anticipate those risks, plan ahead, and manage them in a way that keeps the project on track.
Financing, Investment, and Long-Term Value
In Nigeria, inflation is not just a cost issue, it is also a financing issue.

The cost of capital is high, so how a project is funded matters from the outset. Off-plan sales are useful, but they should not carry the entire project. When construction depends too heavily on buyer deposits, any slowdown in sales or increase in costs can quickly affect delivery.
A more practical approach is to diversify funding. Today, there are more options available, from structured debt to equity partnerships, especially for developers who are properly set up. Combining these with off-plan sales puts the project on firmer ground and reduces overall risk.

In our own approach, we prioritise securing a significant portion of funding upfront, typically around 70 percent of total project cost. This gives the project a stronger foundation and reduces pressure during construction. It is not a perfect system, but it is necessary in the environment we operate in.

At the same time, policy direction is beginning to support a more structured market. There are now real efforts to improve affordability and encourage mortgage adoption which should, over time, create more stable demand and make the sector more accessible to institutional capital.

For buyers, the investment case for Nigerian real estate still holds when projects are delivered as promised. Over time, property in Lagos and Abuja has generally kept up with, and in many cases outpaced naira depreciation. The demand is there, the shortage of quality housing is clear, and more people are turning to real assets as a way to preserve value.

That said, this is not a short-term business. Building for the long term takes discipline and, at times, sacrifice. In the early days of my career, there were moments we had to take losses just to protect our name and maintain relationships. Real estate is ultimately a business of trust, and over time, your reputation is what carries you.

Strengthening the System
The Federal Government has taken meaningful steps to bring more structure to the sector. We are seeing ongoing efforts around land administration, housing delivery, and broader financial reforms, and these are gradually improving transparency and creating a more stable environment. The direction is encouraging, and we are beginning to see the impact.

However, from a developer’s standpoint, there is still a gap on the execution side. The barrier to entry into the industry remains relatively low, and real estate development in Nigeria does not yet require the level of professional accreditation seen in other industries and markets. There is no widely recognised framework, and limited visibility on track record or compliance.

In practice, this shows up in the quality of what comes to market. While many developers operate with discipline and a long-term view, others enter without the structure or experience the work demands. Buyers, who often cannot tell the difference at the point of purchase, end up carrying that risk.

We are also seeing how broader system issues affect confidence. Recent demolitions linked to planning compliance and right-of-way enforcement have made buyers more cautious around documentation and approvals. Increasingly, the question is not just who is building, but whether what is being built is secure.

This is why stronger and more consistent standards are important. Clearer frameworks and better enforcement would not only protect buyers, but also support those of us who are committed to doing the work properly.
Enhancing the Buyer Experience
Trust is built through the buyer’s experience, and communication plays an important role in that process.

Even where a project is progressing as planned, when there is a lack of communication, buyers begin to lose confidence. Buyers understand that challenges can arise, what they need is transparency. Regular updates, especially when timelines shift, go a long way in preserving confidence.

This responsibility does not stop with the developer. Agents and brokers are often the first point of contact, and what is communicated at that stage shapes expectations. It is our responsibility to ensure that those representing these projects are aligned with the same standards.

Social media has made this even more imperative. Projects can gain visibility quickly, but dissatisfaction can spread even quicker. We see it often now, even minor disagreements that would once have stayed private can become viral within hours. This makes consistency between what is promised and what is delivered even more important.

Buyer expectations have also evolved. There is a growing demand for better design, and it is one we have to take seriously. Buyers are more exposed to global standards and with the use of AI and other digital tools, many now come in with a much clearer picture of what they want. This means that our industry as a whole has to evolve accordingly.

Good architecture goes beyond aesthetics. Developments that rely on standard, repetitive templates, without innovation, will find it harder to earn the confidence of more discerning buyers. These days, they want a more customized experience, something authentic that reflects their interests and lifestyle.

Real estate is a long-term business. Confidence is built through consistent delivery and maintained through accountability.
Despite the challenges, there are solid reasons to be optimistic about Nigeria’s real estate sector. Economic reforms and continued urban growth are supporting demand, and the investment value is increasingly clear.

Rebuilding confidence will take effort from everyone involved. As developers, we have to take the lead by delivering on what we promise and communicating clearly along the way. Regulators need to ensure that standards are enforced. Financial institutions can expand access to structured financing, while agents must represent projects accurately.

In the end, buyers shape the market by supporting those who earn their trust and the developers who are consistent will stand out. In this business, your track record speaks louder than anything else.

Tope Adekoya is the Co-founder & CEO of 7-Fifteen Capital Ltd., a privately owned real estate development company with a growing portfolio of prime residential and mixed-use real estate properties across Abuja, Lagos and an expanding focus on select global markets.