I saw a property offer recently: Location: Sangotedo, opposite Lagos Business School Land size: 1,300 sqm Stated land value: ₦350 million Plan: 24 units of 2-bedroom flats Title claimed: Governor’s Consent At first, this looks like enough information. It isn’t. Before calling this a good deal, there are important questions to answer. 1. Is ₦350 million the right price? ₦350 million divided by 1,300 sqm is about ₦269,000 per sqm.
The next question is simple: how much are similar pieces of land selling for around the same area? Without checking this, you cannot know whether ₦350 million is cheap, fair or expensive. 2. Can 24 flats actually fit on the land? The advert proposes 24 two-bedroom flats on 1,300 sqm. But buildings are not the only things that need space. You need space for parking, access, drainage, setbacks and other requirements.
So before calculating profit from 24 apartments, first confirm that 24 apartments can actually be approved and built there. 3. What will the whole project cost? The land is only one part of the investment. There will also be construction costs, professional fees, approvals, infrastructure, financing and other expenses. A project that looks profitable at first can become a bad investment when all the costs are added.
4. How much can the finished apartments sell for? If similar 2-bedroom apartments in the area sell for a certain amount, we can estimate what 24 units could produce. For example: expected selling price × number of units = possible sales revenue. Then compare that with the total cost of developing the property. That is how you begin to understand whether the project makes financial sense.
5. What about the title? The advert says Governor’s Consent. Good. But never stop at what an advert says. The documents still need to be independently checked before any serious financial commitment. The lesson When you see a property advert, don’t immediately ask: “How much is it?” Ask: Is the price reasonable? Is the title verifiable? What can legally be built there? How much will development cost?
What can the finished property produce? What could go wrong? A property becomes clearer when you understand the numbers, documents, location, possibilities and risks behind it. That is Property Clarity.
