The Role of Valuation in Lagos Real Estate Transactions

Lagos is Nigeria’s commercial capital and one of the most dynamic property markets in Africa. With rapid urbanization, a growing middle class, and ever-increasing demand for housing, real estate transactions in Lagos occur daily—ranging from land sales to residential and commercial leases. But at the heart of these transactions lies one critical process: property valuation.

In this article, we examine the role of valuation in Lagos real estate, and why it’s a non-negotiable part of any serious property deal.

1. Establishing the Right Market Price

In a competitive market like Lagos, sellers often have price expectations that may not reflect true market conditions. Professional valuation helps determine a realistic price, using recent sales of comparable properties, location, property condition, and market trends.

This protects:

Buyers from overpaying

Sellers from underpricing

Agents from losing credibility due to inflated figures

2. Facilitating Bank Loans and Mortgages

Most real estate buyers in Lagos who seek financing from banks or mortgage institutions must provide a valuation report. This document, usually prepared by a registered estate valuer, helps the financial institution:

Determine the loan-to-value ratio

Ensure the property is suitable collateral

Minimize the risk of loan default or asset repossession

Without this step, banks will not approve the loan, no matter the property’s appearance or location.

3. Supporting Legal and Documentation Processes

A certified valuation report is often required during:

Title registration or Governor’s Consent

Property disputes and court cases

Tax assessment and estate settlements

In Lagos, especially with rising land disputes and overlapping claims, a valuation report adds credibility and transparency, especially when multiple parties are involved in a transaction.

4. Decision-Making for Buyers and Investors

For buyers and investors, valuation is more than just pricing—it’s about assessing true investment value. A property may look attractive but have hidden issues that affect its value, such as:

Poor road access

Risk of flooding

Title or documentation problems

Valuation exposes these risks early, helping investors make smarter decisions that align with their financial goals.

5. Enhancing Negotiation Power

Both buyers and sellers can use a valuation report to support their negotiation stance. For example:

A seller can justify their asking price with a detailed report

A buyer can request a price reduction based on the valuer’s findings

In Lagos, where emotions and perceptions often drive prices, valuation offers a fact-based foundation for negotiation.

6. Government and Tax Purposes

Lagos State Government and its agencies rely on property valuations for:

Land Use Charge assessments

Property tax computations

Compensation for government acquisitions

A proper valuation ensures property owners are fairly taxed or compensated, rather than relying on arbitrary figures.

7. Identifying Development Potential

Valuers assess not just the current worth of a property, but also its future potential. In Lagos, where land is limited and prices are constantly rising, knowing how a property’s value may change based on:

Nearby infrastructure projects

Rezoning

Market trends

…can be crucial to strategic investment.

Conclusion

In a fast-paced market like Lagos, where demand is high and land is scarce, property valuation serves as a foundation for transparency, trust, and informed decision-making. Whether you’re buying, selling, investing, financing, or litigating, a certified valuation helps ensure you’re not walking into a bad deal.

To protect your interests, always engage the services of a registered estate surveyor and valuer before completing any property transaction in Lagos.