Investors Unveil Strategy to Redefine Luxury Real Estate Market in Lagos

Bennett Oghifo

Stakeholders in Nigeria’s high-end real estate segment have unveiled a new private investor-driven initiative aimed at redefining luxury property development and investment standards, with a strong emphasis on governance, discretion, and global best practices.

Speaking at a Private Investors Forum in Lagos, a Partner at Globalis and President of the Africa and Near East Region of the International Real Estate Federation, Adeniji Adele, said the initiative was designed to change the narrative of Nigeria’s real estate sector, particularly within the luxury segment.

According to him, the forum targets high-net-worth individuals seeking secure, discreet, and professionally managed real estate investments comparable to global standards.

“We are looking at luxury real estate from a different perspective—through the eyes of investors who demand discretion, structure, and adherence to global best practices,” Adele said.

He explained that the initiative draws inspiration from advanced real estate markets such as the United States, the Middle East, and parts of Europe, where luxury developments are guided by strict governance systems and institutional frameworks.

Citing cities such as Los Angeles and Dubai, Adele noted that high-end residential developments in those jurisdictions are governed by enforceable rules that protect investors and ensure long-term value.

“In those markets, you cannot cut corners. Homeowners’ associations have the power to enforce compliance, and defaulters face serious consequences, including forfeiture of property,” he added.

He stressed that the Nigerian market must evolve beyond informal practices to embrace structured systems that prioritise investor protection and asset security.

Adele disclosed that the initiative, driven by a consortium of experienced professionals brought together by Frank Oti, is already advising on several flagship luxury projects, including “11 by SV,” “14 Bourdillon,” and a forthcoming branded residence linked to the global hospitality giant Ritz-Carlton.

He noted that such developments require more than conventional facility management, emphasising the need for strategic advisory services tailored to high-end investors.

“It is about understanding what it takes to deliver value to elite investors—ensuring returns, security, and sustainability of their investments,” he said.

On pricing, Adele explained that the developments are positioned within the prevailing luxury market range, estimated between $3,500 and $4,000 per square metre, with early investors able to secure lower entry prices through off-plan purchases.

He added that despite global inflationary pressures and rising construction costs driven by geopolitical factors, investment appetite in Nigeria’s property sector remains strong.

“There is money in this country. You can see the level of development ongoing. The key is identifying the right segment and delivering quality,” he said.

Also speaking, Chairman of Globalis, Frank Oti, said the initiative was conceived to fill a critical gap in Nigeria’s luxury real estate market—providing structured advisory and governance systems for investors.

Oti recalled that attempts to attract international luxury brands into Nigeria years ago were unsuccessful due to concerns about market readiness, prompting him to assemble a team of like-minded professionals to develop indigenous solutions.

“We discovered that there is a niche that is not properly represented. Even where it exists, investors are not given the information required to make informed decisions,” he said.

He clarified that the group’s role is not to sell real estate but to provide strategy and advisory services that enhance project design, governance, and long-term viability.

Central to the initiative is the introduction of homeowners’ associations governed by clearly defined conditions, covenants, and restrictions—an approach widely adopted in developed markets but largely absent in Nigeria.

“We are bringing sanity into what is largely a chaotic system. Investors should not just buy property; they should enjoy it. That is what is called ‘quiet enjoyment,’” Oti stated.

He explained that under the proposed model, buyers in developments such as “11 by SV” would be required to commit to governance rules before acquiring units, ensuring compliance and collective responsibility among residents.

According to him, the model also includes transition strategies that transfer control from developers to homeowners once a majority of units are sold, in line with practices in jurisdictions such as California.

“In organised markets, once a developer sells 51 per cent of units, the homeowners’ association takes over. The developer becomes just another member. That is what we are introducing here,” he said.

Oti further disclosed that the group had already delivered a comprehensive governance and documentation framework for the “11 by SV” project, including operational guidelines and legal structures required for sustainable community management.

He added that the initiative also promotes integrated living concepts, with developments incorporating convenience services such as retail outlets, workspaces, and lifestyle amenities to enhance resident experience.

“This is about creating organised communities where people can live, work, and enjoy their investments without friction,” he said.