Is it better to rent a property or buy?

The decision between renting and buying a property is one of the most significant financial choices faced by individuals and group in Nigeria, where shelter has become a major concern. Checks by Daily Trust show that both renting and buying have their advantages and challenges, and the right choice largely depends on individual circumstances such […]

The decision between renting and buying a property is one of the most significant financial choices faced by individuals and group in Nigeria, where shelter has become a major concern.

Checks by Daily Trust show that both renting and buying have their advantages and challenges, and the right choice largely depends on individual circumstances such as financial capacity, long-term goals, and lifestyle preferences.

Daily Trust examines the advantages and disadvantages of renting against buying property in Nigeria, while taking cognizance of the economic realities of the Nigerian real estate market

Nigeria’s housing market is characterized by a significant demand-supply gap. The country’s rapid urbanization, coupled with a growing middle class, has led to an increasing demand for affordable housing. However, with high property prices in cities like Lagos, Abuja, and Port Harcourt, many Nigerians are faced with the dilemma of whether to rent or buy a home.

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Further checks have shown that properties in major Nigerian cities is expensive, with property prices in high-demand areas ranging from N200 million to over N5 billion million. Although emerging cities offer more affordable options, but property prices are still significant for the average Nigerian.

Commenting on the issue, ESV. Olufemi Adedamola Oyedele told Daily Trust that concerning whether it is better to buy or rent in houses in Nigeria, it will be cheaper to rent houses in Nigeria, and it is also better to buy for those who can afford the exorbitant price.

“Aside the capital appreciation in building after waiting for some time, the return on property development as in investment is always uncompetitive with stocks, shares, time deposit, farming especially poultry and cassava planting, and hotel investment.

“The recent rent control laws in some states which lean more to the side of the tenant than to the side of the landlords is not helping matters. The high cost construction houses versus low controlled rent will not encourage property development as the pay back period of loan on houses will not be determinable from planning stage,” he saif

Speaking further, he explained that “The property market in states where there are rent capping will be one-sided, inactive and unprofitable. A landlord, who was not assisted to build his house by government, should be able to give the property out to renters at market rate.

“This situation will encourage competition among various investment types and encourage building of more houses. Building more houses will result in your having more houses which will reduce competition among renters and the rent of houses.u in Nigeria of today,it  better to rent houses than to buy,” he added.

Also reacting, Favour Ibrahim, Managing Director, Mshels Homes Limited noted that either ways, renting and buying are good options considering the financial stamina of the individual or group.

“For instance, in Abuja’s dynamic real estate market, the choice to rent or buy depends largely on one’s financial capacity, lifestyle, and long-term plans. Renting offers flexibility, lower upfront costs, and less responsibility for maintenance, making it ideal for young professionals or those new to the city.

“Buying, on the other hand, is a strategic investment in the long term, particularly in well-planned estates with good infrastructure, as property values continue to appreciate.

“Ultimately, residents in big cities like Abuja, Lagos, Portharcourt should weigh short-term convenience against long-term wealth creation when making this decision,”

A realtor, Anthonia Ekong said people buy or rent homes for different reasons

“If you want to invest and make money as an investor It’s better for you to buy up your property put it up for rent while you are still also renting. It might sound It’s very funny But there are charges or there are maintenances that you need to do on the house when you buy a house So a house is like a car You need to screed change your paintings and you need to check on your plumbings from time to time

“But if you’re renting, you know It’s not you who has to do that. It’s the landlord so Sometimes it’s cheaper when you’re just starting to rent than to buy.  on the other hand If you want to buy because you just want to have a home or a house to cater for your family and you’re not big on, . So that case it is better for you to buy l,”

Another realtor, Basil Okafor told Daily Trust that renting a home is the most common choice for many Nigerians, especially those in major cities like Lagos, Abuja, and Port Harcourt where most of the residents are workers with high chances of being transferred to other states.

He however noted that while it seems like a convenient option, there are some critical disadvantages of renting a house that should be considered.

“Before moving into a rental property, tenants must sign an agreement of rent, which outlines lease terms, payment schedules, and responsibilities. While this contract offers some legal protection, landlords can still increase the rental fee or refuse to renew leases, leaving tenants with uncertainty,” he highlighted.

For advantages, he said unlike buying a house for the first time, renting requires little upfront payment beyond the security deposit and advance rent. It also offers renters flexibility so that they can relocate easily without the burden of selling a property.

It also offers less responsibility in the sense that tenants don’t have to worry about major repairs or property taxes.

For the disadvantages, he said “Rent payments do not contribute to ownership and landlords can increase rental fees or ask tenants to leave with short notice.

“It also comes with limited control as tenants often have restrictions on modifications and improvements,”

Providing more perspectives, he said “Owning a home in Nigeria is a significant milestone that comes with financial security, personal freedom, and long-term wealth accumulation. “Unlike renting, homeownership means investing in an appreciating asset while avoiding the instability of rising rental fees. The real estate market in Nigeria offers a variety of options, from standalone houses to luxury apartments, with different financing plans available.  “However, buyers must navigate legal procedures, ensure proper documentation, and work with reputable developers or agents to avoid fraud. While buying a house for the first time can seem overwhelming, careful planning and informed decision-making can make the process smoother and more rewarding,” he further stated.