ARTICLE
10 April 2025

Digitalisation Of Real Estate Transactions In Nigeria: A Legal Perspective

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Olisa Agbakoba Legal (OAL)

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Olisa Agbakoba Legal (OAL) is a leading world class legal solutions provider with clients in diverse sectors of the Nigerian economy. Our diversified skills ensure that we provide innovative legal solutions to our clients. At OAL, we are always devoted to our EPIC values: our excellence, professionalism, innovation & commitment.
The Nigerian real estate sector is undergoing a significant transformation driven by technological advancements. The adoption of digital tools such as virtual reality...
Nigeria Real Estate and Construction

The Nigerian real estate sector is undergoing a significant transformation driven by technological advancements. The adoption of digital tools such as virtual reality, artificial intelligence, blockchain, and big data analytics is improving efficiency, transparency, and access to a broader network of buyers, sellers, and investors. Traditionally, the sector relied on manual processes, resulting in higher costs, delays, and uncertainty. However, the digital revolution is streamlining operations, making transactions faster, more transparent, and secure, while simplifying property management and eliminating bureaucratic obstacles. Embracing digitisation is essential for the future growth of Nigeria's real estate market, with various digital trends offering both benefits and challenges.

The Digital Trends in Nigerian Real Estate and Benefits

a. Virtual Reality and Augmented Reality in Real Estate: Virtual Reality (VR) and Augmented Reality (AR) are transforming the property viewing experience, allowing buyers to explore homes and commercial spaces remotely. 3D property tours enable potential buyers to inspect properties from anywhere, eliminating travel costs and agent influence. Using a VR headset or smartphone, buyers can take immersive virtual tours, explore properties, and even view the surroundings. This technology is particularly beneficial for Nigerians living abroad, as it enables them to invest in properties in Nigeria without needing to visit in person.

b. Online market platforms: The way properties are marketed and purchased has been revolutionised, with online property marketplaces like PropertyPro, PrivateProperty, and Nigeria Property Centre making it easier to find properties globally. These platforms allow users to filter searches by location, price, and property type, offering detailed images, video tours, and virtual reality experiences. This technology reduces the need for physical visits, accelerates decision-making, and saves time and resources during property searches.

c. Blockchain and Smart Contracts: Property fraud is a significant issue in Nigeria, with multiple claims to a single property posing risks for buyers and investors. Blockchain technology addresses this by providing secure, immutable records of property ownership and transaction history, reducing fraud and title disputes. Sytemap, a Lagos-based company, uses blockchain for digital title deeds and secure transactions, fostering trust. Additionally, blockchain's smart contract feature automates ownership transfer once terms are met, eliminating intermediaries. This integration reduces fraud and enhances the transparency, security, and efficiency of real estate transactions.

d. Digital Land Registries: Property registration in Nigeria has historically been slow and bureaucratic, often taking months or years. However, states like Lagos and Abuja are advancing towards electronic land registration. Lagos, for example, is leading with initiatives such as the e-GIS portal and Aumentum Land Administration Solutions to streamline land record management and property transactions. While full digitisation is still underway, its nationwide implementation would significantly modernise Nigeria's real estate sector. According to Hernando De Soto in The Mystery of Capital, digital property data capture is key to creating fungible assets and unlocking substantial economic benefits.

e. Big data and Artificial Intelligence (AI): Big data and AI are transforming the real estate industry by analysing market trends to offer accurate property valuations and insights into consumer preferences. AI-powered tools help investors, realtors, and buyers make informed decisions using real-time data. Estate Intel, a data-driven company, uses big data to provide analytical insights into Nigerian property markets, helping investors make smarter purchasing decisions.

f. Fintech payment solutions: The integration of financial technology (fintech) in real estate is streamlining transactions and improving accessibility. Digital payment platforms like Flutterwave, Paystack, and Remita facilitate secure online payments for property purchases, rentals, and mortgages. Additionally, fintech-driven mortgage platforms are simplifying access to home loans, making homeownership more achievable for Nigerians by overcoming traditional financing challenges.

Limitations of Technology Adoption in Real Estate

Despite advancements in Nigeria's real estate sector, several challenges hinder the full adoption of digital innovations:

  1. Resistance to Change: Many stakeholders, including real estate agents and landowners, are reluctant to adopt digital solutions due to trust issues, lack of digital skills, and fear of losing control over transactions. Traditional intermediaries often see digital platforms as a threat.
  2. Regulatory Gaps: The absence of clear policies and regulations governing digital transactions creates uncertainty, particularly around blockchain-based property records, which discourages buyers and investors.
  3. High Implementation Costs: Advanced technologies like blockchain, AI, and VR require significant investment, which many small and medium-sized real estate businesses cannot afford, slowing down adoption.
  4. Fraud and Cybersecurity Risks: Increased digital transactions raise concerns about cybersecurity, with online scams and cyber threats deterring potential users due to the risk of financial loss.
  5. Digital Divide: Many real estate agents and property owners, especially in rural areas, lack the digital skills and internet access necessary to navigate digital platforms, hindering widespread adoption.

Addressing these challenges is key to unlocking the full potential of technology in Nigeria's real estate industry.

Recommendations – The Way Forward

To overcome the barriers hindering the widespread adoption of technology in real estate transactions, the following solutions are recommended:

  1. Media Engagement and Awareness: Real estate firms and industry bodies should organise digital literacy programmes to educate stakeholders on the benefits of digital solutions. Media campaigns through TV, radio, and social media can help dispel myths about digital transactions and share successful real-life examples to encourage wider adoption.
  2. Government and Regulatory Support: The government must enforce laws regulating digital real estate transactions, including those related to digital land registration and cybersecurity. Establishing a central regulatory body will ensure compliance, create transparency, and foster a secure, investor-friendly environment.
  3. Leverage Cloud-Based Solutions: Real estate companies should adopt cloud-based platforms with scalable pricing models, such as Software-as-a-Service (SaaS), which reduce upfront costs and avoid heavy infrastructure investments. This includes tools like cloud-based CRM software, virtual property viewing platforms, and AI-powered valuation systems.
  4. Strategic Partnerships with FinTech and Tech Companies: Collaborations with tech startups specialising in blockchain, AI, and VR can provide real estate firms access to digital tools at lower costs. Partnerships with fintech companies can also reduce expenses for secure online payments and mortgage processing.
  5. Cybersecurity Measures: Real estate platforms must implement Two-Factor Authentication for user logins and encrypt financial data to protect sensitive information from unauthorised access, ensuring a safe digital environment for transactions.

These steps will address the challenges and foster the adoption of technology in Nigeria's real estate sector.

Conclusion

The digitisation of real estate in Nigeria has transitioned from a futuristic concept to an ongoing reality. As previously noted, the emergence of online property listings and blockchain-based land registries is fundamentally transforming the manner in which properties are acquired, disposed of, and managed. While certain challenges remain, the adoption of digital technologies is poised to create a more transparent, efficient, and secure real estate market.

As Nigeria moves away from traditional practices and adopts a technology-driven real estate ecosystem, stakeholders who proactively embrace these innovations will be strategically positioned to succeed in the increasingly digital landscape. The legal implications of this transformation will require continued attention to ensure that digital transactions are properly regulated and protected under Nigerian law.

References

1. Springboard, The Impact of Technology on Real Estate (https://www.springbord.com/blog/impact-of-technology-on-real-estate/)

2. Virtual Reality and Real Estate: Transforming the Home Buying Experience (https://www.nigeriahousingmarket.com/real-estate-guide-nigeria/virtual-reality-and-real-estate)

3. Olajide Ajire Prince, The Effect of Technology in Real Estate  (https://www.researchgate.net/publication/384734706_The_Effect_of_Technology_on_Real_Estate)

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5. Sytemap – Simplifying African Land Ownership with Technology (https://sytemap.com/)

6. Lagos Launches Automated Application Portal for Land Acquisition (https://www.channelstv.com/2024/01/27/lagos-launches-automated-application-portal-for-land-acquisition/#:~:text=Governor%20Babajide%20Sanwo%2DOlu%2C%20on,land%20title%20documents%20in%20Lagos.)

7. Ibrahim Baruwa, Digital Transformation Trends in Nigeria's Real Estate Market:Innovations and Active Project

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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