Queen* 30, a Lagos-based based banker has been searching for a house to rent in Lagos for the past 3 months. “It has been so frustrating.” She complains. “You won’t believe the kind of places I have entered with these legs of mine, yet no positive result. But it is not even the fact that I can’t find a suitable apartment that is my major problem, it is the fact that I keep paying “inspection fees” on every single apartment I visit. At this rate, I would likely spend my actual budget for the rent on inspection fees by extortionate house agents.”
Yusuf* 33, an Ibadan-based businessman, can relate to Queen’s pain. “It’s even worse here. Infact my own problem is the prices they are putting on these properties. If you hear the outrageous prices these people quote for buildings, some of which, forgive my crassness, I cannot house even my dogs in. It makes me wonder when the government will finally decide that enough is enough, and put a stop to this entire racket. Is it until we all end up on the street?”
Queen and Yussuf’s’ problems are not unique. Everywhere you turn to in the real estate sector, what you mostly see is a web of challenges that continue to hinder full-scale adoption of technology across the value chain. While developed markets are already ahead with blockchain-based land registries, AI-driven construction, and smart cities, Nigeria’s real estate sector still struggles with fundamental bottlenecks ranging from poor digital literacy to regulatory ambiguity.
In this piece I explore the biggest obstacles slowing down tech adoption in Nigeria’s real estate ecosystem and what needs to change for the industry to truly modernize.
1. Low Digital Literacy Among Real Estate Stakeholders
One of the most persistent barriers to tech adoption in Nigeria’s real estate space is the low level of digital literacy among traditional players. Many real estate agents, surveyors, and estate developers still depend on physical signs, referrals, and c to market their properties.
For instance, a small agent in Ibadan or Port Harcourt may have heard about digital platforms like PropertyPro or Jiji, but often lacks the technical know-how or confidence to manage digital listings or handle client inquiries on the internet. This skill gap prevents many professionals from fully leveraging digital tools such as customer relationship management (CRM) systems, automated pricing tools, or virtual inspection apps.
2. Infrastructure Deficits: Power and Internet Gaps
Reliable infrastructure remains the foundation of any digital transformation. Unfortunately, Nigeria’s weak power and internet systems make it difficult for tech-driven real estate operations to thrive.
In many parts of the country, unstable broadband connectivity disrupts online property searches, digital communication, and data-driven services. Power outages also discourage the adoption of technology-dependent tools like IoT-enabled security systems or smart home devices.
While Lagos, and Abuja, have relatively better infrastructure, real estate professionals in smaller cities or rural areas often find digital tools unreliable due to frequent network disruptions. Without stable electricity and high-speed internet, innovations like virtual reality property tours or cloud-based management software remain limited to a small segment of the market.
3. Trust Deficit and Online Fraud
Nigeria’s real estate industry is plagued by a significant trust problem. Stephen Adeyemo, Founder/CEO of Reservation, a prop-tech platform tells me about how tenants and renters face numerous challenges such as high rent prices, lack of transparency in property listings or dishonest agents, leading to widespread skepticism about online platforms. Even social media, while it remains powerful for marketing, has also become a hotspot for fraud. Unsuspecting property seekers transfer money to fake landlords or agents, only to realize that the property doesn’t exist.
4. High Cost of Technology Adoption
The cost of adopting new technology is another major hurdle. Real estate companies, especially small and medium-sized ones, operate on tight budgets. Subscription fees for CRM systems, virtual tour software, or AI valuation tools can be prohibitively expensive. Training staff, upgrading IT infrastructure, and maintaining digital platforms also add to operational costs. As a result, many businesses view tech adoption as an optional expense rather than a strategic investment.
5. Fragmented Data and Poor Record-Keeping
A fundamental problem in Nigeria’s real estate industry is the lack of a centralized and transparent property data system. Land registries across states are often manual, inconsistent, and poorly maintained.
This fragmentation makes it difficult for property buyers, investors, and even government agencies to verify ownership, assess property values, or track development patterns.
6. Regulatory and Policy Gaps
The regulatory environment around digital real estate transactions in Nigeria is still unclear. There is limited legal recognition for e-signatures, digital property titles, and online mortgage contracts.
Additionally, the absence of standardized frameworks for data protection, real estate crowdfunding, and blockchain-based records discourages innovation. Startups often have to navigate overlapping state and federal laws, making it difficult to operate efficiently.
7. Cultural and Behavioral Resistance
Beyond technical and regulatory challenges, Nigeria’s real estate sector also faces cultural resistance. Many Nigerians believe that buying or renting property must involve physical inspection and direct contact with the agent or landlord. Even diaspora investors, despite access to digital tools, often send relatives to inspect properties before finalizing deals. This mindset stems from historical experiences with fraud and a general preference for in-person negotiation.
8. Limited Localized Tech Solutions
Many of the proptech tools available in Nigeria are imported and designed for more structured markets with better infrastructure. Thus they often fail to account for local realities such as informal settlements, inconsistent street naming, or limited credit data.
This lack of localization limits user adoption. For example, a property management app developed for the UK may not work well in a Lagos suburb where addresses are unstructured and tenants pay rent via cash transfers.
What Needs to Change
For Nigeria’s real estate industry to catch up with its global peers, a few key actions are necessary:
Engage and upskill the workforce. According to Dr. Kemi Onanuga, Partner at Olisa Agbakoba Legal(OAL), and Adetolamise Adewole, Associate at OAL, Real estate professionals need digital literacy and data management training. Many agents don’t even have the required experience, in estate/property management, that is why there is so much chaos in the space. Furthermore, they need media engagement and awareness.
Affordable innovation: Tech startups must build low-cost, mobile-first tools that are accessible to small agencies and developers. Adeyemo tells me “This is what we are building with Resavation. Our goal is to build an easy-to-use platform that will connect tenants with verified landlords, use AI to match users with verifiable homes, and create proper verification frameworks between landlords and renters that prevent fraud. In short, we are focused on simplifying the rental process.”
As a friend once told me, “we need a startup like Moniepoint for the real estate sector. A tech startup that will enter the ‘’trenches” and create a product that solves the peculiar problems in the sector, yet keep it simple for stakeholders.
Policy reform: Regulators should establish clear frameworks for digital property contracts, online payments, and data protection. Public-private partnerships should also focus on digitizing land registries and promoting blockchain-based ownership verification.
So far in Nigeria, Lagos appears to be the only state that has made appreciable progress especially in the area of regulation protecting tenants and creating a digital land record database, in 2024, the Lagos State government launched a portal for land acquisition. Kaduna too has made some moves that show promise, but all the other states do not seem keen on addressing the problem.
These steps will not only boost transparency but also create new investment opportunities in Nigeria’s growing real estate market.
The Nigerian real estate sector is standing at a crossroads. On one hand, there’s an exciting wave of innovation, proptech startups, smart homes, and digital financing. On the other, there are deep-rooted structural and cultural barriers slowing progress.
Overcoming these challenges will take more than just technology; it will require trust, education, policy reform, and local innovation.
If Nigeria can bridge the gap between innovation and implementation, its property market could evolve into one of Africa’s most dynamic digital ecosystems — unlocking new wealth, jobs, and smarter cities for the next generation.
*Not their real names
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