This is one of the most common questions we hear from investors: should I buy off-plan at a lower price and wait, or buy completed and start earning immediately?
The honest answer is that neither is universally better. Each suits a different investor profile, risk tolerance, and financial timeline. Here is a clear comparison.
Off-Plan: Buy Early, Pay Less, Wait Longer
When you buy off-plan, you are purchasing a property before or during construction typically at 15-30% below the projected completed market value. Payment is usually spread over the construction period (12-24 months), which makes the entry point more accessible.
The upside is clear: built-in equity. If you buy a unit at 28 million Naira off-plan and it is worth 38 million on completion, you have gained 10 million in equity before you even receive the keys.
The risks are equally clear. Construction can be delayed sometimes significantly. The developer could face financial difficulties. The finished product may not match the renders. And during the construction period, your money is tied up with no rental income.
Who off-plan suits: Investors who can wait 12-24 months for returns, who have done due diligence on the developer, and who are primarily seeking capital appreciation rather than immediate income.
Completed Property: Pay More, Earn Immediately
A completed property costs more upfront, but it starts generating returns from day one. You can inspect the actual building (not a render), verify documentation on an existing structure, and place tenants within weeks of purchase.
The downside is the higher entry price and the fact that most of the capital appreciation has already been captured by the original buyer or developer.
Who completed property suits: Investors who want immediate rental income, who are risk-averse and want to see exactly what they are buying, or diaspora investors who need income from their property while they are abroad.
The Numbers
Consider a practical example in Lekki Phase 2:
Off-plan purchase at 28 million Naira. Completed market value in 18 months: estimated 36-40 million. Capital gain: 8-12 million (29-43% return). But zero income during construction.
Completed purchase at 38 million Naira. Annual rental income: approximately 2.5-3 million. Net yield after management: approximately 5.5-6.5%. Plus ongoing appreciation of roughly 15-18% per year in this corridor.
Over a 3-year horizon, the total returns can be comparable but the risk profiles are very different.
Our Recommendation
If you are investing for the first time from abroad, start with completed property. You can see it, verify it, rent it, and earn from it while you learn the market. Once you are comfortable and have a trusted team on the ground, consider adding off-plan positions for capital growth.
If you are an experienced investor with capital you can afford to lock up, off-plan offers better returns per naira invested, provided you have vetted the developer thoroughly.
JESFEM facilitates both. Every completed listing is title-verified, and every off-plan deal includes developer verification, payment plan documentation, and construction milestone tracking.
