Buying property in Abuja is a significant investment, whether you're purchasing for personal use or as an investment. While most buyers focus on the cost of the land or house, many hidden expenses can catch you off guard and inflate your budget. Understanding these costs upfront will help you make informed decisions and avoid unnecessary financial strain.
In this guide, we’ll break down the hidden costs of buying property in Abuja so you can budget effectively.
1. Legal Fees
Before sealing the deal on your dream property, you’ll need a real estate lawyer to verify ownership, review documents, and ensure co
mpliance with Abuja's property laws. Legal fees typically range between 5% and 10% of the property’s value, depending on the complexity of the transaction.
2. Survey and Land Documentation Fees
For those buying land in Abuja, a land survey is necessary to confirm property boundaries and ownership status. The costs include:
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Survey Plan – ₦200,000 to ₦500,000 (depending on location)
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Certificate of Occupancy (C of O) – ₦500,000 to ₦1.5 million
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Governor’s Consent – ₦3 million to ₦5 million (varies based on land value)
Many buyers assume these documents come with the land, but they are additional expenses you’ll need to cover.
3. Agency Fees
If you’re working with a real estate agent or land agent in Abuja, expect to pay a commission fee. This typically ranges from 5% to 10% of the purchase price. Some agents may also charge a separate fee for property inspections and negotiations.
4. Development Levy
Some estates and new residential areas require property buyers to pay a development levy to cover road construction, drainage systems, and other infrastructure. This can range from ₦500,000 to ₦5 million, depending on the location and estate regulations.
5. Property Registration and Title Processing
After purchasing your property, you need to register the title with the Abuja Geographic Information System (AGIS). This process ensures that your ownership is legally recognized. Registration fees typically range from ₦300,000 to ₦1.5 million, depending on the property's value.
6. Capital Gains Tax (CGT) and Other Taxes
If you’re buying from a seller who is making a profit on the property, Capital Gains Tax (CGT) applies at 10% of the profit margin. Other potential taxes include:
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Stamp Duty – 1.5% to 3% of the purchase price
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Withholding Tax – Usually 5% on property transactions
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Annual Ground Rent – Paid to the government for leasehold properties
7. Utility Connection Fees
After purchasing your property, you may need to connect utilities such as electricity, water, and sewage systems. In some estates, these charges can range between ₦200,000 and ₦1 million.
8. Renovation & Furnishing Costs
Many properties require minor renovation