Experts Explain Why Nigerians Living Abroad Choose Dubai Over Investing in Nigeria

Real estate experts have identified a lack of trust, concerns over property ownership and currency instability as major factors discouraging Nigerians living abroad from investing in the country’s property market, with some wealthy investors increasingly considering Dubai as an alternative.

Industry leaders raised the concerns during a virtual summit on building multi-million-dollar real estate portfolios in Nigeria and the United States, held on May 16, 2026. The event examined opportunities and challenges facing Nigerians seeking to build wealth through property investments across different markets.

Managing Director of Periwinkle Condos, Tunde Olatunji, described the trust deficit as the biggest obstacle to diaspora investment in Nigerian real estate. He attributed the problem to abandoned projects, opaque business practices and concerns about whether developers would deliver properties as promised.

“Trust is the single biggest issue discouraging Nigerians living in the US and abroad from buying or investing back home in Nigeria,” Olatunji said.

Dubai, meanwhile, attracts international investors with its established property registration processes, investor-focused policies and currency stability. The United Arab Emirates dirham is pegged to the US dollar, making property investments there attractive to investors seeking to reduce exposure to exchange-rate fluctuations. Industry commentary has also highlighted the appeal of Dubai’s international business environment and property payment plans.

Currency concerns are particularly relevant to Nigerians earning dollars, pounds or other foreign currencies. Although converting foreign earnings into naira can make Nigerian property comparatively affordable, investors may worry that naira depreciation could reduce the value of their returns when converted back into foreign currency.
However, experts say Nigeria still offers opportunities, particularly in markets such as Lagos, where rental income and potential property appreciation can attract long-term investors. Olatunji said developers could rebuild confidence by financing projects before collecting money from subscribers, providing greater transparency and demonstrating progress before asking buyers to commit funds.

The comparison does not mean all Nigerians in the diaspora prefer Dubai or have abandoned investments at home. Rather, industry discussions suggest that investors weigh different priorities, including legal certainty, expected returns, currency exposure and the ease of managing property from abroad. Building confidence through transparent transactions, verifiable land titles and reliable project delivery remains central to attracting more diaspora capital into Nigeria’s real estate sector.