As the economic squeeze tightens and inflation bites harder, property developers are responding with varying plot sizes to meet the financial capability of buyers. While some stakeholders deem it innovative, others frown at the haphazard measure that mirrors poor compliance with the National Physical Planning Standards, CHINEDUM UWAEGBULAM reports.

Faced with soaring construction costs, dwindling household incomes, and tighter lending conditions, private developers are increasingly turning to smaller land plots to sustain sales, a strategic adjustment aimed at survival and keeping Nigeria’s housing market afloat.

Across major cities, there’s a growing shift towards smaller residential plot sizes, a strategy aimed at attracting cost-conscious buyers and reviving sluggish real estate sales. From once standard 600sqm plots, new developments are offering 450sqm, 300sqm, or even 200sqm parcels, reflecting changing market realities and the quest for affordability.

Once considered too small for single-family homes, these reduced plot sizes are gaining popularity, especially among first-time homeowners, young professionals, and returnee Nigerians who are struggling with inflation, currency instability, and limited mortgage access.

Traditionally, a 600sqm plot was the minimum standard in most urban residential layouts, offering enough space for a duplex, backyard, and boys’ quarters. But that ideal is fast fading as developers now promote 300sqm or 450sqm as “affordable alternatives” in gated estates, and some layouts feature plots as small as 200sqm.

These compact parcels cater to a shifting demographic, such as middle-income buyers priced out of the traditional market, people seeking investment properties, and working-class families who want to avoid long-term rent commitments.

Currently, a smaller plot such as 200sqm can contain a compact two-bedroom bungalow or starter duplex with reduced setbacks; 300–350sqm, a modest three-bedroom duplex with small front and backyards, while 400–450sqm, can accommodate a four-bedroom duplex with optional boys’ quarters

Developers are leveraging smart architectural layouts, shared infrastructure, and flexible building plans to make the most of the reduced space. In many estates, designs are pre-approved to ensure compliance and faster development timelines.

The Guardian learnt that urban planning regulations in states like Lagos, Ogun, and the FCT, Abuja, still maintain minimum plot size requirements depending on zoning density. For instance, Lagos requires 648sqm for low-density detached homes but allows 300–450sqm in high-density or medium-density zones with proper layout approvals. In the FCT, 300sqm plots are legal only within approved mass housing or cooperative schemes. States like Ogun and Oyo are seeing a rise in informal subdivisions where smaller plots are carved out without updated layout approvals, raising compliance concerns.

Globally, smaller plots are already the norm: For instance, in the UK, most new residential plots range between 200–300sqm, in India, urban housing often sits on 100–150sqm plots, and in South Africa, permits 250–400sqm in many medium-income housing schemes.

Nigeria’s population is growing rapidly, and urban land is finite. Experts believe that, with proper regulation, downsizing plots is a step toward smarter, denser cities, especially in the face of a housing deficit estimated at over 18 million units.

As the real estate market adjusts to Nigeria’s economic realities, developers are betting on smaller plots to keep construction viable and housing somewhat affordable. While the move reflects genuine market demand, the long-term success will depend on how well the trend aligns with urban planning laws, infrastructure development, and buyers’ needs.

The Managing Director of Property Vaults Limited, Mr Andy Morkah, disclosed that a significant portion of the 21.6 hectares that make up one of its estates – SEC Court Estate, consists of plot sizes below 450 square metres. “The shift towards smaller plots is driven by increasing demand for affordable housing options and the need to maximise land use efficiency in response to urban growth and market preferences.”

“We have structured our pricing across product types to target different demographics, as most terrace apartments have footprints of 70sqm -100sqm per unit, and individuals can buy and build their houses at their convenience, sharing walls as borders between two houses. A layout design of 250sqm with a rectangular orientation can accommodate a unit of a terrace with the right setbacks in front and behind the house accordingly.”

Morkah called on physical planning agencies to revisit and possibly redesign the layout of undeveloped new towns by creating zones for affordable plots that will be eco-friendly with adequate infrastructure provision to accommodate residential density.

“The short-term gain of this practice is that developers can provide houses for the masses while maximising land within an enclave, but in the long run, such environments usually have slow growth in terms of capital appreciation. Residents will always abandon such a community for a better environment as they grow in wealth. Communities with spacious plots and infrastructure will always command a good ecosystem and attract affluence, which invariably will drive capital appreciation.”

For now, smaller plots are more than a survival strategy; they are fast becoming the new normal in Nigeria’s residential property market as some town planners maintain that such small sizes are a misnomer in planning regulations.

“They were ignorantly introduced in the FCT during the relocation programme for illegal occupants in some of the villages within the FCT, who were displaced. Unfortunately, some of the developers have now taken it as the norm. No town planner would design a layout with such standards,” according to the immediate past president, Nigerian Institute of Town Planners (NITP), Nathaniel Atebije.

He told The Guardian that plots of 200 to 300 Sqm are below acceptable standards in any residential layout design.

“Subdividing plots without approval is a serious offence and disobedience to the law because every approved layout is gazetted as a legal instrument for effective management of the affected space, adding that the consequence of such disobedience is demolition of the property at the expense of the illegal developer.”

Atebije said that designs are made for between six to eight families on a plot of about 750 sqm, which provides enough space to cater for their needs, rather than a small plot of 200 to 300 sqm.

“The craze for plots rather than dwelling units is a misnomer in our development process. High-density dwelling units are to provide many dwelling units on a relatively small plot of land. Hence, they must be multi-tenanted to meet the desired requirements.”

OgbonnaHe stated that the only way to enforce is to ensure that any design below standard is rejected, and if, by impunity violations occur, appropriate sanctions must be meted out to the defaulter.

The Chairman of the Northern Town Planners’ Forum, Barnabas Atiyaye, told The Guardian that the trend is due to a lack of National Physical Planning Standards.

“Most states tend to come up with standards that might meet the requirements of their people. However, in most cases, these situations are due to the failure of the government to supervise or enforce some outright violations of master plans and other physical development plans.”

He said most states still use old planning standards, such as 450 sqm minimum, especially for high-density areas. “We have observed in most of the Northern States that what was regarded as GRAs have been subdivided into smaller plots. It is possible that a few states allow smaller plots (200–300 sqm) mainly in high-density layouts, urban renewal areas, or for affordable housing schemes. Smaller plots may be accepted if it is part of a formally approved layout or are supported with planning justification.”

Atiyaye, who is the principal partner of Envicons Team Consultants, explained that subdividing without approved layouts suggests that they cannot have a legal title, such as a Certificate of Occupancy, or a building permit will be denied. “It is obvious that such developments, unchecked, will lead to increased urban disorder, which implies uncontrolled subdivisions leading to slums and poor-quality living environments.”

He advocated approved physical planning standards by both the Federal Government and various states so that layouts are not left to the dictates of developers or land holders who tend to subdivide their lands anyhow without any due consideration for other services.

“It is not out of place to have well-serviced smaller lands, introducing density-based zoning, and allowing more housing units per hectare. This will ensure full utilisation of the land. This implies that each state or region that has similar cultural practices may review their planning regulations to permit smaller lot sizes in selected areas,” Atiyaye added.

NITP past national secretary, Olugbenga Ashiru, said Lagos State’s Planning Permit Regulations (2019) do not specify a minimum residential plot size, but treat such plots as sub standard plots (plots under 150 m² or under 225 m², depending on scheme and width) differently in terms of setbacks and airspace allowances.

“Although Lagos’s regulations pre date the latest housing pressures, there are signs of incremental adaptation as the statutory framework permits sub standard plots under explicit reduced setback standards that provide legal flexibility for higher density development, especially in core areas.”

Ashiru noted that planners continue to engage through layout approval and permit process by allowing higher permissible densities (up to 89 units/hectare for high density) and medium/high density categories based on plot area formulas.

He said stakeholders are pushing for updated laws to explicitly integrate small lot housing into urban planning policy.