According to the Nigeria Real Estate Report for 2021, the real estate market in Nigeria seems to be promising as the sector will provide profitable returns for developers, investors and landlords. This optimistic report cuts across the residential, construction and industrial segments of the real estate sector. The report is an improvement from 2020 as it further reveals that there will be an uprising in the real estate market in major cities of Nigeria including Lagos, Abuja and Port Harcourt.
Real estate in Lagos is one of the sectors that have helped in changing the city.
The real estate market in Lagos has experienced a massive boom than any other part of the country in the past four years. The first quarter of 2021 has been good on the Lagos real estate as the purchase of lands has been on the rise. A market survey shows that Lagos has the highest property values and the most vibrant real estate market in Nigeria. This report is due to a number of reasons including being the economic hub of the nation.
Home buyers and investors have focused on Lagos properties because they are overpriced, which gives them more return of investment (ROI) in later years. Prices in the Lekki axis of Lagos have increased by over 3% over the last two years. There has also been over a 50% increase in the price of some communities like Banana Island, Shoreline Estate and Pinnock Beach Estate. On average, land in Lekki Phase 1 is 173,519/sqm, 143,333/sqm in Banana Island and 80, 174/sqm in Apapa amongst others. A 4-Bed Detached Rental in Victoria Island is about 12 million and 105 million for sale. Ogba in Mainland 4 has the lowest value in the zone with the rental price for a 3-bedroom apartment standing at 756,522 per annum.
Taking an analytical look at the residential capital values and rental values in 30 nodes within the state, Chevron has the yield of 6.87%, Agungi has 6.31% while Osapa has 6.06%. The lowest yield in Lagos is in Ogudu with 3.10%, next being Magodo Shangisha – 3.19% and third being Magodo – 3.20%. The median yield in Lagos state is 4.32% in Yaba.
Furthermore, Lagos has proven to be the dream destination to real estate investments. Investments in the Lagos real estate market have yielded a high return for investors. Investments in Ibeju Lekki have topped up to over US$200 billion which has attracted top investors like Dangote Refinery, Lekki International Airport and Golf Courses and Resorts to the area.
This solves the pertinent question; Where is the best place to buy properties for investment in Nigeria. Lagos of course is the obvious answer. The direction for Real estate luxury lovers seeking viable investment is to contact credible agents offering options to the investor. Brands such as IBIS Realty for obvious reasons come up in this aspect when looking at luxury, as well as Sujimoto; a household for luxury properties in Lagos state and Nigeria.
