Not all cities in Nigeria have a growing and vibrant real estate market where investors make profits at a marginal level like Lagos and Abuja.
Lagos state continues to have a healthy and thriving real estate market.
The prices of properties (land, residential, and commercial, etc) soar every year. The present average rental price of a decent apartment or flat in a middle-class neighborhood is anywhere between ₦ 2 million and ₦ 3 million.
The burgeoning population and infrastructure in Lagos have earned the state the megacity title. Today, Lagos is a home to more than 20 million people which marks an impressive rate of population growth compared to the population of over one million people in 1970.
Advantage to real estate investors
As more and more people migrate from different parts of the country to Lagos every year either for settlement, business or pleasure; real estate investors are laughing all the way to the bank.
The high influx of people moving into the megacity means there will be a high demand for houses, lands, apartments for residents to stay.
Real Estate Investment In Lagos
Real estate investment in Lagos is thriving because investors capitalize on the population growth and the fact that there are reduced restrictions in terms of government policies on pricing and property values. Thus, real estate investors are making more and more profits investing in real estate.
Prices of properties in Lagos appreciate in value on a daily basis, especially in some popular locations occupied by wealthy Nigerians and other nationals. These locations are said to be more developed than other parts of Lagos.
Investing in Lagos real estate is a surefire way of making guaranteed profits (steady flow of income over time) with little to no stress assuming you have the money to invest.
Like I earlier made mention, there are reduced restrictions in place that regulate property prices in Lagos. Thus, Landlords can increase rents and slam whatever price tag they wish on their properties at any point in time. And guess what? Nigerians will pay without batting an eye.
Like every other investment, there is always some form of risk involved. Yes, investing in real estate in Lagos is viable and reliable, however, that doesn’t mean it’s completely risk-free. The most common risk associated with Lagos real estate are:
- Economic conditions may change
- Damage to property
- The risk of vacancy
- Bad tenants
- Property depreciation
Honestly, You can completely avoid these risks if you are smart. Consult with a real estate surveyor and valuer if you are looking to invest in Lagos real estate.
Looking at the present landscape of the real estate market in Lagos. You can almost say without a doubt that investing in Lagos real estate is certainly a cash cow.