When looking for the cheapest place to buy land in Nigeria with a good return on investment, either now, in a few years, or in the near future, there are some tangible factors to consider. Factors like resale potential, community and neighborhood, future developments, market trends and appreciation potential, utilities and infrastructure, location, legal consideration, zoning and land use regulations, and landmarks
You want to make sure you have most of these in check to be sure if the land is worth investing in. In this article, I’ll show you the cheapest place to buy land in Nigeria with a 100% yearly ROI.
Potential of real estate market in Nigeria
Over the years, there has been huge growth in the real estate sector of Nigeria. As of 2016, the real estate sector in Nigeria was estimated to be worth approximately 1.2 trillion US dollars. As of the time of writing this article, it is worth approximately 2.1 trillion dollars. It is expected to increase by up to 3 trillion dollars in the next few years.
Understanding ROI in real estate
ROI is a unit used to measure the performance of an investment. In real estate, it is used to determine the profit made off a real estate property. ROI is also known as the return on investment. It is calculated by dividing the net profit from the investment by the cost of the investment, then multiplying it by 100.
ROI = (Net profit from investment/Cost of investment) x 100%Net profit from investment: Net profit from investment is the total revenue made from a rental property or an increase in the value of a property minus all expenses. For instance, if you have a rental property, you’ll add all the money made on that property minus the expenses incurred in maintaining the property.
Net Profit from Investment=(Rental Income+Operating Income+Appreciation+Tax Benefits)−(Operating Expenses+One-Time Expenses)If you’re dealing with lands, then you just have to calculate the increase in value of the land minus the expenses paid for developments, taxes, and maintaining the landed property.
Cost of investment: This includes the purchase price, renovation and maintenance of the property. In simple words, the amount you used to buy the property plus the cost of renovation and maintenance.
Benefits of investing in lands
The value of land will continue to appreciate as long as humans remain on earth. The increase in population has a significant impact on the demand for land, which is limited. The higher the demand, the more the value of land appreciates, and the scarcer it becomes.
Another benefit of investing in land is the long-term appreciation factor. Land can give you 100%–100% in just a few years to a decade, which is not too much if you’re considering building generational wealth. The more population increases, the more there is demand for more land to cater for their accommodations, build infrastructure, build businesses to provide jobs, and also build manufacturing companies to meet their needs. The expansion of humans is necessary with an increase in population.
Also, land ownership generally requires low maintenance costs compared to residential buildings either used for rent, hotels, or Airbnb. Since there are no buildings to maintain, the occasional cost can just be budgeted for the upkeep of the land.
Factors influencing land prices
When acquiring land for investment purposes, there are factors to consider before putting down the cash. Land acquired for the purpose of investment needs to be able to give you a good return on investment in a few years.
Factors to consider include location. rural and urbanization, proximity to significant infrastructure, close land marks, development plans, government projects, basic infrastructural developments, market trends, historical data on land price in that area, and emerging trends.
The cheapest place to buy land in Nigeria with a guarantee of 50%–100% ROI annually
Over the years, there have been major movements from the north and east to the west and southwestern parts of Nigeria. Some of the most populated states in Nigeria are in the western part of the country. In fact, two of the most populous cities in Nigeria are Lagos and Ibadan, both located in the west.
If you want to invest in land, you definitely want it to flow in the direction of migration and population growth. Now that we know the west is the best place to invest in land, where can you get cheap land that can yield up to 100% ROI in just a year?
Lagos is the most populated state in Nigeria. With a population of approximately 16 million people, which is an increase of nearly 4% from 2022, we can agree that the best place to invest in land currently is Lagos, Nigeria, if you’re short on budget.
Epe, Lagos: The cheapest place to buy land in Nigeria
Epe, Lagos, Nigeria, is the new hub of real estate investors and brokers. The ongoing developments in the region have sparked interest among people who are looking to invest in land. Epe has some of the most important landmarks in Lagos and even Nigeria as a whole.
On May 22, 2023, the Dangote refinery, located in Epe, was commissioned. The refinery is estimated to produce approximately 650,000 barrels of oil per day. The Lekki free trade zone is also located in the region.
Other popular land marks include Epe Fish Market, the proposed new airpot and seaport, Epe Resort and Spa, Alaro Satellite City, and other popular higher institutions.
The fact that Epe is also located in the island part of Lagos also increased the value of land because population growth will shift towards that area, which is already happening. A lot of real estate companies are now developing luxury estates in the region, expected to be completed in a few years to a decade. Some people tagged it the new London.
Cost of buying land in Epe
Epe Land currently sells for between 500,000 and 7,000,000 naira, depending on the location. To be realistic, you can get 300 square meters of land for just 2,000,000 and yield a return on investment of 50%–100% in a year.
Varosi Properties has some of the most affordable land in Epe with a guaranteed ROI of 50%–100% annually. You can head over to the Varosi Properties land listing page to check for available lands for sale. If you want to enjoy the wealth rush that comes with investing in Epe, now is the best time to do so.
