In this article, we’ll take a look at some of Lagos real estate trends so you can make the best decision as a real estate investor, realtor or broker. For the past few years, Lagos has gone from just being the busiest city in Nigeria to the hub of real estate investors.
10 years ago, a luxury smart home wasn’t really a thing, or should we say it was considered a flex for the rich? I’ll say yes because the cost of setting up a smart luxury home then was huge compared to now that technology has evolved a lot.
Similarly, Plaster of Paris (POP) wasn’t really a feature an average person looked out for when renting a home a few years ago, except for people who had the bag. There is a saying in Nigeria: “If skin no full, no put body “ which literally means if you don’t have the bag, don’t ask for the cost. That was most people’s story, then, but I guess the tide has changed.
Lagos real estate trends: Demand determines supply
In any market or supply chain, demand is always a key factor. In this section, we’ll have a look at some of the things that are in high demand when it comes to housing and real estate.
1. Short lets
The demand for short-term rentals has skyrocketed significantly in the past couple of years. In previous years, hotels were a big deal for business individuals. Fast forward to now, and technology has changed everyone, be it negatively or positively.
In today’s Lagos, everyone is always looking for ways to escape the busy city for a while. 95% of people will want a furnished house they can rent for a couple of days far away from their work or a home where they can unwind.
Being a digital nomad, content creation and influencer also became things, all thanks to technology and new inventions. These demands and desires increased the demand for short-term rentals.
If you’re looking to go into real estate or property investment, then you should definitely consider short-term rentals.
Short-term rentals generate between 5 million and 100 million naira monthly for investors in Lagos, Nigeria, depending on the location of your building, the quality of finishing, and the furnishing.
2. Mini Estates and Studio apartments
You don’t need to have hundreds of millions of naira to own an estate in modern-day Lagos. Real estate investors are now buying a few plots of land from 5 to 10 to build identical structures with very good space management.
On each plot, they build mini flats, studio apartments, and duplexes for the main purpose of either using them for short-term rentals or reselling them at a very profitable rate.
Mini-estates like that are now very popular in Lagos, and they sell out very fast because the population of Lagos is increasing at a very alarming rate and spinsters and bachelors just need a small space to call home.
You can easily get affordable land in some parts of Lekki and, especially, Ajah that are well developed. Development is now shifting to those regions, primarily because of the buzz around the future London called Epe.
If you don’t have the capital to get started, you can easily make it an open contract, inviting random individuals to key into the investment even before laying a single brick. This style of investment is now very popular in Lagos, and you’ll always see people who are willing to give away a few million naira just to own a share of the property with the hope of owning a space and getting a good return on investment when the structure is eventually completed and starts letting or gets sold out.
3. Proposed luxury estates
I believe you have also heard of the new money-generating region called Epe. The local government has gained so much recognition in the past few years that if you don’t have an investment there, you feel like you’re missing out and will almost cringe at the way realtors are chanting the town’s name.
Well, Epe is the new big boy money, primarily because of the developments ongoing in the region. In May this year, the Dangote refinery, which has been in development since 2017 and was proposed to produce 650,000 barrels of oil per day, was commissioned.
The Lekki free trade zone, Alaro City, the proposed new airpot, the proposed new seaport, and Augustine University have all contributed to the development of Epe, alongside major infrastructural developments being done by the Lagos State Government.
A lot of real estate companies have shifted their focus to that region by acquiring land in mass with the main purpose of building luxury real estate with the money gotten from reselling the land at a premium price.
If you have the capital to acquire hectares or acres of land, do so as soon as possible so you can also start your own luxury real estate project. If you don’t have that much capital, just buy a few plots of land from existing projects in the region and take a back seat as the value of your land increases.
The value of land located in Epe is said to be increasing at a rate of 50%–100% annually. If you’re really keen on making money with real estate, you should invest now.
Affordable land in Epe, Lagos, Nigeria.
You can get a 300-square-meter plot of land in Epe for 500,000 naira to 7 million naira, depending on the location of the project and its proximity to popular landmarks.
Varosi Properties has some of the best projects in the region. Currently, Ivory Hill Estate sells for around 2 million naira per 300-square-meter plot of land to 4 million naira for a 600-square-meter plot of land.
The good thing is that you can spread the payment for six to twelve months with an initial deposit of just 500 thousand naira. You can check out all the available projects in Epe that you can invest in by clicking the link below.
