The question, Where do I invest? is one of the first questions a potential investor asks when considering investment options. And when it comes to real estate, that question is asked as WHERE is the best place to buy? In this article I help you do the math.
The Best Place to Buy a Land in Lagos
When determining which place to invest in real estate in Nigeria, my first advice is do the math before making the leap. To do this you need to consider two key factors, Location and Price appreciation of the land.
Let’s look at the word LOCATION and the role it plays in your real estate investment.
Location: It is the largest variable in the home/properties ownership equation.
But why does location matter so much?
The age old punch line “LOCATION! LOCATION!! LOCATION!!!” still rules and remains the most important factor for profitability in real estate investment. It is impossible to move a home or a land. Hence, when you buy a land or a house in a good location, you buy a solid long-term investment.
What exactly makes a good location?
Proximity to amenities, peaceful conforming areas, neighborhood status, perception etc are major factors for residential property valuations; while proximity to markets, warehouses, transport hubs, freeways, tax-exempt areas, etc play an important role for commercial properties valuations.
It is important to not only consider the current viability of a location but also the future viability.
For example, a N15m land purchased in 2003 in Lekki, would be worth more over N80m today than a N1m Land bought in Mowe at the same time. Price appreciation is the biggest and measurable financial benefit to property investors.
Popular Places to Buy a Land in Lagos
There are a few popular places to buy a land in Lagos. They include:
- Ibeju Lekki
Of these places, Ibeju Lekki has more going for it.
It’s the fastest developing axis in Nigeria right now with great landmarks (Free Trade Zone, New Airport, Dangote Refineries).
Ibeju Lekki is cheap to afford (N600k – N5million a plot), making it one of the places to buy cheap land in Lagos. Even though there are also cheap lands in Ikorodu and Mowe those places have no landmarks and no major development happening. Therefore the lands are likely to appreciate at a very slow pace to make it worth your while. 5 years later and there still might not be much difference between the price of lands in those places and the price you bought them for.
Price appreciation. Unlike Ikorodu and Mowe, there’s strong indication that the prices of properties in Ibeju Lekki will appreciate very quickly. And that’s because the state government, Dangote and other outside investors are well invested in several major projects in Ibeju Lekki because of the Lekki Free Trade Zone.
If you buy a property close to the Lekki Free Zone Trade now, when all the ongoing projects there gets completed, all the properties around that axis will quadruple in price within a really short time.