How Many Years Is It Good To Keep A Land In Nigeria Before I Can Sell?

how much will it cost to buy a land in Nigeria

If you’re a real estate investor wondering about how many years to keep a land in Nigeria before you can sell for profit or for how many years to keep it before it can appreciate then here’s a reasonable answer for you that I hope you will find useful.

How many Years is it Good to Keep a Land for you to maximize Profit?

Well it depends on the kind of profit you will be satisfied with. While one investor may be satisfied with 150% return on investment another may not and therefore may want to leave the land for a few more years to appreciate more.

A land can only appreciate and never depreciates. Therefore it makes sense to think that the longer you keep a land the more it will appreciate. However the pace at which a land appreciates depends on the perceived value of the location of the land due to its attractions; landmarks and infrastructure facility. Keeping a land for 5 years in Ikorodu area for example and keeping a land for same number of years in Ibeju Lekki will not yield the same amount of profit. The pace at which properties appreciate at Ikorodu is much slower than the pace properties appreciate in Ibeju Lekki. Buy a land in Ibeju Lekki now and keep it for 5 years and then sell and you will make 1000% profit but same can’t be said for Ikorodu. And the reasons for this comes down to Landmarks and infrastructural facility.

Properties appreciates quicker when located in a commercial area. And within 10 years from now Ibeju Lekki will house the New Lagos, with the biggest commercial activities. Before then though properties in Ibeju Lekki will skyrocket in price as soon as Dangote refinery launch in 2019.

Read: Why Invest Now In A Land In Ibeju Lekki Lagos Nigeria

Also the more infrastructural facility an area can boast of, the more it adds to its real estate value and therefore the quicker the pace at which properties appreciates. Infrastructural facilities includes good roads and drainage, 24hours security, 24hours water supply, 24hours power, etc. Let’s use Nicon Town and Lekki Phase 1 as a case study. Lekki Phase 1 shares a boundary with Victoria island and there is a bridge linking it with Ikoyi through the Lekki-Ikoyi Link Bridge, but the value of its real estate properties for sale and rent is below that of Nicon Town because Nicon Town possess a lot of infrastructural facilities that Lekki Phase 1 can only dream of.

So now to a straight answer to the question, for how long is the best to keep land in Nigeria to make more profit.

How long you keep a land in Nigeria should be how long it takes to get the profit you are satisfied with. If you’re not in a hurry to get your money back, then you should keep the land if it is yet to yield the kind of profit you’re satisfied with. However if you have kept the land for a few years now and no impressive return on investment then you have one of two options:

  • Continue to keep the land and hope that the area will suddenly improve in commercial activities and therefore pick up its pace in price appreciation or the option I recommend…
  • Sell the land immediately and use the money to buy a land in Ibeju Lekki. I guarantee you that within the next few years you will make more than 500% return on investment.

For Further Reading…

Nigeria Real Estate Investment – Why Invest In Lagos Properties

Nigeria Real Estate Investment – 5 Reasons You Should Invest In Land Instead

The Best Place To Buy Land In Lagos – Where To Invest

Is Ibeju Lekki Also Lekki?

Why Buy Land From Real Estate Company Instead Of Omonile

Land Investing – What Kind Of Land Is It Safe To Buy? Classes of Lands

I Want To Buy A Land In Nigeria How Much Will It Cost Me?