The city of Lagos is popular for a lot of reasons. Depending on who you ask, Lagos is the hub of activity, the city that never sleeps, the land of opportunities, the hustling and bustling city, or the center of excellence. In its diversity, Lagos is a state with something for everyone. It has everything from a vibrant nightlife to multiple job opportunities.
I’m sure you’ve heard crazy stories about Lagos and all the madness that comes with it— those stories are probably true. But all the chaos and activity make it a goldmine for real estate. It is undoubtedly one of the best places to own property in Nigeria. If you are still doubtful, here are 12 reasons why you should buy a house in Lagos;
- 1. Population
- 2. Increased Demand For Rental Properties
- 3. Economic Development
- 4. Job Opportunities
- 5. Lower Risk
- 6. Tourist Attractions And Leisure Spots
- 7. Lively Nightlife
- 8. Smart Investment Plan
- 9. Educational Institutions
- 10. Stable Political Environment
- 11. Rapid Urban Development
- 12. Transportation And Accessibility
- Final Thoughts On Why You Should Buy A House In Lagos State
1. Population
It is common knowledge that population has a direct effect on real estate since a larger population density raises the demand for local real estate. It is simple to observe how population growth can affect the housing market, the people have to live somewhere after all.
Also, businesses seeking to establish new facilities or branches frequently look to regions with rapid population expansion, which also drives up the cost of commercial real estate.
Lagos state is the most populous state in Nigeria which makes it an ideal area for the real estate business. The population in Lagos state is estimated to be over 22 million people with a 3% annual increase rate. The ever-growing population of this state increases the demand for housing, and as a result, the cost of real estate continues to increase.
If you buy a house in Lagos you can be sure that your property will not lose its value. Although it is impossible to predict the future, it is generally reasonable to assume that buying a house in Lagos neighborhoods like Yaba, Ikoyi, Lekki, and Ikeja would result in a higher return on investment than purchasing a home in another Nigerian state.
This is because of the high population density in these areas. Also because of the large population, many businesses and companies are situated in Lagos so you have easy access to everything.
2. Increased Demand For Rental Properties
Many people prefer to rent than buy a house in Lagos mainly because of the high cost of home or land ownership and the poor mortgage system which offers unreasonable pricing rates. As a result, there is an increase in demand for rental property so you can buy a house in Lagos as a long-term investment and rent it out. By doing this you create a steady stream of income and you can sell the house later when its value has appreciated.
Because of their ability to quickly generate a return on their investments and the large supply of people willing to rent as soon as construction is finished, rental properties are planned for development by about 75% of landowners, indicating that developers are aware of the direction the industry is headed.
3. Economic Development
Lagos continues to serve as Nigeria’s commercial capital even after the country’s administrative capital was transferred to Abuja in 1991. This is because of its diversified economy with major contributions coming from industries in various fields including finance, technology, manufacturing, tourism, and logistics.
According to Statista, Lagos accounts for more than 53% of production employment, produces 25% of the country’s Gross Domestic Product (GDP), and uses more than 60% of its electricity.
Lagos is home to multiple companies and business enterprises including small and medium-sized enterprises. There are over 2000 manufacturing companies, 200 financial institutions, and several educational institutions among others.
Even in times of economic slump, this economic diversity in Lagos offers resilience and stability. This gives you a very good reason to buy a house in Lagos, especially if you are looking to profit from population expansion and economic activity.
4. Job Opportunities
As aforementioned, Lagos is the city of opportunities. You have the best possibility of finding a lucrative job in Lagos than in any other state in Nigeria. No matter what line of employment you are in, Lagos is likely to be the center of your industry.
It doesn’t matter what you are selling, you are more likely to find a market for it in Lagos. And that’s just how it is, people can turn just about anything into a job in Lagos.
This is why Lagos remains the main economic hub of Nigeria. It serves as the national headquarters for the majority of Nigeria’s government organizations, industries, and businesses. Buying a house in Lagos gives you access to these job opportunities.
5. Lower Risk
Assets like bonds, stocks, land, and others all experience value fluctuations over time because they are significantly influenced by prevailing economic conditions and public opinion.
Real estate is also subject to these changes, however, buying property in Lagos comes with a lower risk, This is simply because the possibility of your property losing value is very low.
There will always be high demand for housing in Lagos state because of the companies, businesses, schools, and organizations all located there.
6. Tourist Attractions And Leisure Spots
Lagos is a pleasant place to be. There are a lot of interesting places to visit either for fun and entertainment, relaxation, or educational purposes. It has a lot of theaters, beaches, malls, parks, pubs, and nightclubs. These spots are a great way to get away from the rush and bustle of the city.
Lagos serves as the number one spot for tourists due to its various attractions and activities. There are also numerous historical and cultural sites to visit, everything from museums to art galleries and carnivals.
If you enjoy sports, Lagos also has activities for you to choose from, including golf, tennis, bowling, paintballing, or horseback riding. Everyone can enjoy a trip to Lagos, whether they are traveling alone, with friends, or with family.
If you haven’t been to Lagos, you’ll be amazed by these hangout locations. Both on the island and the mainland, there are wonderful locations where you can spend the weekend and have a blast.
Some exciting places to visit include:
- National Museum
- Badagry Black Heritage Museum
- Terra Kulture
- Lekki Conservation Center
- New Afrika Shrine
- Ikoyi Golf Club
- National Arts Theatre
- Nike Art Gallery & Culture Center
- Freedom Park, Lagos
- Tarkwa Bay
7. Lively Nightlife
As they say, there is no party like a Lagos party. There are several performances to see and events to have a good time at. Lagos is home to some of Nigeria’s most popular hangouts, so city life is constantly exciting.
Also read; How To Make A House A Home
Lagos has the most vibrant nightlife with lively bars, classy restaurants, exotic lounges, and so much more. It is an experience worth having.
8. Smart Investment Plan
If you want to buy property as an investment then you should definitely buy a house in Lagos. According to the Lagos State Market Analysis, Lagos has the highest real estate costs among all the states in Nigeria.
The rate of return on investments in real estate properties in Lagos is at an almost unbelievable rate and it keeps increasing as the city continues to grow. This is the main factor to consider if you want to buy a house in Lagos.
Buying property in strategic areas of Lagos will prove to be a very smart investment plan when the value appreciates after only a few years. If you want to buy a house in Lagos, consider areas like:
- Akoka, Yaba: this is arguably the best place to buy property in Lagos. It is at the center of Lagos, located on the mainland and close to the island. The proximity to the island makes it possible to live on the mainland where there are more affordable accommodation options and work on the island.
Yaba also has several educational institutions so there is a high demand for rental property and hostel accommodations in this area.
- Lekki: this area is infamous for rapid development, the value of land here is assumed to appreciate every day. It is located on the island and is prone to flooding. However, it is still a great area if you want to buy a house in Lagos.
- Ikeja: Lagos state’s capital, Ikeja, is situated on the mainland and linked to other peaceful neighborhoods like Magodo and Maryland. Many government employees work there because several government organizations have their offices situated there. For instance, the Lagos State Government Secretariat and the Governor’s Office.
Ikeja is highly central, therefore you can get anywhere in Lagos State quickly from there. It also has low crime rates because of its high security and its prestige. The Air Force Base, Military Base, and Police College are also located in Ikeja. This area is also less vulnerable to natural disasters like floods than many Lagos neighborhoods are.
- Sangotedo: Sangotedo is another excellent location in Lagos to purchase real estate. In just a few years, this neighborhood has experienced a commercial boom and is now one of the best places on the island to buy land. There are currently a lot of estates and houses there, and more are probably going to appear in the future.
9. Educational Institutions
There are several educational institutions in Lagos state including major higher institutions like the University of Lagos (UNILAG), Lagos State University (LASU), Yaba College of Technology (YABATECH), Lagos State University of Education (LASUED), Federal College of Education, National Open University of Nigeria (NOUN), among others.
10. Stable Political Environment
Given that the real estate industry contributes significantly to a nation’s overall economy, the impact of government policy on the real estate market is substantial. Government policies stabilize the economy, direct decision-making, and sustain a favorable business environment.
Policies are developed in consultation with sector specialists as they reflect the interests of various stakeholders. Government policy is connected to each component of the real estate sector: physical, financial, individual, and land use.
Lagos has a relatively stable political environment having been under the leadership of the same political party since 1999, which is over 2 decades. This has a positive effect on real estate because projects and developments are carried out in accordance with the rules and regulations set by the government.
So a stable political environment implies that crucial initiatives that promote progress are not changed as a result of politics. If you decide to buy a house in Lagos you can be sure the policies and rules are not going to just suddenly change.
11. Rapid Urban Development
Lagos state has the highest rate of urban development in comparison to other states in Nigeria, with an urbanization rate of 16 percent. Lagos has achieved megacity status, therefore the land or house you are purchasing today is sure to add value sooner than you might think.
12. Transportation And Accessibility
Another reason you should buy a house in Lagos is because of the transportation and accessibility. The first thing that comes to mind when you think of transportation in Lagos is traffic jams. But Lagos state is very accessible and has a fairly good transportation system in comparison to other states in Nigeria.
Also read: 10 Reasons You Should Buy A House In Abuja
Lagos can be accessed through the four modes of transportation, air, land, sea, and railway. There are local and International ports that make it possible to access the state from anywhere in the world. It also makes it possible to move cargo in and out of the city.
The railway links Lagos to other popular states like Ibadan, Abeokuta, Kano, Zaria, and Kaduna. Most roads in Lagos are simple to navigate, there are traffic lights and signs to keep you in check.
With the exception of densely populated areas, Lagos is easily accessible which benefits anybody looking to buy a house in Lagos either as an investment or to live there.
Final Thoughts On Why You Should Buy A House In Lagos State
In conclusion, if you have been considering buying a house in Lagos State, this article has provided enough reasons why you should proceed to buy a house in Lagos this year.
There are many benefits and little to no risks involved. So what are you waiting for why not buy a house in Lagos today?
