It is no longer news that Lagos has become a goldmine for the real estate industry in Nigeria. It is a small city with a large population and a lot of activities.
The city of Lagos is popular for a lot of reasons and one of the most popular reasons is real estate.
If you are an investor then you have probably been advised to buy land in Lagos on more than one occasion, or maybe you’re the one giving out the advice.
In any case, buying land or any real estate property in Lagos is a smart investment plan that has the potential to yield a lot of profit.
In this article, we will be going over all the reasons why you should buy land in Lagos, so let’s get started!
- 1. Population
- 2. Increased Demand For Rental Properties
- 3. Economic Development
- 4. Lower Risk
- 5. Smart Investment Plan
- 6. Rapid Urban Development
- 7. Fast Appreciation Of Properties
- 8. Infrastructure
- 9. Security
- 10. Diversification
- 11. Transportation
- 12. Political stability
- 13. Growing technology sector
- 14. Diversify your portfolio
- 15. Prime location
- Best Places To Buy Land In Lagos
- Conclusion
- Related
1. Population
The population is a major factor that has a direct effect on real estate. This is simply because a larger population density raises the demand for local real estate.
With a rapidly growing population, there is a constant need for housing, and this creates an opportunity for real estate investors. So if you are looking to buy land in Lagos, this is a very good reason.
Lagos is the most populous city in Nigeria and one of the fastest-growing cities in Africa. It is the most ideal area for the real estate business.
Lagos State has an estimated population of over 21 million people, and it is projected to grow by over 50% in the next few decades.
People in Lagos are constantly in search of affordable housing, and as such, there is a high demand for rental properties and homes for sale.
Several real estate developers have taken an interest in residential rental properties because of the high demand for them.
As the demand for housing continues to rise, the value of land in Lagos is likely to increase. As such, if you decide to buy land in Lagos you would be able to generate a high return on your investment in the future.
2. Increased Demand For Rental Properties
If you are familiar with housing in Lagos state, you know that people generally prefer to rent than buy a house mainly because of the cost of buying a house.
This results in an increase in demand for rental properties in Lagos.
As the demand for rental properties increases, the value of land in the area is likely to appreciate over time.
This means that if you buy land in Lagos now, its value could increase significantly in the future if you decide to sell it.
Also read: How To Start Investing In Rental Properties In 2023
This appreciation potential could provide an excellent return on your investment over the long term.
You could also decide to build rental properties on the land you purchase. This way, you can generate a steady stream of rental income.
You are likely to quickly find tenants willing to pay higher rents as soon as the construction is complete, thereby increasing your income potential.
This income stream can be a reliable source of passive income, providing you with financial security in the long run.
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 is the commercial capital of Nigeria and a major financial center for the West African sub-region.
It continues to serve as Nigeria’s commercial capital even after the country’s administrative capital was transferred to Abuja in 1991.
It has a diversified economy with major contributions coming from various industries including finance, technology, manufacturing, tourism, and logistics.
Lagos is a strategic location for businesses looking to expand their operations in the region and have access to a large market.
Lagos is known for its business-friendly environment. The state government has implemented several policies that make it easy for businesses to thrive in the state.
Also read: Complete Guide To Starting A Real Estate Business In Nigeria
The state has a relatively low tax regime compared to other states in Nigeria, and the government has also implemented reforms to simplify business registration and licensing.
The Lagos State Government has also made significant investments in infrastructure development in recent years.
The construction of new roads, bridges, and other transportation infrastructure helps to improve connectivity within the city.
This has made it easier for businesses to transport goods and services within the city and beyond.
The city’s significant growth in recent years has attracted quite a lot of businesses, and the demand for commercial and industrial properties is on the rise.
This gives you a very good reason to buy land in Lagos, especially if you are looking to invest in commercial real estate and benefit from the city’s economic growth.
4. Lower Risk
Another good reason why you should buy land in Lagos is because of the lower risk in investment, it provides a level of security and stability to your investment.
The land is one of the most valuable assets in Nigeria, and owning land in Lagos can be a significant source of wealth.
Unlike other investments, land ownership is a tangible asset that cannot be destroyed or stolen, and it can provide a secure financial future for you and your family.
Assets like bonds, stocks, mutual funds, 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 value fluctuations, however, if you decide to buy land in Lagos, you are less likely to be affected by these changes.
This is simply because the possibility of your land losing value is very low.
5. Smart Investment Plan
If you are interested in investing in real estate, then you should definitely buy land in Lagos. Buying land in Lagos, Nigeria, can be a smart investment plan for several reasons.
Lagos is the commercial hub of Nigeria, with a population of over 20 million people, making it one of the largest cities in Africa.
The city is also known for its high level of economic activities, making it a prime location for business and investment opportunities.
The rate of return on investments in the real estate industry 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 land in Lagos.
Purchasing land in strategic areas of Lagos will prove to be more profitable than others, this is because of the fast rate of value appreciation in these areas.
There are several areas in Lagos, Nigeria, that are considered good locations to buy land but some of the best areas include Lekki, Victoria Island, Yaba, Ajah, and Ikoyi.
6. Rapid Urban Development
Lagos is one of the fastest-growing cities in Africa, and it has experienced significant urbanization in recent years.
It has the highest rate of urban development in comparison to other states in Nigeria, with an urbanization rate of more than 16 percent.
The thing about urban development is that it often leads to an increase in the value of properties in the area. Making this an excellent reason to buy land in Lagos.
7. Fast Appreciation Of Properties
Investing in real estate is by no means a quick way to make money. It takes time for properties to gain value, and only the patient people who make smart investment decisions end up making a significant profit.
This is the same case with real estate properties in Lagos, however, the rate of appreciation of properties is relatively faster than in other states in Nigeria.
As people are constantly moving in to work, start businesses, or settle down, the demand drives up the prices of land and properties, resulting in fast appreciation.
This is one of the major reasons to buy land in Lagos.
8. Infrastructure
Lagos has been undergoing significant infrastructural development in recent years, with the construction of new roads, bridges, and other facilities.
The city of Lagos is notorious for its heavy traffic, but in recent years, the government has invested in improving transportation infrastructure.
The expansion of the Lagos-Ibadan expressway, the construction of the Lagos light rail system, and the development of water transportation all contribute to making transportation in Lagos more efficient.
Accessibility and ease are major factors to consider before you buy land in Lagos. You need to think about the purpose of the land.
If you intend to sell it, you should consider access to basic utilities such as electricity and water, as well as security.
9. Security
There are several reasons why security can be a compelling reason to buy land in Lagos, Nigeria.
Security is an essential factor to consider when making any investment, especially in real estate.
Buying land in a secure location ensures that your investment is protected from vandalism, theft, and other forms of criminal activity that could lead to the loss of your investment.
Some areas in Lagos can be unsafe, but the government has been making efforts to improve security in the city, which is reassuring for potential investors.
If you are looking to buy land in Lagos, it is advisable to do your research and pick a safe neighborhood to avoid problems in the future.
10. Diversification
Lagos is a diverse city, with people from different cultures and backgrounds living together. The diversity makes it possible for just about anybody to become a landowner, provided you can afford it.
It also makes Lagos an exciting place to live and work.
11. Transportation
Transportation is a crucial factor that drives economic growth and development in any city, and Lagos, Nigeria, is no exception.
Lagos is a city with diverse transportation systems, including air, water, road, and rail. It has a well-developed transportation network that makes it easy to move around the city.
Lagos is located on the coast of the Atlantic Ocean, making it a major hub for transportation and trade in West Africa.
With its extensive road network, seaports, and airports, Lagos is a gateway to other parts of Nigeria and the West African sub-region.
If you buy land in Lagos that is well-positioned with these transport hubs, it can become a strategic investment that would provide easy access to markets and increase the value of the property.
12. Political stability
Despite occasional political unrest, Lagos has maintained relative political stability over the years, which is reassuring for potential investors.
If you decide to buy land in Lagos, you can be sure that the policies and laws regarding land ownership will not suddenly change.
13. Growing technology sector
Lagos is home to several tech startups and has a growing technology sector, that is attracting investment from local and international investors.
As the technology sector grows in Lagos, there will be an increasing demand for office spaces.
This presents an opportunity for individuals or businesses to invest in land and develop commercial properties such as office buildings or co-working spaces.
The technology sector is also known to create a large number of jobs, and this will be no different in Lagos.
This will attract more people to the city, increasing the demand for housing and commercial properties.
14. Diversify your portfolio
Diversification is an investment strategy that involves spreading one’s investment portfolio across various asset classes to minimize risks and maximize returns.
One asset class that can provide diversification benefits is real estate, and specifically, buying land in Lagos can be a good way to achieve this.
By investing in land in Lagos, you can diversify your investment portfolio and reduce the overall risk.
Real estate investments are often considered more stable than stocks and other financial investments, and they can provide a hedge against inflation.
15. Prime location
Owning land in a prime location, especially in a city like Lagos, can allow you to develop commercial properties such as malls, hotels, and office buildings, which could provide significant rewards.
Prime locations in Lagos are usually in high demand due to their proximity to important amenities and infrastructure such as schools, hospitals, airports, seaports, business districts, shopping centers, and recreational facilities.
This means that the demand for properties in these areas will always be high, ensuring that if you buy land in Lagos, your investment will always be in demand.
The value of the land could also increase significantly if the government decides to build infrastructure such as roads, airports, and seaports in the area, making the location more attractive for investment.
Best Places To Buy Land In Lagos
Not everywhere in Lagos is a goldmine for real estate. Before you buy land in Lagos, you must consider all the factors involved and choose where to invest wisely.
Some of the best and most popular areas to buy land in Lagos include:
1. Lekki
Lekki is a rapidly developing area located in the Eti-Osa Local Government Area of Lagos State.
It is a highbrow area with excellent infrastructure, including good roads, a reliable power supply, and access to clean water.
Lekki is home to some of the most luxurious estates in Lagos. It is a great area to buy land in Lagos for high-end real estate investors.
Lekki is also known for its beautiful beaches, world-class shopping malls, and top-rated restaurants, making it a prime location for real estate investment in Lagos.
2. Victoria Island
Victoria Island is one of the most exclusive neighborhoods in Lagos and is considered the commercial and financial hub of the city.
It is an upscale area with luxury hotels, high-end restaurants, and several multinational companies’ headquarters.
Victoria Island is also home to some of the most expensive real estate in Lagos, making it a prime location to buy land in Lagos for high net-worth individuals and real estate investors.
3. Ikeja
Ikeja is the capital of Lagos State and is located in the mainland area of Lagos. It is a bustling commercial hub with a growing population, making it an attractive location for real estate investment.
Ikeja has excellent infrastructure, including good roads, a reliable power supply, and access to clean water.
It is also home to several government offices, multinational corporations, and the Murtala Muhammed International Airport.
These factors make Ikeja a great place to buy land in Lagos.
4. Ajah
Ajah is a fast-growing area also located in the Eti-Osa Local Government Area of Lagos State.
Also read: 7 Ways To Verify Genuine Lands in Epe, Lagos
It is located near Lekki and Victoria Island and is known for its well-planned estates and good road network.
5. Ikoyi
Ikoyi is a high-end residential area located on Lagos Island. It is a prestigious neighborhood with luxury apartments, high-end villas, and waterfront properties.
Ikoyi is known for its exclusivity and is home to some of the most affluent people in Lagos.
The area is well-developed, with good infrastructure, including excellent road networks, reliable power supplies, and access to clean water.
Conclusion
In conclusion, buying land in Lagos State is a very smart investment for several reasons. If you are on the fence about making a decision, I’m sure this article helped you put some things into perspective.
So what else are you waiting for?
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