When it comes to investing in real estate here in Lagos State, Nigeria, a lot of people embrace it due to how profitable it is. The rate at which property increases in value is so high; land appreciates rapidly, and rents increase on a yearly basis, especially if you secured a good property in a nice location.
Note: location matters, but these days, even places you think wouldn't develop fast do so with unimaginable speed due to the large and growing population in Lagos State and the high demand of properties by investors. A good example is where I live currently; we bought the land a few years ago with just a little million of naira, but now, you need many millions of naira to secure the same plot of land. All these increases, position investors to realize their capital in no time and make profits for some investors that resell after a few years.
There are many factors that contribute to fast property appreciation in Lagos State. Constant development is there; every now and then, there are ongoing projects, and this spikes the price of properties. There are numerous big businesses here attracting many investors in the state, which is also a contributing factor amongst others.
However, there is an important aspect of Lagos State real estate investment I want to talk about due to how much concern I feel about it. I am a realtor; I have sold land in Lagos and outside Lagos, and still counting. However, one thing some people overlook is land charting. If you fail to chart your land to see if the location is free from Lagos government interest, then you are investing at your risk. A lot of people were rendered homeless two years ago, just in an estate not far from mine. You needed to see beautiful duplexes and modernly designed bungalows being crushed down with caterpillars under the instruction of the Lagos State government.A man I know fainted seeing his beautiful building crushed into pieces; another man suffered severe high BP following the same incident. One other man went back to his village feeling hopeless. In fact, many people wept! It was so terrible to witness, and what's their offense?
The land wasn't free from government. The government already mapped out those areas for commercial purposes. These things can get seen prior to purchasing land as long as you use a professional to chart it. The other day, one of my clients was ready to buy one plot of land from me at 15m. I already calculated my commission and budgeted what I will use the money for, lol, only for me to get disappointed upon seeing the land chart result. The area wasn't free from government interest. It was written that the government has the plan to use the same area for health centers in the future. Good enough; this was discovered prior to investment and I was happy I advised the client to take the step so I don't get to regret making that sale in the future .
There are many things I would still love to talk about concerning real estate investment in Lagos considering my experience in the field so far, but maybe, next time, I will do the needful for, any one who needs such information.
In summary, there is no doubt that real estate investment is highly profitable in Lagos, but you must be ready to do thorough research before embarking on one to minimize risk.
Images were taken from canva