Real Estate in Lagos is one of the sectors that is helping to change the face of the city and meeting the megacity ambitions through developments and infrastructures that are springing on every corner within the city and giving you a huge return on investment. (ROI)
These have driven the stakeholders in the industry to participate actively, especially investors and also have allowed some Nigerians in the diaspora to be encouraged knowing fully well the return on investment and willing to key into these enormous opportunities that the industry in Lagos is offering.
It is well documented that for the last 4 years Real Estate in Lagos is booming than in any part of Nigeria, in fact, a lot of home buyers and investors have shifted their buying interests in properties from Abuja to Lagos since Properties in the Lagos are over-priced, which gives them more of return on investment. (ROI)
In addition, most top oil and gas companies in Abuja and Port-Harcourt have or are moving their Head Quarters back to Lagos, these are contributing to the huge demands of properties in Lagos, whether they are residential, commercial or industrial real estate, which in turn are giving the developers, owners, and landlords huge returns on their investments(ROI) or properties.
At the moment some lands in Lagos that were bought below N 1,000,000 or N5,000,0000 about 3–5 years ago are now selling between N15,000,000 — N50,000,000 per plot depending on location in Lagos. e.g. a plot (500sqm) of land within the Periwinkle life Estate was sold for N50,000,000 in 2016–2018, now worth over N180,000,000 that is a huge return on investment for such investor, with over 125% return on investment (ROI) within a year or two.
No other investment could guarantee you that much, neither any of the financial institution’s available investments could be guaranteed that much.
However, there are some Apartments at strategic places or locations on demand that could guarantee investors such return on investment within 2–3 locations such as periwinkle lifestyle estate in Lekki, and some other properties in Victoria Island and Ikoyi.
In addition, there are some developers that are offering investment packages to investors.e.g. a developer is offering its investors 18–20% return on their investments, if they invest N10,000,000 — N50,000,000 and they are guaranteed to receive their principals back within a year plus the returns, but the other of this is that the investors do not own such properties, it is purely invested in and cash out after a year.
This strategy is helping developers to have funds to speed up their projects and embark on others as demand increases.
In conclusion, based on my findings I believe that Properties in Lekki, Victoria Island, and Ikoyi are still the highest return on investment in properties in Lagos because you are guaranteed to have some huge ROI within space of 2–5 years.
ANYIWO UZOMA GEORGE.