Real estate amongst others, is a necessary investment if not, the best investment, because it provides better returns and minimizes risk factors. The real estate sector in Lagos, like in other countries, gears the wheels of economic growth in the country. To make it count, you should adhere to reliable judgements before diving into investing straight away. The location of your real estate investments is vital to see the best possible future result. Hence, it is necessary to know the best locations to invest in Lagos and how they can affect your returns.
Lagos, though not the largest city, is the most populous city in Nigeria. It is an urbanized area and considered the centre of commerce. This makes it attractive to millions of people yearly; both Nigerians and foreigners. These facts about Lagos increase the housing demand in the state and hence it is a ripe spot for real estate investment.
There is rapid growth in Lagos state and you can tap into it by investing wisely in the right locations. This article will highlight the 3 most lucrative locations to start your real estate investment. It should serve as a guide to help you get the most of out the Lagos real estate market space.
Top Three Locations To Invest In Lagos
Surulere is a popular city in Lagos, known for its inclusiveness in residents. It is the home of several settlers from different towns around Nigeria, including the emancipated slaves from the 19th century. Surulere gained its popularity because of the Second World Black and African Festival of Arts and Culture; FESTAC ‘77. It is home to notable landmarks like the National Stadium, Teslim Balogun Stadium, National Arts Theatre, and other popular landmarks.
All these factors, in addition, let’s look at some things that make Surulere great for real estate investments.
Safety and Security
This is a great concern for most people, especially with the current situation of the country. Some questions you need to ask are:
- Is this a safe area for investment?
- Is your property at risk in this area?
- What are the security measures in this neighbourhood?
- Is there a need to worry about hooligans and touts?
Seeing as Surulere is a relatively safe area, the answers to these questions are at least 60% positive. Security in Surulere for lives and properties is a top priority and hence you can see several security organizations with their personnel properly distributed around the area. This makes it a safe environment for residential purposes and real estate investments.
The road network in Surulere is as good as it gets. It is an accessible area that links to Lagos Island through Eko Bridge and Links to Lagos Mainland through Ojuelegba.
It is also a popular commercial centre with locations such as Leisure Mall, Adeniran Ogunsanya Mall, pulsing dance clubs, upscale bars, and top restaurants.
The rental value of Surulere and its surrounding areas is suitable for low and middle-income earners. The annual rent is averaged at ₦1,200,000 per annum and can be as low as ₦650,000 for a one-bedroom apartment.
Renters consider it an affordable option. This makes it easy to offer your property for rent as a property owner or real estate investor.
Property developers are investing in Surulere real estate environment because it is a great and safe area to raise a family and grow. Its scenery, good roads and interesting site attractions are just icing on the cake. Lastly, it is home to some notable individuals like Wizkid, the afro beats artiste, past governors, and other Nigerian celebrities.
Yaba is a really popular commercial area in Lagos. When you hear ‘Yaba’, the popular ‘Yaba market’ or ‘Tejuosho market’ comes to mind. It also houses the famous University of Lagos and YabaTech Polytechnic. Generally, students and youth populate Yaba. It holds a lot of side attractions to befit its setting as a youth-populated area.
Yaba is an investor’s dream, a location for everything. You can find numerous boutiques, loads of food stores, educational facilities, sports centres, cosmetic stores, movie theatres, and health facilities, including the popular psychiatric home nicknamed ‘YabaLeft’.
Safety and Security
Yaba is a relatively safe area to live, work, and invest in. It has a fair distribution of police stations to maintain safety in the area. For you that is trying to invest, your concern should be real estate fraud in Yaba. Just like any other region, you should check all the land documents and do your due diligence before any financial commitment.
Yaba is a central region in Lagos state. It connects the mainland and the island through multiple routes. Though several of the major roads in Yaba are presently under construction, the rental value will increase by 20% or more after the completion of these roads. This is a plus for real estate investors, and many will consider this the right time to look for profitable investments in Yaba.
As of 2022, the average rental value in Yaba for a one-bedroom apartment is ₦800,000 per annum. It can also go as high as ₦1,700,000 per annum depending on the size of the apartment.
Because of the student population, the demand for houses is very high and this has affected the prices of houses in the area. It has also increased the housing options to make it more affordable for the target youth market. So in Yaba, you can see multiple hostels and co-living apartments.
Yaba is definitely an area to find anything and everything, it’s like an all-in-one location. It is lively, and the residents are extremely diverse. In the tech age, Yaba has birthed several tech companies that provide employment for its youthful population. For a real estate investor, there are multiple investment options to explore in the area.
Imagine mentioning smart areas to invest in real estate in Lagos without the addition of Ikoyi. This is an area mostly populated by affluent Lagosians like top business moguls, billionaires, politicians, foreigners and high-income individuals. Ikoyi provides top luxurious housing like the popular ‘Banana Island’ and luxury hotels like The George Hotel, The Southern Sun Hotel, etc.
During the colonial era, the British expatriate designed the area we now know as Ikoyi as a residential community. It still retains these colonial residences which are largely responsible for the high cost of real estate in the area today.
Safety and Security
It is an extremely secure environment. The calibre of individuals in the area provides a lot of security. Apart from physical safety, residents in the area are somewhat protected from the noise population that constitutes a nuisance to Lagosians in other locations.
It has an organised road network that easily connects it to the mainland and the Lekki-Ajah axis.
The most recent statistics by Nigeria Property Centre places the annual rental value for a one-bedroom apartment at ₦3,500,000. This price goes up with the size and number of rooms in the apartment. Acquiring property investment in this area will be just as expensive as acquiring a home but the returns are worth it.
Ikoyi checks most of the boxes that you will observe when considering real estate investment. It is a beautiful environment and a recommended area for real estate investors.
Other Locations to Invest in
These other areas are notable for their serenity and security and like the general real estate environment in Lagos, they will increase in value. These factors mentioned above make them attractive to real estate investors. Some of these locations are :
- Ikeja GRA
- Lekki axis
What Area Will You Be Considering?
These 3 locations are prime areas for real estate investment because of their tendency for growth and expected returns. Just like any other investment, real estate investment should be undertaken with caution. Carefully considering the property location is one of the cautious steps to take. This blog is not final, but instead, it should serve as a guide to help you make the best decision.