Investor confidence, rising on the back of ongoing reforms in Nigeria, means more investors are out there seeking opportunities to tap into. Real estate is one of the few sectors in the economy that offers such opportunities.
Though real estate always favours investors with patient capital and a long-term view of the market more, changing dynamics in the social and economic lives of Nigerians have thrown up market nodes in the country’s major cities where investors can make ‘easy bucks.’
Lagos, the country’s commercial nerve centre, presents limitless investment opportunities in real estate, especially housing, on account of its expanding population and ever-increasing urbanisation, both driving demand for accommodation to breaking point.
BusinessDay findings show that demand for homes, especially apartments to rent, is at levels never seen in the state in the last decade. This corroborates a new report which reveals that over 70 per cent of the Lagos population, estimated at 24 million, lives in rented accommodation.
The findings pinpoint four areas or market nodes in the state where investors can find opportunities, explaining that these areas have the highest demand for two-bedroom apartments for renting.
Nigeria Property Centre, an online property research platform, notes that all over Nigeria, 63.5 percent of all prospective tenants searching for 2-bedroom apartments to rent are in Lagos, followed by Rivers State with 22.0 percent, and Abuja with 10.1 percent.
According to the Centre, in Lagos, Ibeju Lekki, Lekki, Yaba and Surulere stand out as market nodes where rental activities are most upbeat, reflecting a strong desire by renters to live closer to their offices, and areas with new developments and high economic activities.
IBEJU LEKKI.
This community, located on the eastern side of Lagos State, offers easy access to both urban and coastal environments and stretches along the Lagos-Epe Expressway. It harbours several prominent communities, including Awoyaya, Lakowe, Bogije, Eleko, among others.
Ibeju-Lekki has been dubbed the ‘New Lagos’ due to the surge in developmental projects that have transformed it into one of Lagos’ most promising areas. Some of the landmark projects in the area are Lekki Free Trade Zone, Dangote Refinery, Lekki Deep Sea Port, and the proposed International Airport
These developments have led to a rapid increase in property prices and rental demand, making it a hotspot for real estate investment. Property Centre research shows 48.9 percent of renters looking for 2-bedroom apartments in the area favour Awoyaya; 23.2 root for Lakowe, while 8.6 percent prefer to live in Bogije.
LEKKI
This is a highbrow city located in the south-eastern part of Lagos. It is located right below the Lagos Lagoon and above the Atlantic Ocean. This area was formerly a slum called Maroko, but today it is known as one of the most expensive places to live.
Lekki offers immense opportunities for investors seeking to invest in rental apartments, especially small family units. Lekki Phase 1 is a destination with high demand for 2-bedroom apartments. It corners 30.1 percent of all the searches for this apartment size. Ikate Elegushi follows with 11.5 percent while Osapa comes next with 8.4 percent.
YABA
Yaba is a suburb located on Lagos Mainland. With its educational institutions and technological start-ups, Yaba is considered the technological hub of Lagos. Its proximity to Lagos Island has made it a sought-after location for middle-level workers on the Island.
Demand for rental apartments in this area is high. Renters who flock to this area mostly settle for Alagomeji, Akoka, Adekunle, and Ebute Meta, which account for 28.9, 11.8, 7.7, and 6.6 percent of those searching for 2-bedroom apartments to rent, respectively.
SURULERE
Surulere, located on the mainland, is one of Lagos’s most vibrant neighbourhoods. It is a middle-class settlement, serving as a link between the Lagos mainland and Lagos Island. Its closeness to Lagos Island makes it a destination for rental apartments.
Two-bedroom apartments in this location are snapped like hot cakes. Those who like to find homes in this area mostly prefer Bode Thomas, Aguda, and Alaka, which account for 16.7, 13.9, and 11.3 percent of searches for this size apartment, respectively.
This preference is understandable, given that each of these areas is just two or three streets away from Eko Bridge, which is the major gateway to Lagos Island, where most middle-class workers have their offices.
Any investment decision in these areas should consider the exact locations where demand is highest for both quick and good returns on investment.
