Articles by tag landed properties in Lagos

The real estate sector in Lagos is not just transforming the landscape of the city; it's also playing a critical role in achieving its megacity ambitions. The rapid development and infrastructure projects popping up across Lagos are yielding impressive returns for savvy investors.

As a result, stakeholders are actively engaging in the market, particularly investors, while many expatriates are drawn to the lucrative opportunities Lagos offers. This encouraging environment has prompted several Nigerians living abroad to consider real estate investments back home, fully aware of the significant returns available in this sector.

Over the past four years, Lagos has experienced a real estate boom unmatched elsewhere in Nigeria. Numerous homebuyers and investors have shifted their focus from Abuja to Lagos, despite higher prices in the area, because properties in Lagos tend to provide greater returns on investment (ROI).

Furthermore, many leading oil and gas firms that previously based their headquarters in Abuja and Port Harcourt are relocating back to Lagos. This shift is contributing to the growing demand for various types of properties—residential, commercial, and industrial—which in turn generates substantial returns for developers, property owners, and landlords.

Currently, land parcels that were purchased for less than ₦1,000,000 or ₦5,000,000 three to five years ago are now valued between ₦15,000,000 and ₦50,000,000, depending on their location. For example, a 500sqm plot in the Periwinkle Lifestyle Estate, which sold for ₦50,000,000 between 2016 and 2018, is now worth over ₦180,000,000. This represents an astonishing return on investment of over 125% within just a couple of years.

Such significant returns are hard to find elsewhere; traditional investments offered by financial institutions do not typically promise such high yields.

There are specific apartments and properties in prime locations like the Periwinkle Lifestyle Estate in Lekki, as well as other sought-after areas in Victoria Island and Ikoyi, that can also offer remarkable returns for investors within two to three years.

Moreover, several developers are providing enticing investment packages. For instance, one developer is offering returns of 18–20% to investors who commit between ₦10,000,000 and ₦50,000,000, promising to return the principal plus interest within a year. It’s important to note that in these arrangements, investors do not hold ownership of the properties; they solely invest their capital to earn returns.

This model is beneficial for developers, allowing them to secure funding to accelerate existing projects and initiate new ones as demand rises.

In conclusion, my research indicates that properties in Lekki, Victoria Island, and Ikoyi remain the best opportunities for substantial returns on investment in Lagos. Investors can expect significant ROI within just two to five years, making these areas prime targets for anyone looking to capitalize on the thriving Lagos real estate market.