7 Factors That Determine Real Estate Price In Lagos
One major concern and problem with people who buy real estate in Lagos, Nigeria is that the price is too expensive or the property is overpriced.
Buying property in Lagos is not for the weak or for the poor especially when buying from a registered real estate company. However, buying property in Lagos is made easy via the installment payment.
Why is land so expensive in Lagos? Why is property in Lagos overpriced? What leads to sudden price increases in real estate in Lagos?
These are questions bothering the heart of people when they intend to buy property. Most especially first-time-investors. They are always worried about what could make property to be on the high side.
If you have a similar question in mind, don’t worry because I am here to answer those questions. Below are the 7 reasons why property in Lagos is on the high side.
- GOVERNMENT PRESENCE:
One reason why the price of real estate is costly in Lagos is because of the presence of the Government in such an area. Once the Government has one major project or the other to do in a certain location, just know that any property in such an area will be on the high side.
Government projects could include the building of a seaport, international airport, or any project you could think of. Property in Epe around 2018-2019 would cost you below 500k but right now if you don’t have 3 million naira upward you can’t own a plot of land in Epe.
Government presence always yields massive development, which is why property is on the high side.
- GOOD ROAD NETWORK:
Road network and infrastructure is other factors that guarantee high prices in real estate. Once there’s access to a good road, expect such property to be on the high side, especially for real estate companies.
Property facing the road is more expensive because it is directly on the road and easily accessible.
ATTENTION: If you are looking for property to buy facing the road in Lagos. Please send a message to us below.
- EXISTING OR DEVELOPED ESTATE:
There are properties available for sale that are located inside an existing or developed estate. Existing estates are estates where people are already living. Most time, property like this is bought and built.
When you buy property inside a developed estate, kindly expect the price of the property to be on the high side.
- COSTS OF BUILDING MATERIALS:
This is another major reason why property is expensive in Lagos. With the high cost of building materials such as cement, iron rods, and other equipment, the price of property in Lagos would also be affected.
- TITLED DOCUMENT:
Buying property with C of O is very expensive in Lagos. Have that in your mind. Buying C of O property in Lagos will cost you over 30 million naira (as of July 2024). Titled property also contributes to the high price in land and houses in Lagos.
READ THIS: 10 TYPES OF LAND DOCUMENT IN NIGERIA
ATTENTION: Are you looking for a C of O land to buy in Lagos? Please send a direct message below.
- LOCATION:
In real estate, Location is everything. Location is what determines the price of property. In some locations, prices are cheap and in some other locations, prices are expensive.
You can’t compare the price of property in Ikoyi, Banana Island, Victoria to that of Ibeju Lekki and Epe. So when buying property in Lagos, you need to consider the location based on your budget.
Don’t budget 50 million naira and expect to get property to buy in Ikoyi or Lekki Phase 1. That 50 million naira can only buy you property at Ibeju Lekki or Epe.
- ECONOMY OF THE NATION:
The economy of Nigeria also has a great influence on the price of real estate in Lagos and also some parts of the country such as Ibadan, Abuja, Port Harcourt, Abia, and so on.
Prices and inflation of things affect everyone including the real estate developer. The price of everything is going up so the developer of the estate will have no option but to increase the price of the property.
In conclusion, some other factor that determine price increases in real estate in Lagos is administrative charges and other miscellaneous from the company.
Now, you have understood the 7 factors that determine the price of real estate in Lagos. This will enlighten you to budget well and invest where you budget it. The goal is to become a land owner or an investor in Lagos.
If your budget can only buy property around the Lekki-Epe Expressway, please buy it. Don’t compare yourself with those who are buying land or houses in Ikoyi or Banana Island.
For more inquiry and details about real estate investment in Lagos, Please call or WhatsApp Peter at +234 901 509 4850 or click on the WhatsApp button on your button.
