Real Estate
Uncovering the Factors Responsible for the Surge of Real Estate Prices in Lagos

Uncovering the Factors Responsible for the Surge of Real Estate Prices in Lagos

Uncovering the Factors Responsible for the Surge of Real Estate Prices in Lagos

1: Location

One of the major factors responsible for the aberrant price surges in real estate investments in Lagos State is “Location”. If you joined our virtual live series with David Abayomi (CEO Onyxglobal), you probably already know that for all real estate investments, location is very important. To view a recap of the live session, click here

Thus, proximity to commercial centres, transportation hubs, educational institutions, and many more factors significantly affect the price of real estate. Lagos is the heart of commercial activities in the country. The state internally generated a revenue of over 179 million naira in the first quarter of 2023 alone. Lagos is no doubt a prime location because of its myriad of commercial activities and infrastructure; this is one of the major reasons responsible for the continued surge of real estate prices in Lagos.

As an investor, it is always advisable to acquire properties in prime locations. This has been explained in our previous blog post, to read more about it, click here

You can start your real estate investment journey with us by investing in the prime location of Lagos. Find some of our affordable products below. 

2: Economic Conditions 

As discussed earlier, Lagos is a prime location for real estate investments, and this is largely because of the fast-paced economic development of the city. The overall economic strength of the city is highly impressive. Lagos State internally generated almost 180 million naira in the first quarter of 2023 alone. Major contributors to the economic strength of the state include; income rates, employment opportunities, and the commercial activities of companies within the city. The economic strength of the state has led to significant changes in the pricing of real estate in Lagos. A strong economy often leads to an increment in property prices.

Most of the major economic spots in Lagos are already saturated. Companies have taken up spaces all over Victoria Island and Lekki. The future of economic activities is slowly tilting towards Epe. This is evident as major investors have already taken advantage of the buzz and they have had their share of the future of Lagos. Dangote refinery, Lekki international airport, golf courses and resorts have invested over 200 billion dollars in real estate in Epe. You can join the league of these smart investors and focus on the future of Lagos With as low as 2.5 million naira, you can invest in the future of Lagos. Send us an email to get started.

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3: Demand and Supply 

The simple principles of ‘Demand’ and ‘Supply’ in Economics best explains the reason for the price surges in properties in Lagos. We have previously discussed how Lagos is a prime location and the buzz of economic and commercial activities in the state. The consequence of all this is an increased demand for property within the city. The real estate properties demanded include residential and commercial. The principle is simple, when there is a high demand without supply to complement, there will be an increase in pricing. 

Based on the demand for properties in Lekki, homes go for as high as 150 million naira. In other locations like Victoria Island, properties go for as high as a billion naira. Eventually, this will happen with other aspects of Lagos, like Epe. As major companies continue to invest in Epe, there will be more demand for residential and commercial properties. The best bet is to invest early in land in these areas and develop the property as time goes on. You can as well invest in luxury, our prime product ‘Willowbrook’ is available for as low as 3 million naira. Send us an email to get started.

4: Cultural and Social Trends

Lagos is best described as one of the most bustling cities in Nigeria. This is primarily because of the widespread urbanisation of the state. The increased urbanisation has made it the peak of luxury and as such, there is higher demand for residential and commercial properties. In addition to this, the youthful population of the state is very high. Young professionals and families migrate to Lagos in search of opportunities. Generally, the state is fast-paced and more suitable for a younger generation and as such, it is dominated by a younger generation. 

The cultural diversity of the state is also unique, it has a fusion of all the tribes in Nigeria. There is also a bloom of startups and tech companies, for example; Yabacon valley. All these social and cultural trends significantly affect the prices of real estate in Lagos. 

Lagos is definitely the hub for all things commercial and urbanisation in Nigeria. As discussed, this and many more have continued to cause an increase in the pricing of real estate investments in the state.