As investment interests continue to rise and considerations largely favour residential real estate, investors are encouraged to see the benefits of investing in the luxury segment of the market.
Though some investors have adopted a wait and see attitude to investment in real estate as a result of the slowdown in the economy and the crippling impact of the Covid-19 pandemic, analysts advise those with patient capital to make the move with a long term view of the market.
“Now is the time for people to participate in the real estate market. There are opportunities in Lagos as the largest city in the country. After this crisis, we are going to have a new approach to real estate,” Andrew Nevin, chief economist at PwC, said in Lagos.
Udo Okonjo, CEO, Fine and Country West Africa, agrees, pointing out that for those that are out to invest, there are some benefits that are derivable from luxury real estate which finds their way in highbrow locations such as Ikoyi and Victoria Island in Lagos or Asokoro and Maitama in Abuja.
The luxury real estate or housing market in any of these locations, according to her, has certain advantages and so any investor looking to invest in the market should know the benefits out there for him to reap.
But David Mba, a realtor and former marketing manager at a foremost real estate consultancy firm, warns, saying, “whether you are talking about Ikoyi, Victoria Island or Asokoro, the story is the same that these locations remain attractive for reasons other than returns on investment.”
Read Also: Worries as insecurity heightens, takes toll on real estate market
He explained that talking in terms of strengths, weakness, opportunities, and threats (SWOT), which guide investment, opportunities are more in these locations.
Okonjo cited Victoria Island where she outlined five major benefits luxury real estate offers investors. First among these is gain in property values and capital appreciation, pointing out that VI is a prime location at the nerve centre of Lagos upscale market, financial and business district.
“Properties located in this area will continue to reap economic gains and increase in value. More lucrative jobs, businesses, and recreational activities will continue to enter this marketplace. The effect is an increase in demand for office spaces, business outlets, and housing,” she said.
Compared to other investment assets like bonds and stocks, real estate has lower risk. Its prices will continue to increase through economic constraints long term because of its intrinsic value. In Victoria Island, for instance, luxury real estate is limited in supply due to a fixed amount of land.
Luxury properties attract high net worth individuals who can afford luxury lifestyles. Because of luxury living in prime locations, there is a strong demand for luxury homes.
“Victoria Island is one of the easiest places to liquidate your real estate asset so far as it is not overpriced above its market value. To get the best out of this real estate market, avail yourself of seasoned real estate professionals with great repute in the luxury real estate sector. They will get you the best cost-effective deals and the most feasible price for your assets,” Okonjo advised.
Another benefit for luxury real estate investors is safety and security, according to the Fine and Country boss. “Victoria Island is a secured environment which is an important factor for any investor. You are assured of the security and safety of your physical asset,” she assured.
She noted that the area is protected and has well-equipped hospitals and easy to navigate to make life enjoyable, adding that investing in Victoria Island, Lagos is certainly an insightful choice to keep one’s income running.
Okonjo disclosed that there is a limited supply of terrace homes in Victoria Island, making Dado Terrace a tasteful exclusive choice for investors interested in looking for great rental yields and capital gains to take advantage of the rise in demand for short-let luxury properties in central locations.
She added that better quality of life is beneficial as investors who invest wisely with in-depth knowledge will experience a standard lifestyle. “This diverse metropolitan area offers the best upscale commercial centre, live and work environment for professionals. It is the place to enjoy your life with lush activities,” she assured.
