On an incremental basis, Lekki, an upscale location in Lagos, is gaining recognition and acceptance as a destination for investment and homeownership. It is said to be the fastest growing corridor in Lagos.
For good reasons, it has become an attractive location for investment in real estate in general and apartment properties in particular. Demand for apartments or flats is higher in this location than any other place on the island areas of Lagos.
BusinessDay findings show that 15.7 percent of people looking for houses to rent flock to that area, while as high as 52.7 percent of them are looking for small size apartments, mostly two-bedroom.
Recent Google Trend searches by Nigeria Property Centre, supports our findings, showing that, for the month of May, only 7 percent of those looking for houses to rent in that axis went to Ajah; 4.5 percent to Ikeja; 3.1 percent went to Ikoyi, while 2.6 percent favoured Victoria Island.
The searches also show that whereas houses for rent corner 52.7 percent of the housing market, those for sale represent 33.4 percent; short let apartments enjoy only 3.4 percent of the market while joint venture has just 0.3 percent market share.
For yield-hungry investors with an appetite for investing in rental properties, Lekki is a good location. “Lekki is a prime location at the nerve centre of Lagos upscale market, financial and business district. Properties located in this area of Lagos will continue to reap economic gains and increase in value,” Emmanuel Joseph, at Purple Living, said.
Joseph noted that more lucrative jobs, businesses and recreational activities will continue to enter this market place, adding that the effect of this is an increase in demand for office spaces, business outlets and demand for housing. “This will continue and will appreciate the value of your property which will grow faster compared to less attractive neighbourhoods of Lagos,” he said.
He described Lekki as an established lucrative real estate market, explaining that the area has a good track record for selling and buying property. According to him, demand for property is high and increasing which is why investing in Lekki is a wise decision.
“Because of luxury living in this prime area, your property will attract high net worth individuals that can afford a luxury lifestyle. There is a strong demand for a luxury home in this highbrow metropolis,” he said.
Continuing, he said, “Lekki is one of the easiest places to liquidate your real estate asset so long 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 a reputation in the real estate sector.”
As one of the major cities in Nigeria, Lagos is an active rental market and, according to the searches, the state leads the other three top states where many people are looking for houses to rent. These are Rivers, Ogun and Abuja, the federal capital territory.
As of May this year, whereas 60.9 percent of renters favoured Lagos, 19 percent, 2.4 percent and 1.9 percent favoured Abuja, Rivers and Ogun respectively. This corroborates an earlier report by Pison Housing Company which said that about 80 percent of the estimated 20 million Lagos population live in rented accommodation.
Roland Igbinoba, president/CEO of the company, added that 80 percent of the residents spent about 50 percent of their income on house rent.