Buying a landed property in the Lekki-free zone (LFZ) could be as rewarding as it is enticing.
LFZ is situated in the south-east of Lagos has a planned area of 30 Km2. It borders Lekki Lagoon in the north and faces the Atlantic in the south with a beautiful coastal line of 5km stretch. As one of the fastest growing areas in Nigeria, LFZ is gradually transiting a modern satellite township in Lagos metropolis.
Lekki has become a commercial hub, residential area and tourist attraction centre in Lagos, thus making it in hot demand in relation to real estate.
There are diverse investment opportunities in the area ranging from manufacturing, heavy industries, oil & gas, real estate, tourism and infrastructure development to a mention a few.
In the real estate, opportunities abound in the three segments of the market – residential, commercial and industrial.
A large number of real estate companies own properties in LFZ considering the enviable economic prospects of the environment.
The value of a property is highly influenced by its location. Having property in a place like LFZ is akin to owning a goldmine as the purchase value may be high but the returns thereafter is thrilling considering the appreciative value of the property in the environment.
For instance, Gracias commercial affords investors opportunity to multiply wealth and raise their investment portfolio. The property is strategically in a good location for commercial purpose such as hotel, office and mall, with an asking (promo) price of N6.4 million as at February 2019. A year ago, the property worth N5 million and now it has appreciated to N6.4 million, implying a 28 percent increase in value. It therefore means that a person buying for N6.4 million today can sell for N8 million (projection) in near terms, make gain of N2.4 million since land appreciate in value overtime.
Looking at an another example at Palms resorts, a well-laid out serviced estate in proximity to Dangote residential estate in Free trade zone road in Ibeju-Lekki Lagos. As at last Friday, a piece of land there cost N5 million, considering the capital appreciative value of the area, the land may worth N6-N7 million, implying that a person that bought at N5 million and dispose much higher to realize his gains.
Another reason why investors can consider investing in LFZ is the security of investment. Land is immobile and less risky compared to assets like equities and bonds. Considering the fact that the economy is gradually moving out of recession, putting money in a secure venture like buying a land at LFZ is a smart move because if the economy performs better, value appreciation on property in the area would spike – interesting news for astute investors.
The benefits of investing in LFZ also extend to local and foreign industrialists and those vying infrastructure developments. The environment is a safe hub for foreign investment. The zone does not only target Nigerian market but has easy access to neighbouring countries in West and Central Africa.
The incentives for investors are much appealing. For instance, investors are permitted to sell 100 percent of manufactured, assembled or imported goods into the domestic Nigerian market and when selling, the amount of import duty on goods manufactured is computed on the basis of the value of raw material or components used in assembly, not on finished products.
Lastly, another strategic advantage is swift returns on sale. There is nothing more cumbersome for an investor than to have money tied in a business ventures for years. This is a good reason to consider owning property in LFZ as there are high demands for investment in the location; hence money is not tied down for a long period of time. With swift returns on sale in the area, investors can reinvest and make more money.