The rising cost of properties in Nigeria’s most populous city continues to form the core of major talking points in issues bordering real estate. Though there are claims that the high price of properties in Lagos state is as a result of the rapid developments and increased migration, how that has improved the lives of Lagosians remains a topic for another day.
According to a report released by RENTCafé in 2017, a property search website puts Lagos rent at $355 (N129, 575) per month while the household income is $625 (N228, 125), making the city the third least of world cities behind Manhattan, New York City and Mexico City that are highly unfavourable for renters.
Invariably, properties in Lagos rank as the most expensive in Nigeria and Africa at large, with Banana Island being the most expensive neighborhood to live in at the moment. Albeit, more is to come.
The argument that the high inflation rate of properties in the mega city is due to the fact that Lagos is the commercial nerve of the country with corresponding infrastructural development and high population growth would have been valid if the situation was same as some developed cities of the world. Though it has become obvious that there are huge plans for Lagos state which may be visible and non-visible but are property owners in the state not counting their chickens before they are hatched?
Truth be told, property owners in Lagos only take advantage of the rapidly growing population of the sprawling city and the over 2million housing deficit. What can be said in a situation where two properties in the same location with a 50,000-100,000 naira difference in rent price yet of the same size, aesthetics and possess the same facilities? The only difference is that the property with the highest rent price is closer to the major road than the other.
That notwithstanding, one thing explains the inhumane astronomical rise in prices of properties in the city of excellence, and it is the fact that the rate of demand is higher than supply.
With a landmass that stands at 999.6 sq.km, Lagos state is believed to have reached a population of about 23 million people in 2018 yet a major area of the state is still covered by an enormous body of water. Its increasing population is one of the reasons the Eko Atlantic City Project began in February, 2008 as part of plans to reclaim land
The fact that there are about 36 states in Nigeria with other high demanding cities like Calabar, Ibadan, Port Harcourt and Abuja still hasn’t stopped the mass movement to Lagos.
Another reason for the high pricing of properties in Lagos is the commercialization inherent in the state. Till date Lagos remains Africa’s market center. The city attracts foreign investors while some of these properties that are priced ridiculously high may be owned by foreigners. Lagos is a city of immense opportunities, hence it is an investor’s delight but is that enough reason for the current inflation rate of properties which makes it impossible for 95% of Nigerians to own a property of their own. I personally think property owners are only having a field day as usual
However, at LandLagos we believe that property is the right of every Nigerian, the only sure way to transfer wealth from one generation to another. We are poised to control and reverse the unfair and unrealistic inflation of property pricing by pegging the inflation rate of land owned thus enabling the average Nigerian worker to own property very affordably. This will make it impossible for surrounding property to over inflate over time.
Also, the Landlagos project allows for persons to own property they can transfer over to another buyer at a fixed return on capital of 30% for the first year, 25% for the second year and subsequently a yearly 15% increase in price. This means that property owned and sold over a specified period of time can give a higher return on capital than any traditional bank with a guaranteed asset that would only increase in value.
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Call 08154403000 for more details.