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Six Solid Reasons Why You Need To Invest In Lagos City’s Real Estate in 2020
A population is undoubtedly a significant engine of development for the real estate industry, Lagos is easily Nigeria’s most populated state. The megacity has risen to about 22 million since today from just 1.4 million residents in 1970. With a population density of approximately 5000 people/km2, it’s one of Africa's most heavily inhabited cities. Projections have estimated that at least 86 people move every hour to Lagos, which is more than 2000 people every day and nearly a million people every year. That’s a constant flow of bright-eyed citizens looking for accommodation, purpose, and fulfillment. Emphasis on accommodation.
Abuja may have replaced Lagos as Nigeria's administrative seat, however; Lagos still holds the crown when we’re dealing with business. Right now, Africa's fifth-biggest economy and is planning to become the third biggest by the year 2020. The city’s also considered Africa's eighth-fastest-growing town in terms of population and isexpected to be the world’s third-largest by the year 2050 The numbers speak for themselves with Lagos being responsible for more than 53% of production jobs,generating 25% of the national GDP and consuming over 60% of the electricity of the country. Lagos is host to more than 2000 manufacturing businesses, 200 financial institutions, and is also host to Africa's biggest concentrations of small and medium-sized businesses. Let’s face it, Lagos is a powerhouse and is hometo some of the most ambitious people on the continent. (Source: World Population Review)
The vibrant economy of Lagos has resulted in a rapidly increasing population of the middle class with cash to invest in luxuries and proper housing and sometimes a blend of both. Despite the financial headwinds encountered by every other industry of the Nigerian economy, Lagos’ real estate sector still flourishes due to the powerful middle and high-income earners’ supply. With no sign of stopping, the city is becoming a juggernaut for real estate investment due to the presence of readily available buyers.
At this point in the time, the biggest reason why Lagos is a great location forinvestments is an almost ridiculous rate of return of investments on real estateproperties. The Lagos State Market Analysis presents Lagos as having some ofNigeria's largest estate prices. The Lagos estate industry remained buoyant and, insome cases, flourished even when the value of real estate in other states across the nation plummeted from the latest economic recession. A plot of land bought for 5million in Lekki (one of Lagos’ upper tier areas) in the year 2006 could go for close to.
Compared to other states in Nigeria, Lagos has the most stable political climate. Since the restoration of democracy in 1999, Lagos has been under the command of one of two major political parties in the country with limited deviations in their plans for their city. this is useful for the real estate market as initiatives and improvements are executed according to a specified blueprint without room for sporadic changes. It also implies that the altar of politics does not sacrifice significant initiatives that fuel development.
The rates of leasing in this city are rising rapidly and this stands to promote the factthat a lot of Lagos are opting to rent over buying out properties. This is largely due to the usually massive cost of homeownership, high costs of land, and staggering costs of building construction. Developers are aware of this direction the industry is headed as approximately 75% of landowners already have plans to develop rental properties due to their ability to quickly provide a return on their investments as well as a large supply of the populace available to rent the very second construction is complete.
Foluso Oyebanjo is a realtor, digital marketer and well-versed writer. His extensive experience in the world of marketing allows him to serve as a creative supervisor and assistant to clients from all walks of life and nationalities.He currently resides in Lagos, Nigeria where he works as a realtor and provides marketing solutions to developersand homeowners while providing real estate advice and consultation to anyone interested in investing in his home city.
MORE BY THIS AUTHORDreamscape is a Real Estate Company that focuses on marketing luxury properties in Nigeria
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