Lekki, Lagos is no doubt one of the best locations for real estate investment in Nigeria, if not the best. In fact, it is a sweet place to reside but when it comes to the prices of properties for sale or rent, it’s becoming a no-go area.
While houses in the Lekki environ get the highest bidders in terms of buying and selling – since the rich are skewed towards that side of Lagos – the present economic downturn in Nigeria is changing things.
Recently, a report by the Financial Derivatives Company Limited (FDC) stated that the number of vacant properties in the upper-class real estate neighbourhoods of Lekki, Victoria Island and Ikoyi has risen by 72 percent over the last 18 months. The report further stated that Lekki suburb, with the largest number of residential developments, recorded the highest vacancy rates.
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What this means is that builders or developers might suffer long-term illiquidity before they sell their properties and that’s if they are lucky to find buyers for their overpriced properties.
- It would become more economically sensible to rent or buy a house in Lagos mainland than in Lagos Island.
- More people will begin to relocate towards to the mainland gradually. In fact, at MoveMe, the bulk of services are done for clients moving from the Island to the mainland.
- Landlords on the mainland might begin to increase their house rent knowing that demand for houses on the mainland is on the rise.
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- Real estate developers on the Island may be forced to bring down the prices of their properties.
- It would become less profitable to build on the Island since houses would be sold at prices few margins above the cost of a building.
- Foreign investors and the Lagos State government investment in real estate would become more expedient
Now, I wonder if all these changes (and more which I believe you can help identify in the comment section below) is the change the Buhari government meant to offer us.