Why prices of real estate is rising in Lagos —Analysts

Analysts from the Nigerian Institution of Estate Surveyors and Valuers (NIESV), have said that Lagos, being the economic powerhouse of Nigeria, has been experiencing a real estate boom like never before.

With its growing population, rapid urbanisation, and flourishing economy, the report from the analysts stated  that the city has become a hot-bed of real estate activity.

According to them, understanding the prevailing trends in Lagos real estate is crucial for both investors and homebuyers.

They explained the increasing land prices in Lagos were driven by a growing population, limited land availability and high demand for housing and commercial developments.

“This trend is expected to continue in the foreseeable future,”  the analysts said.

They noted that one of the significant drivers of the Lagos real estate boom was the ongoing infrastructure development, pointing out that government has been investing heavily in transportation networks, including road expansion projects. the construction of bridges and the expansion of the Lagos Light Rail System.

Besides, they identified the fact that the real estate industry in Lagos is embracing technology to streamline processes and enhance the customer experience.

“Online platforms for property listings, virtual tours, and digital transactions have gained traction, making it easier for buyers and investors to explore options and in making informed decisions,” they said.

Lagos’ real estate market, a dynamic hub in Nigeria’s commercial landscape, caters to a 20 million plus population. Boasting of a 75 percent residential market blending traditional and modern structures,  experts said the sector has turned challenges (infrastructure, regulations) into opportunities for urban renewal.

The analysts pointed out that recent trends have heightened demand for high-end properties, smart homes and sustainable designs.

“Despite obstacles, the market stands robust, promising substantial growth. Navigating this landscape effectively requires a profound understanding of its distinctive dynamics and market support transactions with credible data support,” they said.

The report also provided the key tools for measuring the investment performance of the Lagos Property Market, by observing the developments, transactions, trends and performance analysis of investment in major locations Lagos Land Market.

“This will assist stakeholders in assessing the investment profitability, tracking market trends, and providing credible information to make informed land-use and urban planning decisions,” they said

Over the period of five years, the report said that Victoria Island and Lekki Phase 1 experienced substantial growth and development, showcasing strong demand for every available one square metre (sqm).

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