Fastest growing real estate regions that young people should consider investing in

Fastest growing real estate regions that young people should consider investing in

20th October, 2022

3 minutes, 13 seconds read

Nigeria’s real estate market, especially across her key commercial hubs, has seen phenomenal growth over the past 3 decades. Taking a case study of Lagos State, the prices of land in Lekki Phase 1, Victoria Island and Ikoyi for instance, have grown from ₦15,000 in 1994 to over ₦250m, ₦500m and ₦900m respectively as at September 2022. This represents an average of 2000% accumulated growth rate, and an average annual growth rate of 10% over the period under review. For people who took advantage of the opportunities at the time, it could have been a mix of sound investment judgement and definitely some luck. 

Today, most parts of Lagos, Abuja and Port Harcourt are now built up, with only a small fraction of the geographical land mass begging for development. With real estate prices rapidly going out of the reach of many middle to low-income earners in the country, this means that people need more foresight and judgement in considering the range of plausible growth regions that may emerge so as to tap into the opportunities that they present. In this note, we have profiled the top 3 locations in Nigeria, each in Lagos, Abuja and Port Harcourt that we believe has potential opportunities over the next decade, and why young people who are interested in real estate should consider investing in them. 

Epe, Lagos State

Epe sits on 965 km² in the northern outskirts of Lagos State, sharing borders with Ogun State to the north through Ijebu-Ode. Situated about 70 kilometres, 74 kilometres and 75 kilometres away from Lagos’ commercial/urban hubs – Lekki Phase 1, Victoria Island and Ikoyi respectively.

Key infrastructure projects in Epe include;

●        Completion of Africa’s largest food and logistics park, sponsored by the Lagos State government.

●        The ongoing rehabilitation of the Lekki-Epe Expressway that connects Lekki Phase 1 to Epe.

●        The ongoing construction of the Lekki Regional Road will connect Freedom Way in Lekki Phase 1 to Victorin Garden City.

●        The proposed Lekki Deep Sea Port will be located within the Lekki Free Zone, a few minutes from Epe.

●        The Completion of the 2,000 hectares of Alaro City mixed-use project that is also located within the Lekki Free Zone.

●        The completion of the Dangote Petroleum Refinery, which is expected to produce up to 650,000 barrels per day (BPD) and is reputed as Africa’s biggest oil refinery.

Outside a handful of projects like Isimi Lagos, Itunu and Alaro City where prices are significantly higher due to brand equity and infrastructure, land in Epe on average still sell between ₦1,000/sqm and ₦15,000/sqm depending on proximity to town. Although existing uses are still largely within the residential sub-sectors, we expect that completion of the aforementioned infrastructure projects in Epe will open up the region for other commercial and industrial uses and therefore drive prices up.

Lugbe, FCT Abuja

Lugbe sits along the Nnamdi Azikiwe International airport road in Abuja.  The approximately 50 square kilometres area has been developing over the past decade and has become. Lugbe is currently among the best sites in Abuja to buy land due to its advantageous location. Most of the regions in the FCT Abuja is very built up. Lugbe, however, still has plenty of open space despite its already sizable population. The region is located between the city’s core and the international airport.

This positions it close to Centenary City, a self-sustaining city that the Nigerian government intends to construct that is comparable to those in Dubai and Singapore. If you’re considering making an investment in Nigeria, Lugbe presents a fantastic chance. Based on the data that we are currently tracking on our website, land in Lugbe on average sells between ₦31,333/sqm and ₦38,326/sqm depending on proximity to town.

Ada George Road, Port Harcourt

Port Harcourt is not only Nigeria’s oil hub, it is also the fourth most populous city in Nigeria after Lagos, Kano, and Ibadan. One of the fastest-growing arteries in Port Harcourt that we are excited about is Ada George Road.

Most of Port Harcourt’s principal roadways are connected to Ada-George, allowing for smooth traffic movement. This facilitates company operations and has promoted real estate development in the past decade. Today, land in this location ranges between ₦1,522/sqm and ₦27,00/sqm depending on proximity to road infrastructure. 

We would love to hear from you. Please send your comments and feedback to research@buyletlive.com or follow us on Linkedin for more updates.

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