Places I Consider Good Choice For Real Estate Investment

image: escrime.org

2019 was a real estate year for me. I went from not having any single real estate investment to buying 3 (and my wife bought 1). I did a lot of research and visitation to the different places I saw potential (good returns) in. I even started keeping multi-year records of price trends by location and type of property across Nigeria. It opened my eyes to some reality you wouldn't come across if you get most of your information from real estate marketing folks or online adverts.

This post is to share where I consider are the good locations to own real estate properties in Lagos.

1. Already developed densely populated areas in Lagos (if you have the money).
Land and property prices (even rent) are always steadily increasing in Ikoyi, Ikeja, Victoria Island, Lekki, Yaba, Gbagada, Ilupeju, Ogudu and other developed well populated areas in Lagos. 

So if you have the money, owning real estate there is a good choice. You don't have to wait many years to realise the profit or steady income you want. You get the most creative options on how to squeeze returns out of your property: flipping, residential rent, commercial rent, partnering with a developer, event centre, car park, etc. 

The only barrier for many of us is the capital requirement.

2. Ibeju Lekki
It's easy to think that the hype is overhyped about Ibeju Lekki. Yes, there are places there that are not currently worth the prices they are sold for. There is a lot of misinformation that I recommend that anyone buying land or property there should go see it for himself before buying or he could be sold a chicken for the price of an eagle (and marketed to him as an eagle). Seeing is vital.

I went round the major places in Ibeju Lekki and also from my price trend analysis, of all the developing places in Lagos, it comes on top as the place with the most potential growth/return. While other towns are marketed mostly based on promises of government infrastructure and proximity to a university, Ibeju Lekki is not all promises but reality. There already are multi-billion naira investments going on there. And companies are already setting up there. Also, many big real estate companies have projects there which involve some intensive infrastructural spend and increases the overall value of the area. 

I went from being very skeptical of the potentials there and worried by the over-marketing I saw going there, to seeing the reality of what it is and where the good options are. I eventually bought a land inside Beechwood Estate. And its price has already gone up since I bought it less than a year ago.

3. Ikorodu
You can't hear the Lagos state government talk about the road constructions and infrastructural developments without mentioning Ikorodu way more than any other part of Lagos. 

I went round Ikorodu and there's no mistaking that Ikorodu is rising fast. It's a very large town and some areas show more promise and less traffic than others. 

I also bought (though still paying and not yet given physical allocation) a plot there.

4. Agbara
The land prices are depressed due to the bad Lagos Badagry road. And I strongly believe when the roads are fixed (which is a certain to happen thing), real estate prices will rise there and rent will go up too. There are a lot of companies there and the staff like to live close to the company. You will be amazed by how many manufacturing companies are there if you do not work in a field that puts you in constant contact with manufacturing companies.

I am yet to buy any land or property there but have it on my watchlist. 

5. Festac
The Apapa issue, road problem, security issue and traffic issue in Festac have depressed prices of real estate in the entire area, especially of the Festac Extension that is priced affordably. I believe that when these issues are resolved (and they would be), the price of land, property and even rent will shoot up.

I don't yet have immediate plans to buy there. Mainly due to my budget allocation to real estate investment. I only just have it on my watchlist.

6. Badagry
Badagry is a cultural site. On paper, you won't get what this connotes. But when you visit Badagry you will see what amazing influence being a cultural site can have on commercial and developmental interests. Badagry is a bubbling town. I couldn't believe my eyes when I went there. It was like the town is a secret. Like going through forests to Wakanda. That feeling of something this awesome is in somewhere like this.

It makes for a great country home location. A place to have a house for family get together/unwinding once a year. And you can also rent out to tourists or put up on Airbnb. You can be more creative with how you squeeze returns from your real estate property there than you would in a regular non-popular low cost town.

I also got a plot there (though still paying and no physical allocation yet).


Those are the places I have my minds on as good choices of where to acquire real estate.

Every month, I set aside some money to put in real estate. For my first land, I bought it outright but felt it would have been easier or better if I had been saving monthly towards it. Now I just seek out offers that allow monthly installment mode of paying. I also try to identify places of interest way ahead. Lastly, I have to make a compromise between buying land and developing the one I have bought. I try to switch between using my monthly real estate allocation for land purchase and house building. Just that house building is a massive money gobbler that I am still looking for a reasonable way to doing within my allocation constraint.