Market Analysis: Comparative Market Analysis On The Value Of The Current Real Estate Market.

In the past few months, we have been exploring the megacity of Lagos; how to invest in the Lagos property market, why you should invest and where to invest. 

Lagos state is One of Nigeria’s largest cities and economic hubs with a diverse and dynamic real estate market. As Lagos continues to expand and evolve, it is important to understand the market values of properties across different neighbourhoods as a potential investor or homeowner. 

In this article, we will analyse the real estate markets in different areas of Lagos State, comparing the prices of land, houses, and apartments over the past five years to provide insights into their current values and trends and to help investors make informed decisions on where to invest according to their financial capabilities.

1. Epe

Epe is traditionally known for its fishing communities and rural landscapes but this area has undergone significant transformation over the past five years. With the Lagos State government’s focus on developing this area, Epe has become a hotspot for real estate investment.

In 2019, the price of land in Epe averaged around N200,000- ₦500,000 per plot. Today, Epe has had a series of infrastructural developments and an increased demand which has allowed prices to approximately ₦2 million to ₦5 million per plot. 

Apart from the price of land, a standard 3-bedroom bungalow priced at ₦1-2 million five years ago now costs around ₦5-10 million monthly. 

Houses in Epe offer investors versatile opportunities, particularly in the thriving Short Let market. Over the past year, Short Lets have gained popularity due to the rising demand for house parties, getaways, and short vacations. Typically, Short Let apartments rent between ₦50,000 and ₦120,000 per day, depending on the amenities provided. This high demand and favourable rental rates enable investors to achieve an early return on investment, making Epe an attractive option for long-term investment.

2. Lekki

Lekki has long been recognized as one of Lagos’s prime residential and commercial areas. Over the past five years, it has maintained its status as a top choice for high-net-worth individuals and businesses due to the growing demand for apartments and office spaces which makes Lekki a growing commercial hub. 

The price trend in Lekki has been on an upward trajectory since 2019. In 2018, a plot of land in Lekki Phase 1 was priced around ₦6 million. Today, the price has escalated to approximately ₦80 million per plot. If there’s anything price trends tell us; it is that the best time to buy a property was yesterday. If you didn’t buy yesterday, buy today and keep it, lands appreciate. 

Moving into houses, a 4-bedroom detached house in Lekki Phase 1 that cost around ₦80 million five years ago now sells for around ₦150 million. As an investor, Lekki is a good place to invest in a property due to the rising demand for luxury homes. 

Lekki continues to attract both residential and commercial investments due to its strategic location, modern infrastructure, and high living standards. The ongoing expansion of the Lekki Free Trade Zone and the Dangote Refinery are significant contributors to the Lekki’s  sustained growth

3. Ikeja

Welcome to Ikeja, the capital city of Lagos State. Ikeja has been known to be a highly commercial city with a mix of high-quality residential neighbourhoods. 

Ikeja has always been the dream of investors due to the high Returns on Investment and also due to the presence of the domestic and international airports. Ikeja has led the demand for hotels and hospitality establishments in Nigeria. 

In 2018, the price of land in Ikeja GRA was around ₦100 million per plot. Currently, prices have increased to about ₦150 million per plot. Also, a bedroom duplex that was sold at ₦150 million five years ago now costs approximately ₦220 million.

Ikeja’s blend of commercial activity and residential living makes it a prime location for real estate investment. The presence of major businesses, hotels, airports, government offices, and shopping centres like the Ikeja City Mall continues to drive demand and property values.

 4. Magodo

Magodo is known for its serene environment and gated communities and it has remained one of Lagos’s most prestigious residential areas. Market analysis has revealed a significant price increase over the past five years, with even stronger predictions for price trends in the next five years. The price of land in Magodo has increased from ₦8 million per plot in 2018 to ₦80 million today. 

Moving into a duplex that is well equipped and maintained, the price of a 4 bedroom duplex that cost ₦80 million five years ago now sells for around ₦130 million. For investors considering purchasing land or houses in Magodo, the area is renowned for its well-planned infrastructure and architecture. Magodo is also known for its tranquillity and security, attracting upper and middle-class residents.

Investors who buy properties in Magodo can rent them out for as high as N6 million per annum, making it an excellent location for a lucrative return on investment.

5. Yaba

Yaba, often referred to as the Silicon Valley of Lagos, is a thriving hub for tech startups and innovation. The area is home to a significant student population, with over one hundred thousand students due to the numerous higher institutions in the vicinity.

Over the last five years, Yaba has experienced substantial growth fueled by the influx of youth and tech startups. This growth has made Yaba one of the most affordable places in Lagos to buy land or a home, attracting early investors, including students who see the potential for long-term returns.

In 2018, the most expensive land in Yaba cost around ₦30 million. Today, the price has risen to approximately ₦60 million per plot and the most affordable cost is around N3 million.  The price to buy a 2-bedroom apartment in Yaba has increased from ₦20 million to ₦35 million today.

Yaba real estate investors have discovered an exceptional opportunity in this vibrant location. Properties purchased in Yaba can be rented out as student hostels, apartments, and tech hubs, catering to the area’s diverse population. The ongoing urban renewal projects and infrastructural improvements further enhance Yaba’s investment appeal, making it a prime location for both immediate and long-term returns.

6. Banana Island

Banana Island is synonymous with luxury and exclusivity. Known for its ultra-high-end properties, it remains one of the most expensive neighbourhoods in Lagos.

In 2018, a plot of land in Banana Island was priced at around ₦500 million. Today, prices have soared to approximately ₦800 million per plot. A luxury 5-bedroom mansion that cost ₦800 million five years ago now sells for over ₦1.2 billion.

Banana Island continues to set the benchmark for luxury living in Lagos. Its exclusivity, waterfront views, and world-class amenities attract the elite, making it a prime location for high-value real estate investment.

The Lagos real estate market offers a wide range of opportunities across different neighbourhoods, each with its unique appeal and investment potential. Whether you’re looking for high-end luxury, emerging markets with high growth potential, or established residential and commercial hubs, Lagos has something to offer every investor. Investing in real estate requires careful consideration of market trends, property values, and future development prospects. 

To help you further understand how and where to invest your money, send us a message, and we will guide you through the process of investing in real estate and maximising your returns. Let us help you make informed decisions, get the most out of your investment and maximise your returns because there is a property for everyone.