Lagos is one of Africa’s megacities and Nigeria’s most populous city. With a population of an estimated 15,946,000, and a land area of 1171 kilometer square which translates to at least 13,664 people per square kilometer.
Nigeria’s property market is a fierce field; with Lagos City as one of the major fronts.
The majority of Lagosians and residents of Lagos do not possess property within the city. As the property market in Lagos is one of the most expensive in the world. This has pushed the majority of the populace who choose to remain in the city into renting.
Apartment renting in Lagos isn’t cheap either. As ever-rising costs of rent within the city trouble residents of the city -the majority of which are tenants.
More so, tenants aren’t the only ones complaining about rising costs. Homeowners in Lagos cite the overall rise in living costs as one of the major reasons why the rents for their properties are rising.
Nevertheless, there remains a demand for housing in Lagos. A demand that seems to be changing the landscape of the city.
Property renting in Lagos goes beyond just renting houses. Renting shops in Lagos, renting for warehouses, offices and just renting land spaces are part of the opportunities the Lagos renting market offers.
The Lagos property market with all its characteristics remains one of the best property investment targets in Nigeria. Allow us to divulge to you why it is still this way;
The Mega City Status
What makes a region a mega city is its population. And 15 million plus individuals puts Lagos firmly within the tag.
Lagos with its current population size still has an annual urban growth of 3.63% from 2022 according to this year’s numbers, despite the numbers of the previous year of 3.54% from 2021.
This just brings into figure the volume of people that move into the city. People who need living quarters in one form or the other.
The economic power of the city will keep attracting more parties into the region, either for business or personal reasons. And these people will require space; space to do their business, or space to live from within the city.
This provides a seamless and ever-revolving customer base in the real estate market -listed properties rarely ever stay long on the market due to this.
The Long run game
Home Listing properties for rent is one of the most frequented means property owners in Lagos generate cash. As they understand, real estate investments are for the long run.
Property values in Lagos Nigeria appreciate fast, a minimum of 15% per annum according to businessday Nigeria.
Land always appreciates in its value; And one of the best ways to put land to use as it appreciates for future sale or any other endeavor is by rent.
Renting in Lagos is most times done on an annual contract, this gives property owners time and substantial chunks of cash inflow for them while they see their property investments appreciating.
Policies to support both Homeowners and Tenants.
The Lagos state government has recognized the housing challenge its city and residents face. From a shortage of housing units to the high cost of available living spaces.
Such factors have influenced policymakers into finding and implementing lasting solutions to prevent a housing crisis in the city. Policies to encourage public-private partnership in the Lagos real estate sector -from large-scale estate developments to medium multi-storey blocks of flats.
The government understands that it might not be able to solve the housing issue quickly enough on its own accord, and is therefore encouraging parties to enter its property market.
The tents and homeowners with a smaller portfolio aren’t left out of favor when policies are made regarding the real estate sector in Lagos.
In an announcement telling the world; the special advisor on housing -with the governor’s consent, revealed plans by the Lagos state government to begin a monthly rental payment scheme to support its residents.
In short, this plan was developed to support tenants who might have other needs for the large sums required to pay rent annually, by providing them with a chance to make monthly payments on rent.
While Home and apartment owners are still given their full annual remunerations. This policy has been praised as it supports both homeowners looking to make gains for listing their apartments for rent and tenants a chance to spread payment and feel its effects less.
Construction strategies are changing
A while ago Lagos was a city dominated by bungalows and single stories at most. But that is changing rapidly.
The Lagos real estate sector allows for creativity in construction, as long as standards and regulations are met.
A few years back, a man with 300 sqm of land might have built a large bungalow with a large parking space -a story building at most. However, in recent times landowners have gotten more creative.
Investors in Nigeria’s property market work with skilled professionals in the real estate sector, using the minimum land space to the maximum. Now, a similar piece of land of the same 300 sqm can have a multi-story apartment for rent built on it with shops or a rental space on the ground floor.
As not every search for available property isn’t always for living. Landowners are changing their building strategies in an attempt to maximize their properties for both people looking for residential apartments for rent and spaces for businesses.
Property acquisition isn’t cheap in Nigeria, and Lagos is no exception. However, when you do; renting is a lucrative endeavor. Apartments for rent, shops for rent, land leasing and even warehousing to rent are great ways to use your land.
With Lagos being the economic center that it is, there will always be a need for any available space. Even corporate parties require spacing for offices; land owners are also developing their properties to supply this demand and many others.
The property market available for renting in Lagos is always in a constant buzz, with the ever-repeating demand almost ensuring properties are not on the market for long.
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