2015 is set to be a turbulent and highly volatile year for stocks especially as falling oil prices continues to mount pressure on the Nigerian economy. However, I think it is high time we looked at other investment vehicles instead of being worried about where the Nigerian capital market is headed.
The real estate market in Nigeria is filled with lots of opportunities for profitability and the fact that real estate appreciates in value over time suggests that real estate might be a better alternative to stocks in 2015. The real estate market is made up of land, residential and commercial properties and this piece seeks to explore five of the emerging real estate markets in Nigeria.
Lagos: #1 Real Estate Emerging Market in Nigeria
Irrespective of whether you love Lagos for the opportunities that it presents or you disdain the city for its hustle and bustle, you cannot but agree with the fact that Lagos is still king in the Nigerian real estate market. Not many cities in Nigeria could boast of a vibrant real estate market where the average price of housing units for middle-income earners is between 25 million and 35 million Naira.
As at 2011, more than 14 million people called Lagos home to mark an impressive rate of population growth in a city that had 1.4 million inhabitants as at 1970. Interestingly, an additional 600,000 people settle in Lagos every year as Lagos continues on the path to becoming the seventh largest urban area in the world by 2020. Hence, the real estate market in Lagos has enticing short, medium and long-term prospects.
If you want to invest in the Lagos real estate market, you should consider going for residential and commercial properties in a neighborhood that can accommodate your investment budget. Places such as Magodo, Victoria Island, Lekki, and Ikeja are great real estate investment hubs for investors in the middle strata of the investing spectrum. If you are higher up on the investment strata, you might want to explore the possibilities for investing in the Eko Atlantic City or other waterside properties around the emerging metropolitan.
Note: Flipping land (buying vacant land, holding for a while and then selling) might be highly risky in Lagos, considering the fast rate of property development and the hustle you might have to undergo with the menace of "Omo Onile" and lengthy legal battles involving unscrupulous vendors
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