This article is focused on the top 4 emerging neighbourhoods for property investment in Lagos, highlighting up-and-coming neighbourhoods in Lagos, their growth potential and infrastructure development.
Before considering property investment in Lagos or the West African region of the world, it is very important to be conversant with the urban cities that the country has to offer, with the most notable mention being ‘Lagos’.
Lagos stands out as arguably the most vibrant, fast-growing urban city of the modern-day world on the African continent. With a seemingly increasing population at the city’s disposal, which largely facilitates the growing economy and commerce in the state via crucial sectors like finance, entertainment, technology and industry, it is very easy to crown Lagos as the economic capital of Nigerian society. So getting involved in property investment here is a perfect choice.
The city boasts a large variety of investment options ranging from housing, hotels and suites to real estate development and investments. It has lots of emerging neighbourhoods for property investment, but for this article, we will be focusing on 4 major areas.
As the front runner for the most lucrative and fast-growing city in Africa, it is important to note that Lagos has now become an established hotspot for major real estate development and investment, with the main focus set on urbanisation.
This means for most investors who seek to capitalise on a thriving market for real estate with guaranteed strong rental rates, free from harsh economic policies and systems, Lagos is the ideal location for such an investment. The city offers huge growth potential, with a guarantee of high returns under a thriving urbanised economy, making it a very suitable prospect for local and even foreign investors.
Though it can be very easy to get lost in the fantasy of Lagos investment being only about acquiring lands and properties, one needs to prioritize the eventual growth, development and prosperity of one’s investment in the long-term, hence the the need for this blog post which explores the major emerging neighbourhoods within Lagos that holds great promise and potentials in the investment market.
Emerging Neighbourhoods for Property Investment in Lagos.
1. Epe
Epe is a hotspot for property investment in Lagos. The once quiet, rural town located in the eastern part of Lagos is noticeably shedding its previous identity as a small, rural town. The new, recent urban allure of Epe town can be attributed to the Akinwunmi Ambode government, which implemented major infrastructure projects like the major expansion road projects that sparked major interest in the area.
Epe town has become a go-to spot for most property investors due to its rather low costs of land and properties compared to other parts within the state. Coupled with this fact is also the presence of a serene environment with a natural tranquillity, with a very high rate of potential residential and commercial activities.
In addition to this, the strategic location of Epe town beside the neighbouring Ogun state has positioned the area as a good geographic intersection for easy transportation and trade. This important geographic factor, coupled with the town’s proximity to major economic hubs, makes it an ideal choice for most investors who seek urban migration and demand.
It is very easy to note that the Epe region is still on track and has not fully actualised urbanisation, hence presenting a huge opportunity for investors to capitalise and cash out of the region’s growth potential. Who knows, in the few years to come, Epe might be the next Lekki, and early investors who capitalise now might secure significant rewards in the long run as development continues.
Epe town’s recent emergence in the Lagos real estate market charts for the best regions for long-term real estate investment is facilitated by some ongoing infrastructural projects.
Some of these are:
1. Epe Marina Project – The Epe Marina Project is leveraging the aquatic abundance of the region to establish hubs for waterfront recreational activities. The project includes plans for a marina, restaurants, a hotel, etc. It is almost guaranteed that such a project is sure to drive the residential and commercial development within the area, thereby serving potential investors.
2. Road expansion projects – the government has recently upgraded plans to improve the Epe-lekki Expressway. This will facilitate transportation by enhancing connectivity within the minimal possible travel time. As we know, that good transport network favours increased economic and residential activity, which will be beneficial to real estate development
3. Airport project – The proposed Lekki-Epe international airport will help to further boost Epe’s connectivity and accessibility. This will drive economic growth and development, improving the area’s appeal for real estate investment in the area
2. Ibeju-lekki
Another notable suburb to look out for when it comes to property investment in Lagos is Ibeju-Lekki which is on the eastern part of Lagos. It is a rapidly developing centre for major investments and has garnered significant attention in these recent years.
A major reason for this points out to the strategic location of ibeju-lekki around the Lekki-Epe axis, within close proximity to the coastline. Some parts of the ibeju-lekki even extend along the coast if the Atlantic ocean, setting it up as strategic location for future development. The ibeju-lekki boasts of a vast expanse of undeveloped land which is sure to attract real estate investment potentials.
Another notable mention for real estate investment is that the Ibeju-Lekki area is very rich with natural resources such as sand, clay and even gravel, which are all essentials for building constructions. The presence of these abundant resources makes it cheaper to build in the Ibeju-Lekki area compared to other regions within Lagos state.
With the strategic location of the Ibeju-Lekki area, abundance of natural resources and rapid development, it shouldn’t come as a shock that in recent years that the area has become a forefront for major property investment in the state.
The rapid development of industries and businesses in the area has contributed to the high property demand in the area for residential and commercial purposes. This has positioned Ibeju-Lekki as a prime location for many valuable investors.
In addition to the aforementioned, another reason why investment in the Ibeju-Lekki is a rather smart move is due to the area’s transformation by key infrastructural projects implemented by the state government.
The state government has highlighted the Ibeju-Lekki area as a key development area within the state and has commenced several projects to transform the area into a well-developed residential and commercial hub. These developments have sparked immense interest from both local and foreign investors who seek to capitalise on developed regions for their investments.
Some of these infrastructural projects are;
1. The Lekki Free Trade Zone
2. The proposed Lekki deep-sea port
3. The Dangote refinery
4. The ongoing development of the Lekki-Epe expressway
3. Sangotedo
Sangotedo, which is situated very close to Ajah, is experiencing a lot of real estate action these days. The driving factor being as a result of the influx of increasing commercial and residential development in the area.
Though recent research has highlighted the fact that despite the current attention that the area is receiving, the real estate market in the area still has more potential to increase in the coming years.
Ranging from residential estates to even small commercial spaces, the Sangotedo area is developing into a suitable choice for real estate investors who seek to capitalise on a well-balanced investment strategy, especially for those seeking mid-term gains.
The options of affordable housing options, coupled with the region’s proximity to the more luxurious areas of Lekki and Ajah, have positioned the area as the ideal choice for many investors. Recent reports from the Guardian newspaper buttress this fact, as it highlights that the demand for houses in Sangotedo has skyrocketed, steadily increasing due to the convenience of its strategic location and the potential of high returns on investment.
The Sangotedo area is an up-and-coming area in terms of infrastructure development, but the state government is implementing some new infrastructure and amenities to augment and improve the life quality of the residents. This infrastructural growth has not only improved through lives and businesses in the area but also helped to attract new businesses and migrants who seek a vibrant and eco-friendly community.
Some of these infrastructures include quality schools, malls, hospitals, and even shopping centres. A major attraction within the Sangotedo area is the ShopRite supermarket, which draws in crowds from nearby areas and communities.
4. Yaba
Yaba, also tagged as the ‘Silicon Valley of Nigeria’, has always been an innovative hub for technology, but with core factors like convenient central geolocation and a thriving environment in mind, the region has been attracting more and more real estate investors in recent times.
With the prevalence of young professionals, students and entrepreneurs in the area, there is a surge in the demand for real estate by the aforementioned who require affordable residential and commercial spaces.
Armed with top educational institutions and tech businesses, Yaba has transformed into a thriving modern ecosystem serving as the ideal location for many young professionals who seek urban life.
Being an urban hub within the heart of Lagos state, the high rental rates and demands of this area make it an attractive and highly profitable location for many real estate investors, particularly the buy-to-let investors who desire to generate quick, profitable returns.
One should put in mind that though the Yaba area is a very urbanised region, there is still yet promising potential for new investors who share the ideology of a long term vision for their investment as there is a very high chance of capital appreciation for the area as more companies and businesses set into the area.
This will only make the demand for housing options grow more and more. Hence, we can but conclude that Yaba would be a region to watch out for this year.
Other areas to look out for property investment in Lagos include:
5. Ajah
6. Ikoyi
7. Lekki
8. Badagry and so much more.