For instance, if a major manufacturing company establishes at a particular location, even if it is an outskirt area, it would increase activities in such location because of the following reasons:
- As a result of the manufactured products as well as increase in employment, which will help to boost the economy, they would be supported, to an extent, by the government to provide adequate accessibility as well as electricity. Therefore, roads would be created or made smoother, if already in existence, and electricity polls mounted.
- Staff of such company would want to reside close to the site.
- Retailers and distributors would want to establish stores close by.
- Other companies that supply the manufacturing company would also want to have outlets close by.
- Markets would open up.
- Commercial activities, such as banking would want to start up.
- Other manufacturing companies would be attraction to set up in such location, thereby increasing activities even more.
- Transportation activities would increase, etc.
This was a location people hardly went to, thereby had low value but by the time the above activities are in full gear, the need to be within such location increase which translates in the value of the land and properties accordingly.
Let’s take Lagos for an example, which has land value to be high in some areas and low in others due to the level of activities.
Ikoyi for instance, has the highest land value of about N180k – N280k/sqm, depending on the location, and the land value decreases the farther away you are from it. Though, other locations have activities that ascribe value such as Victoria Island with land value of N140k – N200k/sqm, Lekki Phase 1 with land value of N90k – N110k/sqm, Ikeja GRA with land value of N100k – N150k/sqm, Opebi / Allen (Ikeja) with land value N35k – N40k/sqm of etc.
Lekki was like an extension of Victoria Island which was of low value years back. Now Lekki is a city of its own with those who bought lands there being overwhelmed by the rate of increase in value of their lands. Some of them had 1,500% increase in the value of their land and more (This depends on how early the land was bought).
Other areas in Lagos have the potential of increasing in land value, depending on the level of activities, and one who is a wise Real Estate Investor would be able to identify such areas and purchase lands there.
Land investment is similar to Stock Investment because you buy when it’s very cheap and sell when it has increased in price but unlike stock, land always appreciates, as long as activities where the land is located increases. It requires patience because the turnover can take years but it reaps huge if invested wisely and at the right time.
Examples of promising areas are:
- Lekki Phase 2
- Ikorodu etc.
Prime Land Investments to buy into:
Lekki Phase 2 axis:
Ogombo – This is a location which is accessible through the road that leads to Abraham Adesanya first gate. The major attractions are tarred road and electricity amongst other.
Ibeju – This location has attractions like Mayfair Garden, Adiva Estate, Lakowe Golf Course, Greensprings school etc. As a reference, there is an Estate called The Habour Estates which is being developed by Realty Point Limited, a Real Estate Development Company with a portfolio of 8 Estates in different parts of Nigeria.
Lagos – Ibadan Expressway Axis:
Arepo – This location is that is at the boundary of Lagos and Ogun State and has an attraction like Magodo Gra 1 and 2, as well as Journalist Estates 1 and 2. As a reference, there is an estate called The Grenadines Homes, Citiview Estate which is being developed by Propertymart Real Estate Investment Limited, with estate located in different parts of Nigeria.
Mowe – This location is well known due to the presence of the Redeemed Christian Church of God (RCCG) camp. As reference, there is an estate called Golden Heritage Estate, being developed by New Creations Properties Limited and marketed by First Homes Shelter Solution
Igbesa – This location is popularly known due the attractions like Ogun State Free Trade Zone, Agbara Industrial & Residential Estates, Opic Estate, Multinational Companies (e.g Smithclime Beecham, Lever Brothers, Nestle, Vitamalt, e.t.c). As reference, there is an Estate called Prime Estate, Igbesa This Estate, as well, is being developed by Realty Point Limited.
Agbara – Within this location there are attractions like Ogun State/Chinese Free Trade Zone, Agbara Industrial & Residential Estates, Opic Estate, Multinational Companies (e.g Smithclime Beecham, Lever Brothers, Nestle, Vitamalt, e.t.c) Crawford University, Gateway Polytechnic, Covenant University, Ronik Polytechnic Permanent Site, Vitamalt Staff Co-operative Estate, etc. As reference, there is an estate called RoseBerry Estate, Haven of Comfort, also being developed by Realty Point Limited.
Ikorodu – This location is known for attractions like Federal Housing Estate,Ewu Elepe, Ikorodu, 4th mainland bridge etc. As reference, there is an estate called Broad Street Estate, being developed by Broad Street Properties Limited.