The latest data from the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos branch, reveals a substantial upswing in land prices, activity, and interest within the Lagos property market. Over the past five years, Ogudu led the upper-profile growth at 275%, followed closely by Banana Island at 225%, Ikoyi at 203%, and Victoria Island at 200%. Conversely, the lower-profile locations, including Yaba, Ogba, Sangotedo, Ikeja, and Festac Town, showed growth ranging from 55% to 100%.
Using 2018 as the base year, the price growth index indicates significant and diverse increases in property prices across various Lagos locations from 2019 to 2023. Victoria Island, Ikoyi, and Banana Island consistently displayed substantial growth, while Ogudu and Abraham Adesanya experienced remarkable increases, reaching up to 275.00% and 254.17%, respectively, by 2023. Overall, this data underscores a dynamic and appreciating real estate market in Lagos during the specified period.
The year-on-year growth pattern reveals fluctuating rates over the five-year period, with notable increases in 2020 (27.87%) and 2023 (50.00%). Some years experienced negative growth, such as 2019 (-5.94%) and 2022 (13.07%), indicating a dynamic and changing landscape.
Released last week, the ‘Lagos Land Price Appreciation Index: Market Growth and Price Points’ report charts the performance of land prices from 2018 to 2023. Notable growth and development were observed in Victoria Island and Lekki Phase 1, reflecting strong demand for every available square meter.
The report focuses on transactions in selected property markets in Lagos State, covering 19 priority locations for residential, commercial, and industrial purposes. It provides key tools for measuring investment performance, aiding stakeholders in assessing profitability, tracking trends, and making informed decisions on land use and urban planning.
Lagos, a dynamic hub in Nigeria’s commercial landscape with a residential market catering to over 20 million people, faces challenges turned into opportunities for urban renewal. Despite obstacles, the market stands robust, promising substantial growth, driven by factors like ongoing infrastructure development and technology integration.
The Lagos real estate boom is attributed to factors such as a growing population, limited land availability, high demand for housing, and commercial developments. The report predicts a continuation of this trend in the foreseeable future.
Infrastructure development, including road expansion, bridge construction, and the Lagos Light Rail System expansion, serves as a significant driver for the real estate boom. Technology adoption, with online platforms for property listings and digital transactions, enhances the customer experience.
Despite challenges posed by the COVID-19 pandemic in 2020, Lagos’s real estate sector rebounded, emphasizing sustainability, affordability, and competing use patterns. However, the scarcity of development land parcels and competition for prime land continue to exert pressure on prices in prime areas of Lagos State. Chairman of NIESV Lagos branch, Gbenga Ismail, notes that land is responding to inflation, and demand is rising, characterizing Lagos as experiencing a real estate boom.
