Recent data released by the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos branch, highlights a substantial upswing in land prices, activity, and interest within the Lagos property market.
Over the past five years, Ogudu led in upper-profile growth at 275%, closely followed by Banana Island at 225%, Ikoyi at 203%, and Victoria Island at 200%. Conversely, lower-profile locations, including Yaba, Ogba, Sangotedo, Ikeja, and Festac Town, showed growth ranging from 55% to 100%.
Dynamic Growth Trends
Using 2018 as the base year, the price growth index indicates diverse increases in property prices across various Lagos locations from 2019 to 2023.
Top Performers
Victoria Island, Ikoyi, and Banana Island consistently displayed substantial growth, with Ogudu and Abraham Adesanya experiencing remarkable increases, reaching up to 275.00% and 254.17%, respectively, by 2023.
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Year-on-Year Fluctuations: 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%), while some years experienced negative growth, such as 2019 (-5.94%) and 2022 (13.07%).
Land Price Appreciation Index Report
Released last week, the ‘Lagos Land Price Appreciation Index: Market Growth and Price Points’ report delves into the performance of land prices from 2018 to 2023. Focusing on 19 priority locations for residential, commercial, and industrial purposes, the report provides essential tools for measuring investment performance and aiding stakeholders in making informed decisions on land use and urban planning.
Factors Driving the Boom
Infrastructure Development: Ongoing projects such as road expansion, bridge construction, and the Lagos Light Rail System expansion contribute significantly to the real estate boom.
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Technology Integration: Adoption of technology, including online platforms for property listings and digital transactions, enhances the customer experience.
Challenges and Opportunities
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. The report predicts a continuation of this trend in the foreseeable future.
