Despite Inflation, Real Estate Opportunities Exist in Nigeria: Land-Banking and Smaller Residential Units Attractive

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Amid the impact of inflation on various sectors, including real estate, there are still opportunities for investors in certain areas. Despite rising costs of building materials and construction delays, real estate remains a viable investment. Land-banking, involving the purchase of land in anticipation of value appreciation, is highlighted as a favorable investment strategy. Areas like Ibeju Lekki, Epe, and Badagry in Lagos, experiencing new developments, are recommended for land-banking. Additionally, demand for smaller residential units, especially one-bedroom and two-bedroom apartments, is increasing.

Key Points:

  1. Land-Banking in Developing Areas:
    • Land-banking, the strategic acquisition of land for future value appreciation, is highlighted as a lucrative investment, particularly in areas experiencing ongoing developments. Ibeju Lekki, Epe, and Badagry in Lagos, with projects like the Dangote Refinery, Lekki Deep Seaport, and airport, offer opportunities for land-banking.
  2. High Demand for Smaller Residential Units:
    • Due to factors like affordability and changing preferences, demand for smaller residential units, including one-bedroom and two-bedroom apartments, is on the rise. Investors are advised to consider this segment of the real estate market.
  3. Focus on Build-to-Let Properties:
    • In the smaller residential unit segment, demand is higher for build-to-let or buy-to-let properties compared to properties intended for sale. Investors are positioning themselves in this market, emphasizing location and pricing as crucial factors.
  4. Affordable Home Ownership Opportunities:
    • Real estate firms such as RevolutionPlus, Adron Homes, Merit Abode, Richfield Limited, and Greenville Estate are offering affordable home ownership opportunities. Projects like RevolutionPlus’ Royal Haven Garden in Ofada and Richfield Residences in Ogun State provide options for interested home buyers.
  5. Specific Offerings by RevolutionPlus and Richfield:
    • RevolutionPlus offers 2-bedroom bungalows at Royal Haven Garden, Ofada, starting at N8.5 million, payable by installment. Richfield Property addresses the housing deficit in Ogun State with Richfield Residences, offering interest to partnering investors. The estate features fully detached 3-bedroom bungalows and 2-bedroom terraces.
  6. Opportunities for Savvy Investors:
    • Richfield Property invites savvy investors to partner and earn interest, emphasizing its development, Richfield Residences, located 20 minutes from the old Lagos Toll Gate. Buyers can own a plot of land in the estate with a minimum deposit of N1 million.

Despite challenges posed by inflation, the real estate sector in Nigeria continues to offer opportunities, especially in land-banking and the growing demand for smaller residential units. Investors looking for long-term appreciation and sustainable returns may find strategic investments in these segments rewarding.

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