Top cities outside Lagos to invest in real estate in Nigeria.
Nigeria has a variety of cities with various strengths, including 36 states and the Federal Capital Territory. They could be classified based on different strengths ranging from agriculture to trade, manufacturing etc.
While the attraction that comes with Lagos State is evident even to the blind, there still remains some other states that present very great opportunities for real estate investors.
In today’s post, we will be looking at some of those cities and the kind of opportunities they present to a real estate investor.
Thanks to projects like the Lagos-Ibadan Standard Gauge Railway, attention has turned massively in the last few years to Ibadan. Investors are now beginning to take interest in the potential that Ibadan presents.
To support the growth of the economy in the state, the Oyo state government has designed a package of structured incentives to attract investors in priority industries for development, namely agriculture and agro-industrial processing, manufacturing, transport infrastructure, culture and tourism, solid minerals and power.
Given that the cost of land in Lagos State has risen sharply in the last decade, and that quality sites with good access and support infrastructure are limited in availability, Oyo State is becoming ever more attractive in this respect. The Oyo State Ministry of Trade, Investment and Cooperatives has stated that it is prepared to offer discounts of more than 80% on the cost of land for non-PPP investments. The ministry is also offering support infrastructure, such as access roads, for larger projects, thereby addressing some of the key challenges to doing business in the region
This has made conducting business in Oyo state relatively simple, as well as increased the state’s real estate development potential.
Abuja has always been a paradise for real estate investors, as it is the only city in Nigeria that can match Lagos state in terms of wealthy individuals, expensive properties, and, to some extent, the intriguing lifestyle.
Due to the security concerns in the north east, Abuja has seen a steady growth in population, driving up demand for rental apartments. This demand has resulted in extremely expensive rentals in all of Abuja’s districts. In Abuja, the average yield on rental properties is presently 8%.
Despite the high cost of living in Abuja, the commercial hub keeps growing, with numerous enterprises, start-ups, and multinationals witnessing steady development in recent years. As a result, demand for investment buildings such as offices, retail, and industrial assets has remained steady. As a result, for quite some time, capital gains on both commercial and residential properties have been on the rise. It is not uncommon for a commercial property to grow at a rate of 5% every year.
Port Harcourt is known as the Garden City, the Pearl of the Niger Delta, and the unrestrained seat of black gold. While it is vital to note that the city is Nigeria’s oil capital and the country’s third most developed metropolis after Lagos and Abuja, it is also crucial to note that it is one of the country’s most developed property markets. Many international firms’ operations have made real estate developments appealing not just to top Nigerian business executives, but also to Expatriate Workers who pay a premium for most of the city’s luxury constructions.
With an IGR of about 117 Billion naira only second to Lagos State, Port Harcourt houses some of the greatest potentials in real estate. However, with the main city being already choked up, investors are looking to cashout in several areas including the Greater Port-Harcourt Area, Peter Odili road, and Ada-George road.
Despite this, Ibeju Lekki still has the best potential for real estate investors to make more money. It’s no wonder that investors are flocking to Ibeju Lekki, with over $30 billion in investments and the potential to generate roughly $25 billion in trade volume by 2030. Why not get in touch with us right now to begin the process of acquiring land in Ibeju Lekki?