Lagos is not the capital of Nigeria (it is Abuja). But it is still the most important city in this African country of 150 million people. Lagos still remains the commercial capital of Nigeria with all major industries operating from there. Nearly 15 million people live in this city where real estate prices are touching the sky. Here are 5 facts about real estate in Lagos that will amaze you.
HIGHER RENT THAN LOS ANGELES AND NYC
Rent for a 3 bedroom apartment in some areas in Lagos can go up to $75000 per annum. As if this is not enough, some landlords even ask for 2 years’ rent upfront at the time of moving in.
IT IS VERY COSTLY TO BUILD A HOME IN LAGOS
Buying a piece of land and constructing a house is a very costly affair in Lagos. Underdeveloped infrastructure in terms of electricity and drinking water makes it almost 300% more expensive than the U.S. This is a fact that not many people believe. But they’ll learn it the hard way when they try to build a house for themselves in Lagos.
ACUTE SHORTAGE OF HOUSES
Lagos is the commercial capital inspiring people from villages to migrate here in search of employment. The population of Lagos is swelling with nearly a quarter of a million people joining it every year. It is natural for these people to find it difficult to own or rent homes in Lagos. NMRC, the state housing finance company, provided finance to help in the construction of 10000 homes whereas it received 66000 applications last year. This reflects the acute shortage of housing being faced by people of Lagos.
PRICES TOUCHING THE ROOF
Lagos remains the costliest city in Nigeria. The cost of a 3-4 bedroom house in Lagos is around NGN75 million to buy depending on the location which comes to about $239location which comes to about $239000.
DEMAND FOR HOMES IS DECLINING
This is really a strange fact about Lagos real estate. Even though there is a crisis of housing for people in Lagos, demand for homes is shrinking. This is reflected in declining property prices with few takers. To spur the demand, some steps were taken by the government which includes cut in consent fees (from 6% to 1.5%) and decrease in capital gains tax rate from 2% to 0.5%.
The biggest cities on the planet tend to be the ones most in need of an effective security system. One feature of the modern integrated city-wide security system is the Closed-Circuit Television, or CCTV, which enables people to monitor activities from remote locations using installed video cameras. The city of Lagos will be getting its own video surveillance system starting next month if all goes to plan. The Lagos State government has indicated that it wants to boost its capacity to keep...
Anybody that has had dealings in the real estate sector in Nigeria, particularly in the urban areas like Lagos and its environs will know the numerous dirt and risks associated with land acquisition and development. Prominent among the hazards that bewitch the process of land acquisition and ownership in Nigeria is the menace of the ‘omo onile’ (as it is popularly called) which literally means ‘sons of the landowners’; the ‘ajagungbale’ (meaning one that ‘fights war to obtain...
PROHIBITION OF DEMAND FOR FEE IN REGARD TO CONSTRUCTION Section 11 of the Law is by far the most popular provision of the Law. Anybody who has done construction work in Lagos and its environs has one tale or the other to tell about the notorious omo onile. They are basically hoodlums who lurk around construction areas, charge developers for every tipper of sand/cement/gravel brought to site; then, at various stages of building, they throw in more obstacles and demand payment of huge sums...
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