Lagos state happens to be the most populous city in Nigeria with an estimated population of over 21 million individuals. According to the Governor of Lagos state in one of his interviews, over 86 people come into Lagos every minute of the day totalling about 123,000 young people daily. In relation to its geographical area of about 356,861 hectares of which 21% are wetlands, there seems to be a huge difference.
Over the years, the issue of migration into Lagos state has been a major issue as the geometric increase in population is not commensurate with the provision of housing. The degree to which there is a shortage of housing in Lagos is humongous denoting a call for a solution. Although, this has always been an issue in Lagos state, there has been little or nothing done about it. The real estate industry had been left in the hands of very few as the investor were either unaware of the benefits of investing in properties or they just decided to turn a blind eye because of the uncertainties in the market.
Truth be told, the basis of the housing problem in Lagos – migration – seems to be the reason to invest in the real estate industry reason being that these immigrants need shelter. It does not seem like there would be a decline in the population growth soonest as it is said that Lagos by 2050 is expected to have doubled in population. You would agree that the real estate industry is one with great prospect.
Sangotedo, a growing community located around the Lekki Peninsula, Eti-Osa, seems to be a fertile ground for investment, giving investors the opportunity to create value and enjoy profit at a reasonable cost compared to surrounding areas like Lekki, Ajah and the likes. The real estate market, which is also subject to the law of demand and supply, has a higher mobility in prices. This is due to the demand for housing as against the provision of housing units. Ultimately, there is bound to be a competitive market alongside a price hike overtime. This means that this investment opportunity would not last forever.
Sangotedo’s growth, aside from being aided by the high influx of people into the state, would be aided by its cost-effectiveness. Currently, a plot of land in Lekki is worth about 100 million naira, in Ajah, about 40 million naira while Sangotedo sells for just about 15 million naira. Yet, all three areas provide almost the same value to house owners ranging from security, good view of the world, luxury, comfort, social amenities and many more.
Just the same way Lekki grew over the years, it is supposed that Sangotedo would bypass it in few years to come. Land is limited but the demand for it is unlimited. Apparently, this is an unparallel market that needs to be capitalized upon. Sangotedo is still a developing area no doubt with no population influx giving room for steady development. Owning a property today is no doubt investing for the future as, by 2020, it is said that Sangotedo would be overcrowded.