‘As the popular saying goes, if wishes were horses even beggars would ride’.
This saying might not sound inclusive or applicable to you until we get to the business of the day. A lot of people living in Lagos are tenants, however, this unspecified great deal of people, about 90% of them are yearning to be given the opportunity at least once, to be a property owner in Lagos. You might be wondering why.
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Lagos the most vibrant economic and cultural hub of Nigeria, is a city bubbling with life and opportunities. With its beautiful coastlines, and thriving real estate market, it is one of the most attractive destinations for investors and homebuyer alike. However, one unavoidable aspect of the Lagos property market is its high price tag. In this blog post, we would look into the underlying factors contributing to the soaring cost of buying properties in Lagos and why.
1. Urbanization and Population Growth: As one of Africa’s fastest-growing cities, Lagos faces the constant challenge of accommodating its ever-expanding population. The steady flow of people seeking better economic prospects and improved living standards has increased demand for residential and commercial spaces. The limited availability of land in the city center and surrounding areas has intensified competition, thereby driving property prices upwards.
2. Infrastructure Development: While Lagos thrives as an economic powerhouse, the pace of infrastructure development struggles to keep up with the rapidly growing urban population. Insufficient road networks, inadequate public transportation, and irregular power supply are some of the issues plaguing the city. Properties in well-developed or high-demand areas command a premium price to compensate for the lack of amenities.
3. Land Tenure System: The land tenure system in Lagos, influenced by traditional customs and colonial-era regulations, is a complex web of ownership rights and claims. The absence of a clear and efficient land registration process often leads to disputes and uncertainty regarding property ownership. This ambiguity can deter investors, leading to fewer available properties and driving up the prices of those that are available.
4. High Cost of Construction: The cost of constructing buildings in Lagos is notably high due to several factors, including import duties on construction materials, complex regulatory requirements, and scarcity of skilled labor. These expenses get passed on to potential buyers, further contributing to inflated property prices.
Conclusion
Buying properties in Lagos can truly be tasking, especially for those on a tight budget. The city’s expensive real estate market can be attributed to a myriad of factors, including urbanization, population growth, inadequate infrastructure, land tenure complexities, high construction costs, security concerns, and speculative investment practices. However, Lagos is still one of the fastest-growing cities in Lagos Despite the huge cost, the Irresistibility of Lagos as a city of opportunity and vibrant living continues to attract individuals willing to invest in their dreams.
Content.credit: Kabashey.Kontent
