The recent real estate market trends show that apartments or flats in Nigeria are in high demand compared to other property types. Asides from the fact that they are in high demand, they are still money-making investments because the industry will continue to see heavy appreciation regardless of any fluctuation including economic recession, increasing interest rates e.t.c
As an investor, having an investment strategy in today’s Nigeria real estate market is one way to becoming a multi-millionaire.
With renter households growing at a faster rate than owner households, landlords are at an advantage in the rental market. With the current investment potential of real estate, you may want to take a good look at the benefits.
There are several benefits to owning a rental property, one of the main attractions being that it can provide a source of passive income. For some landlords, pride of ownership may be part of the allure. It can be rewarding to be able to confidently manage and make decisions concerning the property you own.
The key to success as a beginner rental property investor is learning how to assess the value of properties, choosing the right location, understanding market conditions, and most importantly, finding great tenants. If you meet these criteria, you can be better prepared to reap the benefits of owning rental property, especially owning multiple apartments
Here is a deep dive into why investing in multiple apartments is a good investment in Nigeria
- Reliable Stream of Income: Owning multiple apartments in strategic locations is a great way to generate capital in real estate. Renting out your properties guarantees you multiple streams of income on a monthly basis. This means you have more capital to obtain more apartments. Also, banks do not hesitate to lend real estate investors money. Why? Because there is guaranteed income from many sources.
- The Growing Population: Residential real estate will continue to thrive compared to commercial real estate because of its close ties with residential trends and demographics. The current population, the way we want to live, and where we want to live will be a more important factor shaping the future property markets than the short-term ups and downs of supply and demand, consumer sentiment, or interest rates. The current population of Nigeria is 213,537,161 as of Wednesday, December 15, 2021, based on Worldometer elaboration of the latest United Nations data. Nigeria 2020 population is estimated at 206,139,589 people at mid-year according to UN data. Nigeria population is equivalent to 2.64% of the total world population. Understanding this insight will aid you to construct a successful property investment portfolio. Most especially owning multiple apartments.
- Appreciation Value: This is another key reason why you need to consider apartment ownership. Real estate properties tend to rise in value annually at a steady rate. This makes it a great way to make money in the short-term while renting it out and in the long-term while it appreciates. By the time you sell the investment property, it would have dramatically risen in value especially if you hold on to it for a long time. Do not forget that location is an important factor to consider.
- Off the plan purchase: Another great reason why apartments make better investments is that there is an opportunity to purchase apartments off plan. This implies that you can buy the property before construction even initiates or while construction is ongoing, making the property far more affordable. In addition, you do not need to pay a mortgage until settlement arrives, which might be two or more years away, giving you greater time to save up a larger deposit which can be diverted to another land investment. A longer settlement time might also see your apartment grow in value.
- Pride and prestige of Ownership: The right property in the right location with the right residents and the right ownership mindset can produce a tremendous pride and prestige of ownership factor that is highest among all asset classes.
Hottest Places To Buy Apartments In Lagos, Nigeria
As a Nigerian in diaspora, having an insight into places to hottest places to buy apartments is key. This is why we will be sharing this information with you
- Banana Island: This location is reported to be arguably Nigeria’s most expensive neighborhood.
- Ikoyi: Also, one of the most affluent places in lagos state, located on the Norteast of Obalende and adjoins to the Lagos west. This location boasts of Ikoyi has some of the most opulent residential facilities in Nigeria, and is thought to have the most expensive real estate on the entire African continent, with the average new apartment selling for N230 million (around US$1 million). However, due to the limited available land, many of these are vertical apartment buildings.
- Lekki: A very notable place in Lagos that has attracted much oppulence. majority of the properties in this location is over-priced. Also, the standard of living here is not meant for the poor.
- Ikeja: The capital city of Lagos. It boasts of the busiest airport in Nigeria; Muritala Mohammed Airport and other exciting location. All these put together makes it a hotspot for investment.
- Ajah: This location is known to share proximity with Victoria Island and Lagos Island. The traffic in this area can be so discouraging and may want you to regret your decision of owning a property here but trust me, there are worst places in Lagos than this location.
- Magodo GRA: If you are looking to invest in apartment in Lagos Nigeria, this location is a great fit for you. Most especially if you want to invest on the mainland. It is a very residential with less commercial activity.
Does investing in apartments in strategic places in Nigeria make sense to you? Apart from the aforementioned reasons and locations to own apartments in Nigeria, there are a lot of motives that drive investors to invest in apartments over other asset classes. Different investments produce different results. Also, you don’t have to invest in multiple 2,3, or 4 bedroom apartments. One-bedroom apartments and studio apartments are also in high demand.
The question is, what results do you want?
If you’re thinking of investing in apartments, speak with Tranquility Realtors, they are a team of real estate professionals that have assisted clients home and abroad to own apartments in Lagos and Abuja.
Contact them on +234 811 045 217 to learn more.