WHY HOUSES IN LAGOS ARE GETTING MORE EXPENSIVE

Houses in Lagos are getting more expensive, price of some Lagos houses will shock you, so these are some of the reasons there are so many expensive houses in Lagos.
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1- Cost of Land
With the huge population of people in Lagos, and the constant immigration of hundreds of people into Lagos daily, there are more people in Lagos than the land space available
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As cost of land in Lagos keep going up, houses in Lagos will also continue to rise and houses will get more expensive both to buy and to let.
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2 - High demand
The demand for houses in Lagos is very high, not just from people staying in Lagos, also from millions of Nigerians living abroad who also want to invest back in Nigeria.
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With an extremely high demand, and limited supply, price of Lagos houses will keep going up because builders and developers are aware people will still buy these houses, regardless of the price.
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3- High cost of infrastructures
Roads, drainages, electrification, security, treated water and neighbourhood beautification, all these infrastructures cost a lot.
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For a lot of places in Lagos, particularly around the Lekki-Ajah axis, these infrastructures and amenities are done by developers not the government.
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Actually, 30% of the price or cost of a house in Lagos is because of the infrastructures in the location.
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So, you're not just paying for the block and cement used to built the house, you're paying for the amenities in the neighbourhood too.
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4- High inflation
It's not a secret that Nigeria has a very high market inflation, a very unstable and unpredictable market based on a volatile currency exchange.
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Everywhere in the world, real estate rises with market inflation, so here in Lagos too, as inflation continues to rise, price of houses selling in Lagos will go up to match the inflation rate too.
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Moreover, it's not just about the cost of the house when it was built, but velocity of money is very key here.
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For example, if a house cost N15m to build in 2019, let's say that's $4k (just an example), and naira has devalued by 2021, so the $4k is now N19.5m (for example), that means that house will be selling from N20m to N22m to match the current value of the cost price.
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Feel free to reach us if you need any help with any guide you would want us to put you through, either on buying, selling or investing on any property at all anywhere in Nigeria
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Kindly reach Rabiu on +2348028617830, thank you.