rental
Blog Real Estate

RENTAL AND SELLING OF PROPERTIES IN NIGERIA

By Omotosho Tobiloba 9 0

Introduction

Nigeria, with its burgeoning economy and growing urban population, presents a dynamic real estate market both for rental and selling properties. From the bustling metropolis of Lagos to the serene environs of Abuja, the Nigerian property landscape is as diverse as it is robust. This essay delves into the intricacies of renting and selling properties in Nigeria, highlighting key trends, challenges, and opportunities within the sector.

Rental Properties in Nigeria

Types of Rental Properties

The Nigerian rental market is characterized by a variety of property types catering to different income groups and preferences. These range from:

  • Self-contained rooms for individuals and low-income earners.
  • Flats and apartments suitable for small to medium-sized families.
  • Duplexes and detached houses for upper-middle-class and affluent individuals.
  • Commercial spaces for businesses and entrepreneurs.

Demand and Location

Lagos, as Nigeria’s commercial capital, unsurprisingly leads the rental market with high demand for residential and commercial properties. Areas such as Victoria Island, Ikoyi, Lekki, and Ikeja are particularly sought after. Meanwhile, Abuja, the political capital, attracts civil servants, expatriates, and diplomats, with locations like Maitama, Asokoro, and Wuse being prime spots. Other cities like Port Harcourt and Ibadan also see significant rental activity, though at varying scales and price points.

Pricing Dynamics

Rental prices in Nigeria can be highly variable, influenced by factors such as location, property type, size, and amenities. For instance:

  • A self-contained apartment in a suburban area might cost around ₦300,000 per annum.
  • A two-bedroom flat in Lagos Mainland could go for approximately ₦1,000,000 to ₦2,000,000 per annum.
  • Luxury apartments in highbrow areas like Ikoyi and Victoria Island can fetch rents of ₦5,000,000 to ₦10,000,000 or more per annum.

Challenges in the Rental Market

Tenancy Laws and Disputes

Despite laws like the Lagos State Tenancy Law 2011 aimed at regulating the relationship between landlords and tenants, disputes remain commonplace. Issues such as arbitrary rent increases, eviction without notice, and inadequate maintenance by landlords often lead to conflicts.

Security and Infrastructure

Security concerns and inadequate infrastructure in some areas can deter potential renters. While some estates offer gated security and reliable utilities, others suffer from poor road access, erratic power supply, and water shortages.

Selling Properties in Nigeria

Types of Properties for Sale

Similar to the rental market, the property sales market in Nigeria features a wide range of options, including:

  • Undeveloped land for future projects.
  • Residential houses ranging from bungalows to duplexes.
  • Apartments and flats, particularly in urban developments.
  • Commercial properties such as office spaces and retail outlets.

Popular Locations and Market Trends

Lagos and Abuja again dominate the scene, with high demand for properties. In Lagos, areas like Lekki, Ikoyi, and Victoria Island are hotspots for luxury property transactions. Abuja’s Maitama, Asokoro, and Wuse districts remain highly sought after. Additionally, cities like Port Harcourt and Kano also see significant real estate activities, particularly in their central business districts.

Property Prices

Property prices in Nigeria vary significantly based on location, type, and condition. For example:

  • A plot of land in Ibeju-Lekki, Lagos, could be priced at around ₦5,000,000 to ₦10,000,000.
  • A luxury 4-bedroom detached house in Lekki might cost upwards of ₦100,000,000.
  • Apartments in high-rise buildings in Lagos or Abuja can range from ₦40,000,000 to ₦150,000,000 depending on the amenities and location.

Challenges in the Property Sales Market

Title Documentation and Verification

A major challenge in property sales is the verification of titles and documentation. Cases of land fraud and disputes over ownership are common. Prospective buyers often require the services of legal professionals and property consultants to navigate these issues.

Market Volatility

The real estate market in Nigeria can be volatile, influenced by factors such as economic conditions, government policies, and investor confidence. Changes in foreign exchange rates, for example, can significantly impact property prices, particularly in the luxury segment.

Opportunities in the Nigerian Real Estate Market

Real Estate Investment Trusts (REITs)

REITs offer opportunities for investors to participate in the real estate market without directly owning property. They provide a more liquid form of investment and can generate steady income through rental yields and property appreciation.

Affordable Housing Initiatives

There is a growing focus on affordable housing to address the housing deficit in Nigeria. Government and private sector initiatives aim to develop housing projects that are accessible to low and middle-income earners. These projects often involve partnerships and financing schemes to make home ownership more attainable.

Technological Advancements

The advent of PropTech (property technology) in Nigeria is revolutionizing the real estate market. Online platforms like PropertyPro and Nigeria Property Centre provide databases of properties for sale and rent, enhancing transparency and ease of access for buyers and renters. Virtual tours, digital payment systems, and blockchain technology for secure transactions are also gaining traction.

Conclusion

The rental and selling of properties in Nigeria present a mix of opportunities and challenges. While high demand in major cities like Lagos and Abuja drives growth, issues such as tenancy disputes, security concerns, and market volatility require careful navigation. However, with the ongoing development of affordable housing, advancements in PropTech, and the introduction of REITs, the Nigerian real estate market holds promise for both local and international investors.

In this dynamic landscape, understanding the nuances of property transactions, staying informed about market trends, and leveraging technological tools are key to making informed decisions, whether you’re renting, buying, or selling properties in Nigeria.

builiding demolition
Blog Real Estate

PROPERTY DEMOLITION IN LAGOS, NIGERIA.

By Omotosho Tobiloba 8 0

Property demolition in Lagos, Nigeria, has become a significant concern for property owners, developers, and residents. The Lagos State Government has been actively demolishing structures that fail to comply with building regulations, posing safety risks or violating urban planning laws. This blog post explores the reasons behind these demolitions and offers practical steps to prevent them.

Causes of Property Demolition

1.       Structural Dilapidation: Buildings that are structurally unsound and pose a danger to occupants and neighboring structures are often demolished to ensure public safety1.

2.       Building Code Violations: Properties that do not adhere to building codes, such as using improper construction materials or making illegal modifications, are at risk of demolition1.

3.       Illegal Constructions: Structures built without the necessary permits or approvals from regulatory authorities are subject to demolition to uphold urban planning regulations1.

4.       Unsafe Conditions: Buildings with hazardous conditions, such as fire hazards, electrical faults, or compromised foundations, may be demolished to guarantee public safety1.

Steps to Prevent Property Demolition

1.       Obtain Proper Documentation: Ensure you have all necessary land title documents, including a Certificate of Occupancy (C of O) or other relevant land titles.

2.       Secure Planning and Development Permits: Obtain planning and development permits from the appropriate government agency. This may include submitting site plans, environmental impact assessments, and architectural drawings2.

3.       Conduct Environmental Impact Assessments (EIA): For projects with potential environmental impact, conduct an EIA and obtain approval from the Federal Ministry of Environment or relevant state environmental agency2.

4.       Get Survey and Building Layout Approvals: Conduct a land survey and obtain approval for the building layout from relevant authorities, including local planning departments2.

5.       Adhere to Structural Design Standards: Submit structural designs to relevant engineering bodies for approval to ensure compliance with structural and safety standards2.

6.       Obtain Building Construction Permits: Secure a building construction permit from the local building control agency or department responsible for regulating construction activities2.

7.       Ensure Fire Safety Compliance: Adhere to fire safety regulations, including obtaining approval for fire safety measures, emergency exits, and firefighting equipment2.

8.       Follow Health and Safety Regulations: Implement safety measures and obtain necessary approvals for construction worker safety.

Conclusion

Preventing property demolition in Lagos requires diligence and adherence to regulatory requirements. By securing the necessary permits, conducting thorough assessments, and complying with safety standards, property owners can protect their investments and contribute to a safer, more orderly urban environment.

Feel free to share your thoughts or ask any questions about property regulations in Lagos.

MACAULAY OAKS
Construction Real Estate

MACAULAY OAKS

By Omotosho Tobiloba 68 0

MACAULAY OAKS is an amazing gated estate with 50 serviced plots located in Ibeju Lekki, Lagos State.

It offers a variety of amenities such as basketball and football courts, gym house, accessible road network and drainage systems to make life more comfortable for its residents.

Each land provides ample space to build upon creating it as the ideal setting for any project

The area is surrounded by properties such as ITUNU, TIWA, and AMEN ESTATE PHASE 3 which are selling at an average price of 25-30 million naira per plot.

This makes it a great investment opportunity for those looking to purchase land in the region

Our land, which is located in the same area and has similar infrastructure to other properties around us, is currently being sold at a promotional price of N12M for 500 sqm and N7M for 300 sqm.

This offer represents an incredible bargain compared to what you would find elsewhere!

This makes it an excellent opportunity for long-term financial growth and stability.

Investing in land is one of the most secure and profitable ways to invest your money as it always appreciates over time.

If we look back at how much properties such as Lekki, Ikate, Salem was selling for before compared to now, you can see a significant increase in value.

Our land is strategically located in the center of a government-focused and future development area, with new seaports, airports and refineries being built nearby.

We are confident that this will bring more progress to our region as civilization continues to move forward around Ibeju-Lekki and other parts of the country.

Investing now while the prices are low is a smart business decision, especially with the current high inflation rate. You can watch your money multiply; and we would be delighted to help you make wise investments for maximum returns.

You can be confident that you will make a return on investment (ROI) of more than 60%, which is higher than the current or future inflation rate.

The real cost of rental in lagos Nigeria
Construction Real Estate

THE REAL COST OF RENTAL PRICES IN LAGOS NIGERIA.

By Omotosho Tobiloba 73 0

Lagos is one of the fastest growing cities in Africa. Apart from being the hub for entertainment and the likes, it also houses famous actors, musicians, and comedians.

Lagos may be the smallest state in Nigeria based on landmass but it has the highest number of residents.

Since Covid 19, house rentals in Lagos have sky-rocketed about 20%. Due to the effects of this, Landlords have increased their rent over their properties.

Lagos is divided into two sections and it includes Mainland and Island.

The island is considered as the hub for the rich and affluent, hence it is more expensive while there are some places on the mainland, such as Ikeja, Magodo, Ilupeju, that are also expensive.

But one of the biggest surprises renters in Lagos are beginning to learn, is the true cost of renting an apartment. Many times, the cost of the apartment is usually higher than the amount that is it was listed for.

Hence the need for this topic; when looking for an apartment in Lagos, you must factor in some hidden charges. This will help you set up your budget so that there are no surprises when you eventually make your choice.

Here are some hidden charges you should know about rental properties;

  • Agency Fee

This is the fee you pay to the agent who facilitated the renting process for you. The fee is not usually fixed (some collect as much 15% of the total cost of house). But understand that the more expensive the house is, or its location, the more the agent/Agency fee.

  • Agreement fee

This is the fee you pay after you have agreed to rent the apartment space. It is usually created by the owner of the property and it is disbursed at his own digression.

  • Commission

This commission is also created by the owner of the property and it is usually used to settle the agent/agents who helped you secure the space.

  • Damages/ Caution Deposit:

This is money paid to the Landlord for damages that the tenant may incur on the property while living there. If there were no damages made, the money is supposed to be returned, when leaving the apartment.

  • Service Charge

 This is the fee you pay for services rendered in some properties, services rendered varies and it includes, water, power, waste disposal, security, This cost is included in the rent and varies by property.

  • Hidden Costs and Benefits

These are the additional living expenses, costs or benefits a prospective tenant will incur by choosing to live in a specific place in Lagos.

Hidden cost like the cost of commuting from your new house to your work, how close is your kid’s school to the new property? How safe and secure is your new neighbourhood?

These costs can add up and make a significant impact on personal finances in the long run, like factoring them into your choice at the start can save you lots of money and hassle.

Do you have a budget and location in mind or you need help in creating a rental budget? Oakwood Heights Ltd is here to help make your renting in Lagos hassle free, Get in touch with us today!