7 REASONS YOU SHOULD NOT BUY A LAND IN IBEJU LEKKI IN 2023 – Real Estate with Sally | 2023
70% of Buyers Make the Mistake of Buying a Property in Ibeju Lekki every year and come back regretting it. Avoid Making the Same Mistake
Table of Contents:
Where is Ibeju Lekki in Lagos?
Why people are buyings Lands in Ibeju Lekki
Why you should not buy land in Ibeju Lekki
Critical things to consider before buying land in Ibeju Lekki
The Best time to buy land in Ibeju Lekki
Before we dive deep into why you should not buy a property in this location, let’s quickly look at a few things about Ibeju Lekki and why people are hurrying to buy properties here.
Where is Ibeju Lekki?
Ibeju-Lekki is a local government area of Lekki, Lagos State, Nigeria. The administrative centre was formerly at Akodo and was later moved to Igando Oloja due to the creation of the Lekki Council Development Area. The name of the Local government was derived from two autonomous communities, Ibeju and Lekki.
The demographics of the area include people from different parts of the country living, working, and doing business in the area. Ibeju Lekki has the potential for tourism as it is endowed with beautiful ocean-front and lagoon views.
The development in the area is rapid and ongoing, some even refer to the area as the new Lagos. The commercial centre of Lagos state seems to be shifting gradually towards the area with much effort being put into developing industries and infrastructure.
Ibeju-Lekki is one of the LGAs for the planned Lekki City. With the actualization of the blueprint, Ibeju Lekki is expected to become a central hub for business, manufacturing, warehousing, and logistics. Forecasts have been made about an increase in commercial activities in the area as a result of these developments which will create thousands of jobs and make the area a major business location in the country.
Why People Are Buying Lands in Ibeju Lekki
- Ever Growing Population of Lagos
Population no doubt is a major growth driver for the real estate sector, Lagos is the smallest but most populous state in Nigeria. Lagos has grown from just 1.4million inhabitants in 1970 to approximately 22million as of today.
Lagos has a population density of about 5000persons/Sq.km making it one of the most densely populated cities in Africa. It has been estimated that about 86 persons migrate to Lagos every hour, that is more than 2000 persons every day and close to a million persons every year.
And guess what, 80% of the said migrants, would rather live on the island due to access to better opportunities than on the mainland.
The housing deficit in Lagos State in 2016 stood at about 2.5 million houses according to Mr. Gbolahan Lawal, the Commissioner for Housing, which equaled 14.7% of the country’s total housing deficit according to the National Bureau of Statistics (NBS).
- Economic and Industrial Hub of Nigeria
In Ibeju Lekki, there are ongoing and proposed industrial developments such as the Dangote Refinery which is expected to be the world’s biggest single-train facility and is estimated to cost $9bn.
It covers a total area of 2,635ha on the Lekki Free Zone near the Lekki Lagoon, enabling easy shipment of refined petroleum products to international markets.
The refinery is expected to double Nigeria’s refining capacity, largely to accommodate the pressing demand for fuel and export to foreign markets in and out of Africa. A fertilizer plant is also included in the refinery complex, to fully utilize the raw materials released from the refinery.
Also, there is the Lekki International Airport project which was initiated to lessen the pressure on the Murtala Muhammed Airport (MMIA) in Ikeja.
The master plan of the new airport shows that it’s designed to cater to wide-body, double-deck, and four-engine aircraft with the capacity for up to 500 seats.
For a start, the Airbus A380 is expected to carry two million to five million passengers per annum with future prospects of expansion to cater to the increasing aviation needs of the rapidly developing Lekki area and its environs.
- Growing Middle-Class Population
Lagos vibrant economy has led to a growing middle-class population with money to spend on luxuries and decent accommodation.
The middle segment of the housing market remained robust despite the economic headwinds experienced by every other sector of the Nigerian economy and this has been attributed to strong demand from the middle class.
Prices in the Lekki axis which is largely middle-class neighborhood grew an average of 2.8 percent when other segments of the real estate sector declined countrywide. Lagos has the largest share of working population in Africa; over 15.2million of the estimated 22million residents are within the 15 – 64years age bracket.
- Fast Urban Growth and Development
With a 16 percent urbanization rate, Lagos is one of the fastest-growing megacities in the world. Lagos has attained the megacity status, that means that the ‘bush’ you are buying today will become ‘city’ faster than you imagine.
Ibeju Lekki in Lagos is the hottest investment destination in Africa at the moment with investments topping US$200 billion.
The Lekki free trade zone(LFTZ) has attracted massive investments within the zone such as Deep Seaport, Dangote Refinery, Lekki International Airport, Golf Courses and Resorts, the 4th Mainland Bridge, the Smart City Project, etc.
It has been projected that developments in Ibeju Lekki will provide up to 400,000 jobs on completion, smart investors should position to take advantage of the expected demand for residential and commercial properties in the Ibeju Lekki area.
- Fast Appreciating Property Prices
Lagos is a dream destination for real estate investments because of the high rate of returns on investments. The Market Analysis for Lagos State shows one of the highest property values in Nigeria.
The Lagos property market especially the mid-market segments remained buoyant when property prices in states across the country took a haircut from the recent economic recession.
A piece of land that was purchased around 2006 in Lekki for 5million was sold for 40million naira nine years later, that is a seven-fold (700%) increase and it is not an isolated case.
- Stable Political Environment
Lagos has the most stable political environment when compared to other states in Nigeria. Since the return of democracy in 1999 Lagos has been under the control of the same political party and this ensures a continuum in governance, this is good for the real estate market because projects and developments are implemented according to the master plan.
It also means that important projects that drive growth are not sacrificed on the altar of politics.
- Strong Rental Market
Rising property and rental prices are a reflection of the huge supply-demand gap of affordable housing in Lagos. There are more renters than owners in the Lagos property market due to the high cost of homeownership coupled with a very underdeveloped mortgage market.
The mortgage market is very small and unaffordable with rates ranging from 16 – 30% and tenors between 1 – 15years. Study shows that over 75% of property seekers are looking for rental accommodation.
Lagos is like a window to the future. Unlike the rest of Nigeria, Lagos is a great example of what is possible when the government offers energy and other initiatives to its residents.
The population of Lagos is projected to double by 2050 which will make it the 3rd largest city in the world. The growing population will need to be housed therefore real estate investment in Lagos state cannot be any brainier given its estimated 3.2% annual population growth coupled with a 16% urbanization growth rate.
Strong and sustained demand for housing means that prices will continue to go up while smart investors will continue to reap handsome returns on their investments.
The best time to buy is yesterday, the next best time is NOW. Prices are never going to come down. Don’t wait to buy Real Estate, buy and wait. What do you think?