The real estate sector in Nigeria is currently facing a lot of problems. Despite news that the sector is expected to experience a surge in profitability, many people are scared to invest their hard-earned money. This fear is not unfounded; many have lost hope, resources, and even their lives to a single, critical issue: choosing the wrong location. I recently spoke with a friend in the diaspora who had to request a refund on a property he bought in Lagos. The location was plagued with a series of problems, most notably a land dispute where the original owners’ children refused to vacate the property despite the sale. The promised peace of mind was gone, and he not only lost a chunk of money but also his faith in the Nigerian real estate market. Just like my friend, you may be ready to delve into the rewarding world of real estate investment, and that’s commendable. However, before you make that decision, there are crucial factors you must consider to avoid a costly mistake.
Here are five essential tips to help you streamline your options when picking the right location.
1. Look for Solid Infrastructure
A location’s infrastructure is a primary indicator of its long-term viability and potential for appreciation. A poor road network is a major red flag, as it signals a disaster waiting to happen. An environment with good infrastructure and well-maintained roads attracts a steady stream of prospects, including tenants and business owners. So, when investing, ensure you are not buying into a construction zone camouflaging as a fully developed area.
2. Assess Market Demand and Livability
Before you invest, you must be willing to ask a critical question: “What is the livability standard of this location?” You should be vigilant and look for a vibrant community with a positive buzz. My father’s careful research into the safety and livability of our family home’s location paid off. The area is not only calm but also attracts people willing to pay a premium to rent or buy houses. High demand means your property will be less likely to sit empty, ensuring consistent cash flow.
3. Consider Future Growth Potential
Investing in a location that’s future-proof is like buying stock in a startup destined to be a unicorn. Check local development plans, upcoming infrastructure projects, and zoning laws. Are new businesses moving in? Is the local government investing in parks and schools? A little homework now can save you from investing in a place that’s about to hit a dead end.
4. Prioritize Safety
No one wants to live in a place with an alarming crime rate. Conduct online research for crime statistics and ask around—neighbors can be a goldmine of information. A friendly community with good schools and parks will always boost your property’s appeal and attract high-quality tenants.
5. Evaluate Accessibility and Transportation
Consider whether people can get to your property easily. Evaluate its proximity to major highways, public transportation, airports, healthcare facilities, and entertainment centers. The easier a location is to access, the broader your pool of potential tenants and buyers will be.
I can assure you that there are other things to look out for but I personally picked the ones of utmost importance to help you out when you decide to make the choice of investing.
But if perhaps you are still unsure of the choice to make consider our ultra-modern shopping complex, ILE-AJE, in Ojota, Lagos. This location boasts a daily footfall of over 1,000 persons and is a prime spot for businesses. For aspiring homeowners, our project at Maryland, Lagos, THE GREYSTONE RESIDENCE, offers a calm and secure environment with amenities that simplify life for its occupants.
In Conclusion:
Choosing the right location isn’t about finding the “perfect” spot — it’s about finding a spot that’s “almost” perfect with room to grow. Think infrastructure, demand, future plans, safety, and access. Do your homework, trust your gut, and remember: even the best location needs a good property to make it shine.
Now go forth, future real estate mogul, and pick that winning location! Your future self will thank you (probably with sky-high ROI’s).