There was a time when you’d hardly find small unit apartments (studio, one & two bedrooms) for sale in Lekki Phase 1. Back then, the sales market had more family-sized homes (three or more bedrooms).
But today, things are gradually changing. Investors and developers are now offering these smaller apartments for sale mostly to buyers who want rental returns from their investment.
In 2018, I observed that the average price for a 1 Bedroom apartment in lekki Phase 1 was about NGN 30million while the average rent was NGN 1.5million.
My prediction then was that by 2022, a 1 Bedroom home sells for NGN 43million while the average rent at NGN 2.16million.
However, the real estate market is quite dynamic. Several factors can affect the growth of property prices in a particular location. It may not be wise to project figures using past data alone without knowing the current state of things.
So how much is a One Bedroom Apartment in Lekki today?
To rent this type of apartment today will cost between NGN800,000 to NGN2.5million (an average of NGN1.65million).
While it will cost you an average of about N35million to buy one in Lekki Phase 1.
This shows us that the average rent within two years grew by 5% per annum, while the selling price increased annually by 8%.
Now back to my 2022 prediction, should we expect that growth?
If we maintain this growth rate (5% rental & 8% sales growth), the average rent for a 1 bedroom apartment in Lekki Phase1 may be NGN1.8million and sell for NGN 40million by 2022.
But who knows, the market can still suprise us by then.