A few days ago, a lady shared her daily experience of how she shuttles from her place of residence in Mowe to where she works at Ikate.
That story received a lot of reviews on Twitter and also trended for almost 24 hours. It also received a few controversies, with some people disputing the genuineness of that story.
However, we are not here to condemn or verify if it’s true or not but to learn a few lessons from her experience.
Since Lagos sits as the economic capital of Nigeria, the state is fast becoming a choice location for both job seekers and business owners alike.
So we get people from various works of life coming into Lagos either for employment opportunities or to do business.
A large chunk of those in paid employment work in more commercial areas in Lagos such as; Ikeja, Surulere, Yaba, Apapa, Lagos Island, Victoria Island, Ikoyi, Lekki Phase 1, with places on the Island having more share in numbers.
More people work on the Island, not because its the only place in Lagos where you find businesses, but because it has a large number of companies with high paying jobs (making it the Economic Capital of Lagos).
Now because more businesses are setting up offices on the Island, the demand for nearby accommodation keeps increasing by the day.
Unfortunately, these rents can be pricy too (for instance, you’d need between N800,000 to N2.5million to rent a One-Bedroom flat in Lekki Phase 1).
That’s a lot for someone who earns less than N200,000 per month (meanwhile the average Nigerian earns less than N50,000 monthly)
So the option to most employees is to either stay nearby with a loved one or find cheap accommodation anywhere (which sometimes may be out of town such as Mowe).
Meanwhile, some of their loved ones live in rented apartments (which means that their rent can also go up at any time, plus other bills they still have to handle themselves).
That alone will eat deep into their savings and possible investments.
On the other hand, those who own their properties or live with relatives (who are homeowners), may not have the same experience of worrying about the next rent to pay.
All because of the sacrifice (to buy a landed property) such relative made several years ago.
Remember when lands were cheap, and some people had doubts that Lekki would be profitable to own landed properties?
Well, the market has proven them wrong.
Because when they saw bushes, flood and swamps, the market saw rising business activities.
And that’s what we are experiencing today in this axis.
Today, the Ikoyi/Victoria Island/ Lekki axis is fast becoming commercialised, and the people enjoying this rapid growth are the early-staged landowners (who bought lands at cheap rates).
If there is one thing I noticed that influenced real estate prices in Lekki, it is the proximity to Victoria Island (which is an economic powerhouse in Lagos).
Locations that are close to places like Victoria Island perform better than other areas (as you will notice in adjacent neighbourhoods like Chevron, Ajah, Sangotedo and so on).
So the next time you want to invest in a landed property, ask yourself “Will there be a place like Victoria Island nearby in the nearest future?”
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