Buying property anywhere in Nigeria is capital-intensive. In a country where land can cost a tidy sum, you can expect houses to cost much more. And then, we’re talking about Lagos – the king of Nigeria’s real estate, you know what that means financially. Investors in the diaspora want to know the cost of buying a house in Lagos, the Centre of Excellence.
While houses in Lagos can be pricey, the cost often depends on a number of factors, to be honest. However, it’s important to point out that you’d most likely find something within your budget if you know where to look.
If you’re new to buying houses or just want a general overview, we are here to help. In this article, we will give you a clear understanding of how much it will cost you to buy a house in Lagos, and everything else you need to know to make an informed decision.
Why Buy a House in Lagos?
First off, let’s talk about why people are so keen on buying houses in Lagos. Let’s talk about why you are probably interested in buying a house in Lagos too. The reason is simple. Lagos is a city of endless opportunities with an ever-growing population.
With about 16 million residents according to the Lagos Bureau of Statistics, the demand for housing is sky-high. This makes it a great spot for real estate investments.
Plus, the city’s booming economy and business environment make it one of the most sought-after places to live in the country. However, this also means that property prices in Lagos are relatively high compared to other Nigerian cities.
Add that to the fact that Lagos has practically something for everybody. There are homes to live in, houses you can rent out, and houses you can resell for profit. There are even houses you can use for shortlet business if you are in the hospitality sector.
In fact, there’s no limit to the kind of houses and opportunities you can get here. Your choice will depend largely on your budget and what you’re looking for in a neighborhood.
How Much Does It Actually Cost to Buy a House in Lagos?
Alright, let’s get to the meat of the matter. Just how much does it cost to buy a house in Lagos? The price range varies very much. But that depends on the location and type of property. Here’s a detailed breakdown:
1. High-End Neighborhoods
These are the crème de la crème of Lagos real estate. If you’re aiming for luxury, this is where you should be looking.
Ikoyi
This is one of the most prestigious areas in Lagos. Ikoyi is synonymous with wealth and luxury. It is a prime real estate area, home to celebrities, business tycoons, and high-net-worth individuals. Properties in these locations are not for the faint of heart when it comes to budgets.
A 5-bedroom detached house here can cost anywhere between ₦2 billion million to ₦5 billion, depending on the amenities and exact location. Apartments are slightly cheaper but still pricey, with 3-bedroom flats ranging from ₦800 million to ₦2 billion.
Victoria Island
This area has a lot of corporate headquarters and five-star hotels. You’d also find a lot of luxury apartments here. In Victoria Island, a 4-bedroom terrace duplex costs between ₦250 million and ₦550 million.
However, high-end houses are much more expensive. Expect to pay ₦700 million to ₦3 billion for ultra-modern mansions with high-end finishes, amenities, and security.
Banana Island
This is the most exclusive and expensive neighborhood in Nigeria. A luxury mansion here can cost from ₦3 billion to over ₦9 billion. Even a modest 3-bedroom flat is priced between ₦800 million and ₦1 billion.
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2. Middle-Class Neighborhoods
If the high-end neighborhoods seem a bit out of reach, middle-class areas are a lot more affordable but still offer a comfortable lifestyle.
Lekki (Phase 1 and Phase 2)
In Lekki Phase 1, a 4-bedroom semi-detached house costs between ₦200 million and ₦900 million, while Phase 2 offers more budget-friendly options ranging from ₦50 million to ₦500 million.
Surulere
This area is popular for its central location and vibrant community, a 3-bedroom flat goes for around ₦70 million to ₦250 million, while a 4-bedroom duplex is priced between ₦89 million and ₦400 million.
Ikeja (GRA and Mainland)
Ikeja GRA is one of the most desirable neighborhoods on the mainland. It’s home to many corporate offices and is generally less expensive than the more upscale areas of the island. A 5-bedroom detached house costs about ₦55 million to ₦850 million, whereas a 3-bedroom apartment in other parts of Ikeja ranges from ₦27 million to ₦550 million.
3. Affordable Neighborhoods
If you’re a first-time buyer or someone on a budget, Lagos has more affordable areas that still offer good living conditions.
Ajah and Sangotedo
These neighborhoods are rapidly developing, and prices are relatively moderate. A 3-bedroom duplex in Ajah costs about ₦25 million to ₦360 million, while in Sangotedo, similar properties range from ₦40 million to ₦750 million.
Ikorodu and Yaba
If you’re on a tighter budget, Ikorodu is one of the most affordable options. 3-bedroom bungalow cost between ₦8 million and ₦250 million. In Yaba, which is more up-and-coming due to the presence of universities and tech hubs, prices range from ₦20 million to ₦850 million for a decent 3-bedroom house.
Agege and Alimosho
In these densely populated suburbs, you can get a 3-bedroom flat for as low as ₦20 million. Duplexes are also relatively affordable, ranging from ₦40 million to ₦400 million.
What Factors Influence the Price of Property in Lagos?
When determining how much you’ll pay for a house in Lagos, several factors come into play:
1. Location
This is arguably the most significant factor influencing the cost of property. Neighborhoods like Victoria Island, Lekki, and Ikoyi are among the priciest due to their strategic locations and luxury appeal. Also, they are close to business areas, restaurants, and entertainment centres. More suburban areas such as Alimosho or Abule Egba may offer more affordable options.
2. Property Type
Of course, this is logical enough. Prices increase with increasing value and luxury. So naturally, luxury properties with state-of-the-art amenities will cost more than a simple family home. Also, newly built properties tend to cost more than older ones, as modern designs and construction materials add to the price.
3. Size of the Property
This is another important determining factor. The size of the land and the house itself also play a big role. Larger plots in prime locations with spacious houses will obviously attract higher costs. If you’re looking for a family-sized home with a backyard or a multi-story building, be prepared to pay much more for it.
4. Infrastructure and Amenities
Lagos is known for its traffic congestion, which can make the location even more important. Properties located close to good roads, public transportation, and essential services like hospitals and schools tend to cost more. Additionally, houses in estates with high security, pools, gyms, and other luxury amenities are priced at a premium.
5. Market Demand
Just like in any market, demand plays a great role in determining prices. Areas that are in high demand due to development projects, close to the Lekki Free Trade Zone, or other factors will have higher prices.
6. Economic and Political Factors
Economic stability, government policies, and overall investor confidence in Lagos can affect property prices. Inflation and foreign exchange fluctuations may also impact the cost of materials used in construction, which, in turn, affects the prices of homes.
Additional Costs to Consider
It’s not just about the purchase price. When buying a house in Lagos, several additional costs can take you by surprise if you’re not prepared:
- Agency and Legal Fees: Typically 5-10% of the property cost.
- Survey and Documentation Fees: This includes title registration and could cost ₦500,000 to ₦5 million, depending on the property location.
- Stamp Duty: Usually about 1.5% of the property value.
- Service Charges: Applicable in estates or gated communities for maintenance of shared facilities.
Is It Worth It?
Absolutely. Despite the high prices in some neighborhoods, real estate in Lagos is a fantastic investment. According to recent statistics, the Lagos property market has shown a steady appreciation in value, with prime locations experiencing annual growth rates of 4% to 6%. Whether you’re buying to live in or rent out, you’re likely to get good returns on your investment.
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- How Lekki International Airport Will Impact Real Estate Investment in Epe
- What You Should Know About The Lekki International Airport
Final Thoughts
Buying a house in Lagos is undoubtedly a big decision, but it can be an incredibly rewarding one if you can pay the cost. While one might worry about the high cost of houses here, it should not stop you if you truly want to buy a house.
The good news is that with the diverse range of neighborhoods and property types in Lagos, you will definitely find something that is close to your budget and preference.
If you’re ready to take the plunge, be sure to do your due diligence. And while on it, prepare for additional costs that come with buying a house.
Looking for expert help? Search no more. Affable Homes Ltd is here to guide you through every step of the process to ensure you make a smart and informed investment. Contact us today to get started.
