Real estate trends are beginning to shape the Lagos property market in interesting ways. Some of these trends, like rapid urbanization, shifting demographics, and a growing population, are influencing new trends that reshape where and how people live and work in Lagos.
The city of Lagos is currently undergoing a change in real estate, comprising co-living spaces to smart homes.
In this article, you will get an insight into the current real estate trends in the city of Lagos.
We would also be highlighting how government policies like Land Use Act reforms are affecting the sector and give case studies on areas like Eko Atlantic and Magodo GRA.
1. Co-Living and Co-Working Spaces
This is targeted towards meeting the needs of young Professionals. Co-living and co-working spaces happen to be one of the leading trends in Lagos real estate, especially in highly dense areas like Yaba, Ikeja, Lekki and Victoria Island.
With the rise in young professionals, tech entrepreneurs and digital experts, the demand for a comfortable and convenient living space is on the rise.
This is also currently embraced by Startups and SMEs, which reduces the operational costs while providing access to networking opportunities.
Co-working facilities are now being incorporated by Real estate developers, which creates hybrid environments that fit into the modern urban lifestyle.
Why is it important?
- Affordability: Sharing of rent when co-living makes housing more accessible.
- Community Living: Engagement by the community can be promoted by shared amenities and social events.
- Remote Work Support: Reliable internet and workspace infrastructure attract remote professionals.
2. Smart Home Adoption: The Rise of Tech-Integrated Living
There is currently a surge in smart home developments in the Lagos property market, particularly in high-brow areas like Lekki, Ikoyi, Victoria Island, Ikeja and Magodo.
Most of these smart homes consist of Internet of Things (IoT) features, which include access to biometrics, remote surveillance, smart lighting and temperature control.
Security-enhanced smart homes are now mostly adopted in areas like Lekki, Banana Island and parts of Ikeja.
A good number of people looking to buy homes, especially the affluent ones, are now prioritizing security and automation.
Why the trend of Smart Homes?
The primary reason is the security of lives and properties. In high-risk areas, peace of mind can be guaranteed with the offer of smart and IoT-enhanced facilities.
Also, energy consumption and utility bills can be significantly reduced with the use of Smart systems.
Additionally, smart homes offer lifestyle convenience, providing modern luxury at its peak through the use of voice-activated controls and mobile apps.
Also Read:
- Should I Buy a House or Land in Lagos?
- Different Land Use Plans Available in Lagos: A Complete Guide
- 5 Businesses You Can Start on Commercial Land in Lagos State
3. Shift to Suburbs
With the increasing population in central Lagos, the suburbs are currently experiencing a rise in real estate.
Affordable residential alternative areas like Ikorodu, Epe, Ajah, Ibeju-Lekki, and Badagry are currently emerging.
These areas are being taken advantage of by developers due to lower land costs. As roads and public transport services like the BRT and Lagos Blue Rail expand, commuting from these areas is becoming easier and more accessible.
Furthermore, the relatively low cost of living and rapid infrastructure growth are significantly gaining ground in areas like Epe, Ikorodu, Ajah, etc., due to their lower cost.
4. Surge in Commercial Real Estate: E-commerce Provides Warehousing and Logistics
Parallel growth in commercial real estate in Lagos is a result of the rise in Nigeria’s e-commerce sector.
Warehousing capacity of major online retailers like Jumia and Konga is being expanded to improve logistics and delivery efficiency.
There is a high demand for warehouses and distribution centers in industrial zones like Oshodi, Amuwo-Odofin, and the Lekki Free Trade Zone.
These industries are catered for by a wide range of equipped facilities with automated inventory systems and cold storage units.
Impact of this trend:
- Creation of Job Opportunities: The growth in Warehousing supports logistics, tech and retail jobs.
- Rapid Deliveries: The introduction of Improved infrastructure enhances customer satisfaction.
- Investment Opportunities: From the leasing of warehouse space, developers gain more with relatively high returns.
5. Government Policies: How Land Use Act Reforms Are Influencing the Market
What is currently influencing the Lagos property market is the ongoing government reform to the Land Use Act. To increase transparency, reduce fraud and streamline ownership verification, the government is making moves to digitize land registration and title documentation.
The confidence of investors is improving, especially among foreign and institutional investors. There’s a rapid increase in urban development and infrastructure from private-public partnerships (PPPs).
The Effect of this Trend in the Market:
- Faster Land Transactions: Streamlined approval processes attract more investors.
- Reduced Disputes: Transparent land ownership records help prevent legal conflicts.
- Urban Expansion: Encourages infrastructure development in underutilized areas.
Eko Atlantic: Luxury Apartments with High ROI
Real estate developers with solid liquidity are now moving to the Eko Atlantic region due to its uniqueness and high return on investment.
Eko Atlantic attracts both high-net-worth individuals as well as international investors due to the availability of high-rise apartments, commercial towers and a marina.
First Bank Holding and TVC Television recently moved their headquarters to this location. Other top companies like MTNN, Dangote Group etc., are making serious moves of relocation to Eko Atlantic
These luxury apartments can give investors up to 20% annual return on investment due to their high rental demand from expatriates and diplomats. Its strong real estate performance is greatly backed up by the city’s advanced infrastructure and status.
Key Features of the Eko Atlantic:
- Self-sustaining power and water supply
- World-class security and telecom infrastructure
- Proximity to the Victoria Island business district
Also Read:
- What is the Difference Between Excision and Governor’s Consent in Lagos?
- Where to Buy Land Near Lagos at Affordable Prices
- How to Choose the Best Real Estate Company in Lagos Nigeria
Conclusion
In Lagos, the real estate market is developing rapidly and this is due to technology, shifting lifestyles and economic changes.
Each trend reflects a city adapting to modern demands, which consists of smart homes and co-living spaces, to the rapid growth of the suburbs and the rise in commercial property.
Lagos, as a city, is setting itself in a position to attract both local and international investors. With the introduction of government policy reforms, land acquisition has become more accessible and transparent for any type of investor.
In Nigeria’s most vibrant property market, whether you are a developer, buyer or investor, it is important to stay informed about these trends. Knowing these real estate trends in Lagos is essential in making profitable decisions.
To explore any of our real estate investment packages like land banking, retirement plan, kids education investment plan, trade apprenticeship plan or if you want to purchase some plots where you will have residential or commercial buildings, send an email to us at info@affablehomes.com.ng or call +2349134056630.
Click here to fill out the form and we will reach out to you immediately.
