Below are six factors that affect the prices of houses and land for sale or rent in Lekki, Lagos. These four factors are the reasons why there are differences in the prices of houses and land for sale or rent in Lekki, Lagos.
1) The amount and quality of infrastructural facility in an area in Lekki
The extent or level of infrastructural facility in an area in Lekki, Lagos is the number one factor that determines the value of real estate properties for sale or rent. The more infrastructural facility an area can boast of, the more it adds to its real estate value. This facilities includes good roads and drainage, 24hours security, 24hours water supply, 24hours power, etc. Let’s use Nicon Town and Lekki Phase 1 as a case study. Lekki Phase 1 shares a boundary with Victoria island and there is a bridge linking it with Ikoyi through the Lekki-Ikoyi Link Bridge, but the value of its real estate properties for sale or rent is below that of Nicon Town because Nicon Town possess a lot of infrastructural facilities that Lekki Phase 1 can only dream of.
Another similar example is Ikota Villa Estate and Crown Estate, both along the Lekki expressway. Crown estate is about ten minutes drive away from Ikota Villa Estate and despite this huge differences in distance, the value of Crown Estate’s properties for sale or rent is at per with that of Ikota Villa Estate because of the huge deficiency of infrastructure in the latter.
The same also goes for real estate properties for sale or for rent along Chevron Drive. The value of land for sale in estates along Chevron Drive like Carlton Gate Estate and Northern Foreshore Estate is above that of Chevyview Estate which is located also along Chevron Drive because Carlton Gate Estate and Northern Foreshore Estate boasts of better infrastructural facility than Chevyview Estate.
2) Security
Due to serious insecurity challenge in most part of Nigeria, not leaving out Lagos, most investors/ residents along the Lekki corridor are very mindful of living in a well secured, controlled and organised gated estates. Apart from infrastructural facilities as mentioned above, estates like Nicon Town Estate, Carlton Gate Estate, Northern Foreshore Estate also enjoy higher capital and rental values because of good security system compared to their comparables. Investors/ Renters do not mind to pay more for properties in these secured estates, than not-too-secured, porous gated estates.
3) Distance
Distance is the second most important factor affecting prices of land and houses for sale or rent in Lekki, Lagos real estate market. Most real estate investors are not aware of this, they believe the price of properties for sale or rent are the same all over lekki and wonder why there should be disparities in prices from location to location. The truth is, the further you drive away from major urban areas in Lekki (Lekki Phase 1 and V/I) and heading towards the direction of Epe, the cheaper properties for sale or rent becomes. This is so because a lot of buyers prefer buying properties in areas that are closer to urbanised areas which helped push the prices of properties in those areas up because of the huge demand. e.g 1000sqm in Lekki phase 1 goes for 130 to 140 million naira, but when you drive further down to lets say Carlton Gate Estate and Victoria Garden City, you will buy the same size of land for 110 million naira.
4) Nature and Condition of property
A land located in swampy area will be more cheaper than a dry land if they are located in the same area. So also, a new or refurbished house will be more expensive than a run down or old house that is located in the same area.
5) Title of Property
The more titles (documents) a house or land acquires, the more it adds to its value. e.g, a property with title such as Certificate of Occupancy (C of O) or Governors’ Consent is likely to be more expensive than a land that has only gazette or letter of allocation.
6) Name of Neighborhood
The name or reputation of an area in Lekki also adds to its value. Some areas are reputed to be an enclave of the high and mighty in society e.g. Nicon Town which in turn adds to its real estate price/ value for sale or rent. This particular factor is not as strong as those listed above but has to some extent an influence on the value of properties in Lekki.
