Top 3 Cities in Nigeria Other Than Lagos For Real Estate Investment
While the allure of Lagos State is obvious even to the blind, there are some other states that offer excellent opportunities for real estate investors.
Samuel Agbelusi
Nigeria has 36 states and the Federal Capital Territory, each with its own set of strengths. They could be classified based on their various strengths, which range from agriculture to trade, manufacturing, and so on.
While the allure of Lagos State is obvious even to the blind, there are some other states that offer excellent opportunities for real estate investors.
We'll look at some of those cities and the opportunities they provide for real estate investors.
1. Ibadan
Ibadan has received a lot of attention in recent years, thanks to projects like the Lagos-Ibadan Standard Gauge Railway. Investors are becoming interested in the potential that Ibadan offers.
The Oyo state government has designed a package of structured incentives to attract investors in priority industries for development, including agriculture and agro-industrial processing, manufacturing, transportation infrastructure, culture and tourism, solid minerals, and power.
Given that the cost of land in Lagos State has risen dramatically in the last decade, and that quality sites with good access and support infrastructure are in short supply, Oyo State is becoming increasingly appealing in this regard. The Oyo State Ministry of Trade, Investment, and Cooperatives have stated that it is willing to offer discounts of up to 80% on land costs for non-PPP investments. The ministry is also providing support infrastructure, such as access roads, for larger projects, addressing some of the region's major business challenges.
This has simplified doing business in Oyo state and increased the state's real estate development potential.
2. Abuja
Abuja has always been a real estate investor's dream, as it is the only city in Nigeria that can compete with Lagos state in terms of wealthy individuals, expensive properties, and, to some extent, the intriguing lifestyle.
Because of security concerns in the northeast, Abuja's population has steadily increased, increasing the demand for rental apartments. This demand has resulted in exorbitant rents in all of Abuja's districts. The average yield on rental properties in Abuja is currently 8%.
Despite the high cost of living in Abuja, the commercial hub continues to grow, with numerous enterprises, start-ups, and multinationals experiencing consistent growth in recent years. As a result, demand for investment properties such as office, retail, and industrial properties has remained consistent.
As a result, capital gains on both commercial and residential properties have been increasing for quite some time. It is not unusual for a commercial property to grow at a rate of 5% per year.
3. Port Harcourt
Port Harcourt is known as the Garden City, the Niger Delta's Pearl, and the unrestricted seat of black gold. While it is important to remember that the city is Nigeria's oil capital and the country's third most developed metropolis after Lagos and Abuja, it is also important to remember that it has one of the most developed property markets in the country.
Because of the operations of many international firms, real estate developments are appealing not only to top Nigerian business executives but also to Expatriate Workers, who pay a premium for the majority of the city's luxury constructions.
Port Harcourt, with an IGR of about 117 billion nairas, is only second to Lagos State in terms of real estate potential. With the main city already congested, investors are looking to cash out in a variety of locations, including the Greater Port-Harcourt Area, Peter Odili Road, and Ada-George Road.
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