Housing Bubble Lagos Nigeria – The Real Estate Bubble Countdown
Housing bubble Lagos Nigeria - Some people think Lagos Nigeria real estate is at its peak in terms of real estate prices or home values. They think that real estate bubble is building in Lagos and that sooner or later, the bubble will burst and property prices will come crashing down.
For example, as at the time of this writing, the rental price for a 3 bedroom luxury flat in Ocean Parade Towers Banana Island Ikoyi goes for $140,000 U.S. dollars per annum. Two years earlier, the same apartment went for $65,000 U.S. dollars. That is over 100 percent rise in rental price over a two year period.
The recent crash of the Nigeria stock exchange has also compelled many to turn to real estate investing as the sure way to grow their investment. That has pushed the demand for Lagos real estate up and, hence, prices has soared.
Is this a sign of a housing bubble or real estate bubble building in Lagos Nigeria?
While it is true that rental and purchase prices of properties in Lagos has developed a mind of their own and gone wild, it may not exactly translate to a buildup of a real estate bubble.
Viewed from that perspective, a housing bubble is a long way from hitting Lagos Nigeria.
In Lekki phase 1, for instance, some lands go for as high as =130 million Naira (about $1 million U.S. dollars). Some properties in Victoria Island and Ikoyi have a purchase price as high as =N=400 million Naira (about $2.5 million U.S. dollars).
Those prices are frightening. Many fear that Lekki properties are overpriced. And that a housing bubble or real estate bubble may be in the offing.
A real estate bubble or property bubble is bad news. It means that sometime in the near future, real estate prices will crash and that thousands of people will see the value of their investment eroded.
While this is bad news for investors who staked their personal funds on real estate investment, it will be double tragedy for folks who took big loans from banks to invest in real estate.
In simple terms . . . consult a trust worthy real estate agent when buying or letting Nigeria real estate. Together you can look at the opportunities and evaluate where you're likely to get the most value for your money.