Nigeria's Top Residential Locations and what is making them alluring for HNIs

Nigeria's Top Residential Locations and what is making them alluring for HNIs

Nigeria's Top Residential Locations and what is making them alluring for HNIs

12th September, 2022

4 minutes, 52 seconds read

It is no news that the residential housing landscape varies largely across the country. Though Nigeria has remained a low-income country since its independence in 1960, its residential market accommodates projects across all residential classifications with a reputation for hosting some of the world’s most expensive estates. In different buckets across the country, one can find residential estates that cater to the affordable, middle-income, deluxe, luxury and even ultra-luxury segments of the market. What is even more interesting is that Nigeria’s ultra-wealthy locations have consistently made it to the global radar of high-end residential markets, becoming case studies for major real estate teaching institutions across the world, including the University of Reading and Havard Business School. We did a deep-dive on 5 of Nigeria’s ultrawealthy projects, and their allure to investors. 

➢     Rent and sales prices of apartments across Nigeria's ultra-wealthy neighborhoods are typically priced in dollars.

➢     Banana Island in Lagos and Maitama in the FCT, Abuja, houses Nigeria’s top 1% and are reputable for being the playground of High Networth Individuals, Expatriates and Nigeria’s Political elites.

➢     Estates in the top 1% category enjoy rare design and functionality privileges including underground power systems, sewerage and security.

NAF Harmony, the restrained zone for the wealthy in Port Harcourt 

Harmony Estate in Port Harcourt is developed by The Nigerian Air Force Housing and Construction Company Ltd (NAFHCC), a subsidiary of the Nigerian Air Force Holding Company (NAFHC). NAFHCC according to the Nigerian Airforce was set up to provide ‘’affordable post-service houses that are decently finished, functional and accessible to the personnel of the Nigerian Air Force’’  

To date, NAFHCC has built 5 other estates in other parts of the country, including NAF Valley Estate in Asokoro among others. Projects by the NAFHCC are typically 60% occupied by Air Force officers, while 40% are made available for the general public, who are mostly top government officials and expatriates.

The Harmony Estate stands out among other projects in Porthacourt in many ways and is reputed to be one of the most conducive, secure neighborhoods in Port Harcourt with uninterrupted power supply. The average price of a parcel of land in Harmony Estate is ₦133,000 per square meter. The average rental and sales price of a 5-bedroom house in the estate stands at ₦5,000,000 annually and ₦250,000,000 respectively. 

Maitama, the Playground of Abuja’s ultra-wealthy 

The Maitama District is situated in the North-Eastern part of the Abuja Municipality and is bordered to the South by Aguiyi Ironsi Road and to the North by Murtala Mohammed Way. The area is known for its expansive luxury homes that are also notoriously pricey. Despite the investment requirements, Maitama has a good blend of mixed-use with a lot of commercial activity in squares and independent stores, especially along major streets like Gana Street. Several government parastatals including the Nigerian Communications Commission, National Universities Commission (NUC), Independent National Electoral Commission (INEC), Central Affairs Commission, and National Youth Service also have their headquarters in this region.

A few European and Asian embassies, like those of Spain and Belgium, are also located there. Due to its exclusivity, Maitama is notable for being the playground of the ultra-wealthy people in Abuja who buy apartments and houses there. A notable attraction for rich people in Maitama is the IBB International Golf and Country Club located inside the exclusive Maitama Avenue. The most expensive location in Maitama is the Madeira estate, formerly Shell Imani. The average price of land in Maitama is ₦347,000 per square meter. The average rental and sales price of a 5-bedroom house in the estate stands at ₦18,000,000 annually and ₦455,000,000 respectively.  

Asokoro, the rich kids’ domain 

Maitama is another upscale residential location in Abuja that is notable for housing the presidential villa. The region has a mix of residential and commercial usage zones and is home to important landmarks like the World Health Organization, the National Intelligence Agency (NIA), the secretariat of the Economic Community of West African States (ECOWAS) and the ECOWAS Park.  

High net worth individuals and government officials live in this neighborhood reportedly because of its reputation for security. Its western, southern, and northern boundaries are the Central Business District, Garki Phase 2, and Maitama, respectively. Like Maitama, properties in Asokoro are expensive and typically priced in dollars. The average price of land in Asokoro is ₦142,000 per square meter. The average rental and sales price of a 5-bedroom house in the estate stands at ₦11,000,000 annually and ₦350,000,000 respectively. 

Victoria Island, home of the much-revered Eko Atlantic City 

Some of Nigeria's highest-calibre residential developments are located in Lagos's upper-middle-to-high-income suburb, Victoria Island. In addition to numerous streams and lagoons, it borders the Atlantic Ocean in the south, giving several neighborhood projects a view of a lagoon. An upscale neighborhood with easy access to Ikoyi, Lagos Island, and Lekki Phase 1 is Victoria Island. Several embassies are located in the region, which is the main business centre of Lagos.  

Numerous national and international organizations and companies also have their headquarters here. Major commercial developments in Victoria Island include the Nestoil Tower, Churchgate Tower, and Standard Chartered Bank HQ Building, among others. A few sizable leisure and hospitality complexes also include the Twinwaters entertainment Center, Four Points by Sheraton, and the well-known Eko Hotel and Suites. Recently, the area has gained even more prominence, being the home of the popular Eko Atlantic city. The average price of land in Victoria Island is ₦500,000 per square meter. The average rental and sales price of a 5-bedroom house in the estate stands at ₦10,000,000 annually and ₦300,000,000 respectively. 

 

Ikoyi, more specifically, Banana Island 

Ikoyi, the wealthiest district in Lagos, and arguably the entire country is primarily populated by high-net-worth individuals, including politicians, corporate executives, and foreign nationals. It is the location of some of Nigeria's finest business, hotel, and residential structures, including 4 Bourdillon and the upcoming Cuddle project. Across all property typologies, Ikoyi is notably pricey, making it a location that only the ultra-wealthy in Nigeria can afford. 

Ikoyi's residential developments are frequently valued in US dollars, and some of the most well-known in the neighborhood include Cuddle by Cadwell, No. 4 Bourdillon, Tango Tower, and The Ultimate Apartments. Most importantly, however, Ikoyi also houses Banana Island, Africa’s most expensive residential estate. Based on data that we have on BuyLetLive, the average price of land in Ikoyi is ₦950,000 per square meter. The average rental and sales price of a 5-bedroom house in the estate stands at ₦25,000,000 and ₦800,000,000 respectively. 

Would you like to sell, or rent your property faster and at no marketing cost? Login to BuyLetLive.com to create a free account and generate leads for your projects.



Share:

Related Posts

5th October, 2022

3 minutes, 7 seconds read

Top 3 locations to live as a young family in Lagos

The factors that people consider when deciding on where to live vary with the different stages of life of the individual(s) involved. Things like cost, taste and fashion, proximity to work and family e.t.c are top on this list of factors depending o demography, income level and lifestyle. For instance, the availability of clubs, restaurants and other lifestyle amenities, maybe a major consideration for a young person who enjoys nightlife. On the other hand, a 70-year-old retiree would most likely be more concerned about living in a safe neighbourhood with quality healthcare facilities.  

There are many things to think about and prioritize when choosing a place. Typically, your commute time and, ultimately, the quality of life for you and your family, are influenced by where you reside. Some factors are more readily apparent than others. For young families, figuring out where to live and raise children, especially in “the busy Lagos” can be challenging. We have considered a number of factors, including the availability of quality schools, recreation and health facilities, among others and have profiled the best 3 locations to raise a family in Lagos. While there might not be a perfect location that satisfies all of your demands, hopefully, these suggestions will help you make an informed choice that is right for you.

Lekki Phase 1

Lekki Phase 1 emerged as the number one young-family-friendly location in Lagos State. Historically, Lekki Phase 1 has built a reputation for housing some of the best schools, hospitals and recreation centres in Lagos. Towards the end of 2021, Edusko, an education marketplace did an analysis of top schools in Lagos based on their performance in the international and national examinations, performance in both local and international competitions (academic and extracurricular), as well as their alumni achievements in recent years. Based on the analysis, Lekki Phase 1 houses 31% of the schools that fall within the top 25 schools in Lagos. With respect to healthcare, Lekki Phase 1 is also home to approximately 13% of the top 25 hospitals that we profiled in Lagos. Additionally, Lekki Phase 1 also has more than 20% of family/kid-centric recreation centres in Lagos including Upbeat and Fun Factory.

Ikeja GRA

Coming second on the ranking is Ikeja GRA. The Government Reserved Area is particularly notable for housing some of Lagos’ best hospitals and clinics, including the recently launched 72-bed Duchess Hospital on Joel Ogunnaike Street. Other notable hospitals in the neighbourhood include Reddington Hospital, Eko House Hospital, and Genesis Specialist Hospital, among others. Based on our analysis, Ikeja GRA is home to 12.5% of Lagos' best schools, 25% of the State’s best hospitals, and up to 20% of the City’s best recreation centres. Outside its serenity and good road network, Ikeja also has the most family-friendly restaurants, grocery stores and a lot of fun places for you and your young family to bond.

Ikoyi

Ikoyi is notably expensive, but if you are looking for a place where your kids can meet the children of the big wigs in society, then it might just be the best place. Gleaning from our analysis, Ikoyi emerged as the 3rd best location to raise a family in Lagos. With 9.4%, 12.5% and 20% of the best schools, hospitals and recreation centres respectively located here, Ikoyi is an ideal location to raise kids, with a quality of life that is almost at par with what you will find in some of the most advanced cities around the world. 


Closing thought

Barring concerns about high rental/property value, and some other personal nuances, Lekki Phase 1, Ikeja GRA and Ikoyi are the top 3 locations to raise your family in Lagos. In the end, the location you choose will be the one that checks off enough of your own requirements. Having said that, we hope that some of the three factors we've outlined in this piece will be helpful to you the next time you're trying to pick where to reside.

If you are looking to rent or buy an apartment or get a shortlet, go to BuyLetLive.com and find properties that meet your requirements. If you are an agent, developer or landlord, visit the signup page on BuyLetLive.com to create an account and advertise your properties.

We like to hear from you. Send us your comments to research@buyletlive.com and follow us across all our social media pages to keep updated.

26th September, 2022

2 minutes, 52 seconds read

Surging Inflation and how it is impacting the Lagos Residential Rental Market

In the last 12 months, Nigerians have referred to the economic situation as very daunting, especially for new renters in Lagos. With inflation surging over 20% in August 2022, the economic climate has not been very favourable for most low to middle-income earners in Nigeria. As the rising cost of goods and services continues to drive people to spend more in exchange for fewer items, Nigerians are constantly looking out for opportunities to cut down their expenses. 

One way we have seen this play out is in regard to new leases. Over the last half year, our interaction with real estate agents in Lagos has shown that existing tenants who before now considered moving to new apartments are reconsidering. The reasons for this move seem obvious. Cost! When we dug deeper, we found out that moving at this time can cost you almost twice what it will take to continue in your current space, and prospective renters have come to this realization. But why is this?


Rent has surged over 20% in the past 12 months.

If you are looking to rent a new apartment, it is most likely that you will spend 20% more for the same type of apartment in the same location than you would have one year ago. For tenants who have stayed long in their old apartment, the percentage increase will likely be more than that. Where the apartment is newer, especially with modern amenities, the additional premium being charged by Developers and Landlords can go as high as 30% or more depending on the location. When considered holistically, this additional rental burden is a major discouragement for people looking to relocate or move into newer apartments.


Agency commission, legal fees and caution deposits can cost as much as 50% of the rent.

In most parts of the world, traditional estate agents' fees range from 0.5% to 5%, depending on the value of the transaction and negotiating power of the parties. In the UK for instance, the range is 0.75% to 3% according to MoveWise, a UK-based real estate advisor. In the US, the commission is usually between 4% to 6%. Across most African cities, the percentage is higher and can range between 5% and 10%. We have found that for residential rentals especially of less than 10m value, most agents usually insist on a 10% agency commission. In some locations around Lagos, they can go as high as 20% for rental properties of less than a million. In addition to this, a 10% legal fee is usually mandatory, and some landlords can charge as high as 20% extra as a caution deposit. The impact of this is that it shoots up the total amount that prospective tenants end up paying for new leases, and has been a major discouraging factor for most prospects.


The additional hassle of moving and settling in can be very daunting in busy Lagos

Relocation costs can make things worse, but outside the financial cost, the hassle that comes with it wears out quite a number of people. Based on a sample relocation cost quote we got from Packmyload and a number of other Nigerian-based logistics companies, it costs a minimum of 150,000 to move furnishing items in a 2-bedroom apartment in Ikeja to Lekki Phase 1. Judging from the average rental price data that we are currently tracking Lekki Phase 1, this means that a prospective renter will need to pay between 5% and 10% of the rent on logistics.


Closing thoughts.

When considered individually, these costs may be insignificant but can sum up to almost the same amount that a prospective tenant is paying as rent, or even more. What has been your experience with renting a new apartment in Lagos? Share with us by sending a DM or commenting on our social media handles. 


If you are looking to rent or buy an apartment or get a shortlet, go to BuyLetLive.com and find properties that meet your requirements. If you are an agent, developer or landlord, visit the signup page on BuyLetLive.com to create an account and advertise your properties.