IMPORTANT NOTICE

Our survey of sales prices of properties and their corresponding rental returns in different parts of the city is sure to intrigue the average real estate investor…

For the purpose of this survey, the property market in Lagos has been classified into four different sections. The upper-class region have areas with property prices in the region of N100milllion and above, the upper-middle class region are areas with property prices in the range of N50million and N99million, the middle-class region have areas with property prices between N21million and N49million, while the budget-class region have areas with property prices from N20million and below. In the upper-class region, our survey of property prices show that properties in Banana Island currently has the best pay-back period in terms of rental income. A 4bedroom luxury townhouse currently selling for N105million has a pay-back period of 10 ½ years with a rental price of N10million per annum, while a 5bedroom semi-detached house selling currently for N220million has a pay-back period of 11years with rental returns of N20million per annum. Following closely is Victoria Island; a 5 bedroom semi-detached house which sells currently for N200million has a back period of 13years with an annual rental income of N15million. On the bottom of the ladder at the upper-class region are properties in Ogudu GRA and Old Ikoyi. A 4bedroom detached house in Ogudu GRA selling for N110million currently has a payback period of 36years with an annual rental income of N3million, while a 3bedroom luxury flat in Old Ikoyi with a price tag of N120million has a payback period of 120years going by its current yearly rental income of N6million. Areas with properties in the upper-class region include, Parkview Estate, Osborne Phase 1 and 2, Nicon Town Estate in Lekki, Adeniyi Jones Street in Ikeja, Ikeja GRA and Shonibare Estate. (See table 1 for details)

A well finished and serviced 8 nos of
4 bedroom flats & servants'
quarters @ AJ Marinho Drive, Victoria
Island. N6m pa/unit (asking)

In the upper-middle class region, Lekki Phase 1 and VGC all had the highest pay-back time in a descending order. A 5bedroom semi-detached house in Lekki Phase 1 with a sales price of N65million and a yearly rental price of N4million had a payback period of 16years and a 5bedroom detached house in VGC with a sales price of N80million has a payback time of 16years with a rental price of N5million per annum. At the bottom of the table in the upper-middle class region are properties in Omole Phase 1 and 2 as well as Ojodu Berger all on the mainland. Currently in Omole Phase 1, our survey shows that a 5 bedroom detached house in the estate has a rental payback period of 32years with a sales prices of N80million and a rental price N2.5million. In Ojodu Berger, a 5bedroom detached house currently has a payback period of 35years with going by its sales price of N70million and rental price of N2million in year. In Omole Phase 2, a 5bedroom detached house currently has a payback time of 50years with a sales price figure of N75million and an annual rental figure of N1.5million. Other areas that had property prices in the upper-middle class region include Nicon Town and Northern Foreshore Estates in Lekki and Gbagada, Amuwo Odofin and Oyadiran Estates all on the mainland. (See table 2 for details)

In the middle-class bracket, Northern Foreshore Estate, Yaba and Lekki Phase 1 all came tops. In Northern Foreshore Estate our survey revealed that a 3bedroom bungalow in the estate has a payback period of 14years with a sales price of N25million and rental figure of N1.8million per annum. Yaba was second on the list as our findings show that a 3bedroom terrace duplex currently has a payback period of 14years with a price tag of N35million and rental price of N2.5million per annum. Lekki Phase 1 was the third on the list as our survey shows that a 3bedroom luxury flat in the estate with a sales price tag of N37million and rental price of N2.5million per annum has a payback period of 15years. At the bottom of the table in the middle class region are properties in Ojodu Berger and Crown Estate. (See table 3 for details)

At the budget-class region, properties in Dolphin Estate and LSDPC Estate in Isolo top the list. Currently, a 3bedroom flat in Dolphin Estate, Ikoyi with a sales price of N18million and rental price of N2million has a payback period of 9years. In the same Dolphin Estate ours survey shows that a 2bedroom flat with a sales price tag of N14million and rental price of N1.5million has a payback period of 9years. At the LSDPC Estate Isolo, a 3bedroom flat with a sales price tag of N4million and rental price of N400, 000 has a payback period of 11years.  At the bottom of the ladder in the budget-class cadre are properties in Thomas Estate and Unity Estate both in the Lekki Ajah axis.
(See box 4 for details)