Raise the topic of real estate at any gathering today and the question whether housing values are well founded routinely arises.
Generally, most people feel very positive about the housing market outlook, as reflected in the results of a recently reported survey that gauges the mood of people from coast to coast. It found that respondents’ views as to the value of housing are the most optimistic since 2008.
From my perspective, the results of this survey are right on the mark. In fact, it’s easy to see how much of a strong long-term investment real estate represents by taking a look back at how much areas have developed in Nigeria over these past years.
The average selling price for a land in Mowe Ibafo, for example, in July 2004 sales was less than N250,000 — now, a plot sells within the range of N700,000 and N1.5m. Looking back 18 years, to July 1996, the average price was N50,000, reflecting an increase that’s so huge over the years.
While it’s important to note that this isn’t a direct apples to apples comparison — geographic boundaries and the mix of housing types have changed over time — it does illustrate an indisputable truth: a sensible investment in housing provides strong long-term returns.
Reaching even farther back, 48 years, to 1966, the average price for a land in Lekki was less than N5,000 (if we have to put it in account of today’s currency) . Today, a parking space in a condominium around that area can easily sell for more than the cost of a home in 1966.
A home purchased 78 years ago, in 1936, could have been snapped up for about N1,500.
Today of course, those “northerly districts” would likely be considered the highbrow area of our city’s core and the grandchildren or great-grandchildren of a buyer from that era are, in many cases, used to prices closer to tens of millions.
Like any market, housing will experience cycles in which sales and prices wax and wane, but in the long-term the message is clear: making the move to homeownership, regardless of where you choose to call home, has offered extremely favourable results.
In a recent poll conducted by Realtors in the country, 82% of participants agree that real estate is a good investment. And, as I have noted previously, a home is the only investment in which you can live while it appreciates.
To learn more about the many benefits of homeownership, talk to experienced Realtors such as Realty Point Limited, the #SackYourLandlord people, and to stay up to date on the latest market activity, be sure to keep dates with us at Nigeriarealestatehub.com