Number one is demand- The rate of demand will have to come first before any other considerations since the law of demand states that ” an increase in demand leads to an increase in price” this is the reason why it may cost a young man almost N450,000 to be able to settle down in a nice apartment in Lagos (even if that amount may only afford a self con or bed sitter)
My dear, i will like to tell you that the reason why people will want to relocate to a place is its nearness to his/her place of work and the nature of Economy in the city, Cost of living and the cost of housing.
In Nigeria three cities will come into the mind of those looking for a place to settle and these cities may include Lagos, Abuja and Port Harcourt.
However, the cities listed above are not the only ones with Good homes or Good living conditions or better places of work as there are other cities where the cost of living is very low like (Onitsha, Awka, Umuahia, Warri, Asaba, Kwale, Jos, Kano, ETC)
Accessibility to a town can also determine the real estate growth in a city. This is why towns in Bayelsa state may not attract real estate growth despite being very rich in oil and this is because the state is largely a water locked one (having a large part of it occupied by water) since all movements will have to be made through water.
Availability of land and materials needed for construction will also affect Real Estate Growth though this is not as important as other considerations and this is because when the materials needed to build an estate or a house are available and at a reduced cost, then the chances of investment in the area will be high.
Cost of Construction in a place. Where materials and cost of construction is low and accessible then real estate will likely thrive in such places because the investors are out to invest and make profit so, where the needed capital is low with the probability of high profit, they are willing to go.
Capital generation of a town will also determine how real estate will thrive in such areas.
Increase in economic growth will also make real estate to be attractive in a town.
Influx of human traffic to a place will definitely drive real estate to a full profit making investment
Attraction to investors will also determine how real estate will be profitable in a town.
Absence of good residential buildings will make the good and new ones to be very desirable to the populace.
Availability of mineral resources.
Availability of infrastructural resources.
Availability of transportation resources like airport, train stations sea port e.t.c
Availability of communication facilities.
Good government policies and regulations-Lagos and Abuja will come to mind in this case, recently houses are being demolished in Lagos
because of improper government permit before construction. New investors are now more careful and afraid to build because of fear of demolition.
Getting the permit on itself is very difficult at present because of the bureaucracy involved.
Availability of natural resources.
Is the town transitory? Hotel will be good for such areas.
Does it have plenty of government parastatals? with this you can be sure of growth in such area.
War and trouble will definitely affect real estate negatively.
Good climate Going by the points stated above, Abuja, Lagos and Port Harcourt will beat the rest in Nigeria, but they also have advantages and disadvantages too. Abuja is good for hotels, for low income earners you can build hostels as common in Europe.
Political meetings will always be held in Abuja and anytime there is a big program the hotels are always completely booked. But Abuja has developed to a very high rentage zone and total separation of the rich neighborhood from the poor neighborhood will at the long run not help the real estate industry there, that is why there are uninhabited houses yet people are going far to the suburb to live in slums. But in Lagos, in every rich area, very close by you will see poor neighborhood zone, this helps to create spillovers from rich neighborhood.
So if you are an investor you can just get properties close to these rich areas redevelop and clean up the place then you can have the affluence of your neighbor rubbing off on the properties in the poor neighborhood though very close to the rich.
Lagos has very high rate of human traffic and influx of graduates from other states will always make it very attractive for real estate, Port Harcourt despite the kidnappings is the unofficial capital city of Niger Delta the oil rich region, so expatriate are always attracted to the place, there you are sure to make very quick and profitable investment.
In conclusion, economy is the chief driving factor of a real estate investment in an area and for Nigeria, Port Harcourt and Lagos towers above the rest. So if you are planning to invest in real estate in Nigeria, feel free but you must make sure that you are making the right contact as fraudsters are everywhere looking for whom to devour.
You can always contact me on +23407035528329 If you need more advice on property acquisition in Nigeria.