THE REAL ESTATE INSIGHTS 🏡📚🏡

Lagos is a burgeoning real estate market with varying opportunities and return on investment levels in the different market segments. The residential segment holds the ace, which explains why investors, both domestic and foreign, are playing big in that market. In some parts of this city, property values can appreciate by up to 10 percent annually, especially in rapidly developing zones. However, in more stable areas, the appreciation rate tends to hover around 3 percent and 5 percent, contributing to the overall average. Residential properties typically appreciate by 4 percent to 6 percent annually, but it is a different kettle of fish for rental properties where returns are more attractive, ranging from 6 percent to 8 percent annually. They make the market even more appealing for those seeking rental income and also encouraging more investment in residential properties. Student housing is even more attractive. According to Abayomi Onasanya, CEO, Student Accommod8, returns on purpose-...

VDL refers to the intrinsic value of land that is suitable for development, taking into account various factors such as zoning regulations, location, and market conditions. It serves as a benchmark for real estate professionals when assessing the potential profitability of land investments. By understanding VDL, stakeholders can make informed decisions on purchasing, selling, or developing properties. This concept is particularly relevant in urbanized areas where land scarcity drives up competition and necessitates careful valuation to maximize returns. The Definition of VDL in Property Valuation In property valuation, VDL is often defined as the difference between the anticipated sale price of a developed property and the costs associated with its development, including construction, financing, and permitting. This value essentially signifies how much an investor should be willing to pay for a parcel of land, considering the expected future income it can generate. VDL is not static;...