3 Things To Consider When Buying a House in Lekki in 2022
Greetings friends, this article serves to give you 3 things to consider when buying a house in Lekki in 2022. When buying a house in Lekki there are a lot of factors to account for. This is by no means an exhaustive guide, however it should serve as an important 3 tips.
1. Location heavily affects pricing
A lot of potential buyers might overlook this important aspect when looking to buy a house in Lekki. Property closer to Victoria Island and Ikoyi tend to cost more as these are the most exclusive areas in Lagos. The part of Lekki closest to here is typically considered to be Lekki Phase 1. Most people consider the end of Lekki Phase 1 to be the third traffic light along the expressway; or Freedom way.
After Lekki Phase 1, real estate values on the left hand side of the expressway tend to be more valuable compared to properties on the right hand side of the expressway. The reason behind this is, the right hand side is close to the sea and has a lot of flooding issues. Furthermore, there are a lot of shanty towns on the right hand side as well as undeveloped areas.
After the second toll gate the reverse seems to be the case. There’s a lot of development on both sides of the expressway leading up to Ajah. Property around Orchid Hotel Road and Ikota tend to be mainly residential and relatively undervalued. Prices for housing around these areas usually depend on the estate and proximity from the expressway.
2. Exchange rate inflation
Fluctuating exchange rates directly affect prices of new housing developments in Lekki. Whenever the dollar rate goes up the cost of building materials also surges, as most building materials are not manufactured in Nigeria, the prices of the end product (finished houses and apartments) will also surge. All property developers are developing for profit and will 100% pass on these cost increments to the final consumer.
Year on year exchange rates have not been very favourable to the Naira, and the exchange rate usually surges substantially right before an election. When looking to buy a house in Lekki this year, keep this in mind. If your mode of payment is in Naira you might want to look at making your purchase decision as soon as possible. However, if you’re a diaspora buyer, you can use the exchange rate to your favour. A small exchange rate fluctuation will not affect house prices immediately, so if you time your purchase right you can save yourself a lot of money when you convert your money to Naira.
3. Sundry charges
So when buying a property in Lekki you have to consider the usual sundry charges that come along with doing so. Agency & legal fees are the first two, and will vary depending on the agency or legal chambers. You also have to register your new asset with the Lagos State Land Registry Bureau, and costs vary a lot over here. Furthermore, if you are buying a newly built house you might also need to pay for some extra essentials such as an electrical connection between the house and the pole; or even upgrading water treatment facilities to your taste.