Why Land Increase In Value By Realtor Ikenna Nwosu 234-8030529372



When people buy land, one of the key expectations is that the land appreciates in value quickly. It all comes down to the age long demand and supply. Often times, people ask why a piece of land become more expensive than another, which was bought same time and amount. Others ask if this is even possible. Is it possible to buy land in location A at N2m and location B at same N2m but after some years the value of land at location A becomes N3m while that of location B becomes N7m? This is the question here.

Yes, it is possible and it is known as the rate of increase in value of land.
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Below are some reasons why two plots of land bought at same amount, time and even same state may have different value appreciation rates. These factors are the key factors property investors look out for.

[b]1. Population Influx around the Locations
Do we foresee more people moving into location A than in location B? Lagos State has a population of about 25 million in population; higher than over 35 African countries including Tunisia, Liberia, Senegal, Zimbabwe and others. If the projected population growth is higher in location A than in location B, then the value of land in location A may increase faster than that of location B. The reason is because the money is in the numbers and the number of the people. Who else have noticed that the most populous cities have stronger economic growth than less populous cites. Value appreciation of land, just like commerce, is tied to population (market) size. A good example is Lagos State, which is about the smallest state in geographical size.


2. Employment Opportunities in the Locations.
Are they any industrial or infrastructural projects going on in Location A which can employ a lot of people? Migration is as old a humans. People always move to the direction of survival. To survive, people need food, shelter and a host of others which are provided by earning opportunities of employment and business. If location A provides more current and potential employment opportunities than location B, more people will move towards location A. A direct impact of that will be on demand for housing, causing the value of land to increase in location A.


3. Rate of Infrastructural Development in the Locations.
What are the government infrastructural development plans in the in Location A versus Location B? If location A has more ongoing and future infrastructural development in Location A than in Location B, then the value of land in Location A will increase faster than in Location B. Not just value of land but also lease cost for accommodation and other commodities.


4. Cost Versus Growth.
What is the Cost versus Growth trend in Location A and Location B? Land in a location may be expensive but has a slow rate of value appreciation while another location may be less expensive but has higher rate of value appreciation. As a property investor and real estate professional, we must understand the difference between the value and value appreciation of a property. Saturated property locations like city centres may have a very high value but not a fast value appreciation. A good example is Ikoyi and Ibeju-Lekki in Lagos State. While land in Ikoyi is very high in terms of value and land in Ibeju-Lekki is not as high, the rate of land value appreciation is likely to be faster in Ibeju-Lekki than in Ikoyi.


5. City Centre Push Effect.
City centre push effect is the growing preference of suburbs of city centres due to high cost of land and accommodation. Basically, the value of land and accommodation gets high in city centres like Victoria Island and Ikeja, pushing or forcing the public to opt for adorning locations like Lekki and Ajah for Victoria Island and Ipaja and Ojota for Ikeja. Land in the city centres are usually more expensive than in the suburbs. Due to the high cost of living and accommodation in the city centres, the nearest suburbs gets the push effect. So people are pushed to the closest suburbs. Is this the case with location A? Land in Location A which is a suburb of city centre appreciates faster in value in due to city centre push effect.


Considering these five factors above, Ibeju-Lekki, Lagos is arguably the location with the fastest rate of land value appreciation in the world, today. This is not unconnected to the presence of the below verifiable projects in Ibeju-Lekki.


1. Lekki Free Trade Zone
2. Lekki Deep Sea Port
3. Dangote Petroleum, Chemical, Cement, Fertilizer Industrial Complex and Private Jetty.
4. Lagos Smart City Project
5. New Lagos International Airport
6. Fourth Mainland Bridge
7. Six Land Lekki Costal road connecting Victoria Island to Ibeju-Lekki on one hand and on the other, Akodo, Ibeju-Lekki, Lagos to Araromi, Ilaje, Ondo State.
8. PAN Atlantic University main campus, an extension of the globally renowned Lagos Business School.
9. Eleganza Industrial Complex.
10. Several residential estates and land ownership opportunities in the residential segments of Ibeju-Lekki.


The money is in the numbers and the numbers are people. People always move towards employment opportunities. This is why and how land value appreciates. It is always tied to the people.


I hope this helps. Please leave some feedback.


Realtor Ikenna Nwosu
+234-8030529372
Real Estate Champions REC
recnig1@gmail.com
Instagram - @recnig
Twitter - @recnig
Facebook - @recnig

Ikenna is a passionate real estate professional who runs a successful property consultancy company and other businesses in Nigeria. He regularly writes on global real estate markets

When people buy land, one of the key expectations is that the land appreciates in value quickly. It all comes down to the age long demand and supply.

Often times, people ask why a piece of land become more expensive than another, which was bought same time and amount. Others ask if this is even possible. Is it possible to buy land in location A at N2m and location B at same N2m but after some years the value of land at location A becomes N3m while that of location B becomes N7m?

This is the question here.

[b]1. Population Influx around the Locations
Do we foresee more people moving into location A than in location B? Lagos State has a population of about 25 million in population; higher than over 35 African countries including Tunisia, Liberia, Senegal, Zimbabwe and others.

If the projected population growth is higher in location A than in location B, then the value of land in location A may increase faster than that of location B. The reason is because the money is in the numbers and the number of the people.

Who else have noticed that the most populous cities have stronger economic growth than less populous cites. Value appreciation of land, just like commerce, is tied to population (market) size. A good example is Lagos State, which is about the smallest state in geographical size.

2. Employment Opportunities in the Locations.

Are they any industrial or infrastructural projects going on in Location A which can employ a lot of people? Migration is as old a humans. People always move to the direction of survival. To survive, people need food, shelter and a host of others which are provided by earning opportunities of employment and business.

If location A provides more current and potential employment opportunities than location B, more people will move towards location A. A direct impact of that will be on demand for housing, causing the value of land to increase in location A.