n3xt:


If rent is as cheap as 350k, it makes no financial sense to buy a land and build any type of house there. You won’t recoup your investment in 2 decades even if the rent is increased by 300%.

I once lived in an estate where you pay N2m/ annum to rent a 2 bedroom BQ and 1000sqm land is sold N45m within the estate.
We also pay as much as N7m / annum (and even far more) to rent duplexes in some location in Lagos.

If it’s an industrial area, the price 100m/plot is still cheap compared with what’s obtainable around here.

Instead of investing in such area, a wise investor will look for land in neighboring communities and buy land at cheap price to develop residential projects.
If however, the plan is to flip lands - it’s a wise decision in my own opinion.

My brother, wetin dey inside bottled water,when i will still come back home to drink sachet water

n3xt:


This is more like it. 5 - 7 years and you can go to sleep.

By the way, those areas aren’t ordinary sir

I'm just trying to be modest.

There's really no 'ordinary' place in Lagos anymore.

A friend who states around Ahmadiyya says he's paying ₦400,000 as rent and I'm like really? In that far place that's close to Sango (Ogun State)

Rent is going up.

Ifako Gbagada, Soluyi etc now commands close to ₦1m annual rent on 3 bedroom apartment.

Rent now is something else.

Maybe not commercial, but residential rent is going up in Lagos.

In one of those LSDPC estates in Meiran, you can get a flat for ₦3.5m and rent at at ₦350,000 per annum. ₦3,500,000/₦350,000 =10% yield. Even Treasury bills can't give you 10% now that rates have been falling

I have been to Nnamdi Azikiwe University, Nnewi. On leaving the campus I asked my colleague the estimate of land properties around the institution, I can recall he said I should forget it that it's an 'expensive' question.

Personally, I know an Nnewi man resident in Port harcourt that owns 2 plazas of 2 and 3 stories each yet he rides a 'ladies' bike. He converted the entire ground floor of one of the plaza to a warehouse for fasteners and industrial power tools. You see different students going there for IT. The man isn't even educated. I see Nnewi people as 'industrialists'.

diordaves:


I understand clearly this line of argument you and michlins are putting forward. It is not hyping Nnewi. It is the statistical fact. This is called localisation of industry in elementary economics. You want to site your industry where the amenities and market are.

The land prices are driven by the need for industry and manufacturing. Built up industrial plots are priced higher, so Nnewi industrialists see each plot as a potential industrial/manufacturing plot.

People should understand that it is not always residential, there is industrial element as well. If you don't understand this, you will be thinking 100m for a plot is not economical. It is economical. Get a plot for 100m, build your industry for 300m for example, that is 400m investment. Your first year of trading (goods), you will get that money back. The industrialists know this, so they are ready to cough up good money for industrial plots.

People say I will use that money to buy two houses in Lagos for example and rent. It's all about ROI. This is not appreciating land economics. The ROI for top notch industrial complex will always be higher for a corresponding residential property.

Take Agbara in Ogun State for example, a residential plot in the area is on average 1.5m but in Agbara Industrial Estate, the situation is different. Same in Apapa, Ikeja etc.

it's not only that, the importers need warehouse for their goods and they need a place very close to the Nkwo Nnewi market. Lots of factors are affecting the insane prices people pay for lands.

You also need to know this,an average person in Nnewi of about twenty years will sell his inherited land and then travel to Lagos or anywhere else and spend like ten years. He will come back and then ready to buy back that same land no matter the cost. It's only then he can tell his peers that he arrived as a "big man".

davodyguy:

Return on investment in Lagos can't be compared with that of any other state in Nigeria, save FCT.

The rate at which rent is going up in Lagos says it all.

If you spend ₦50m on a property in ordinary Ketu or Surulere, you can recoup your money within 5-7 years from annual rent collection

Point of correction Surulere is not ordinary in lagos ooooo, in FCT na those politician and high earned civil servant make life had for ordinary people

davodyguy:

I'm just trying to be modest.

There's really no 'ordinary' place in Lagos anymore.

A friend who states around Ahmadiyya says he's paying ₦400,000 as rent and I'm like really? In that far place that's close to Sango (Ogun State)

Rent is going up.

Ifako Gbagada, Soluyi etc now commands close to ₦1m annual rent on 3 bedroom apartment.

Rent now is something else.

Maybe not commercial, but residential rent is going up in Lagos.

In one of those LSDPC estates in Meiran, you can get a flat for ₦3.5m and rent at at ₦350,000 per annum. ₦3,500,000/₦350,000 =10% yield. Even Treasury bills can't give you 10% now that rates have been falling

Commercial rent too.... as at 2014, I was paying 750k for a 17sqm shop in Lagos (this excludes service charge).

I was surprised when I visited a mall in Ibadan and they told me N2m for almost 100sqm +.

michlins:
it's not only that, the importers need warehouse for their goods and they need a place very close to the Nkwo Nnewi market. Lots of factors are affecting the insane prices people pay for lands.

You also need to know this, an average person in Nnewi of about twenty years will sell his inherited land and then travel to Lagos or anywhere else and spend like ten years. He will come back and then ready to buy back that same land no matter the cost. It's only then he can tell his peers that he arrived as a "big man".

We know this.

Godisgreatest1:
I have been to Nnamdi Azikiwe University, Nnewi. On leaving the campus I asked my colleague the estimate of land properties around the institution, I can recall he said I should forget it that it's an 'expensive' question.

Personally, I know an Nnewi man resident in Port harcourt that owns 2 plazas of 2 and 3 stories each yet he rides a 'ladies' bike. He converted the entire ground floor of one of the plaza to a warehouse for fasteners and industrial power tools. You see different students going there for IT. The man isn't even educated. I see Nnewi people as 'industrialists'.

I know one man that trades on car filters in Nkwo Nnewi. Hé has properties from Nnewi to Port Harcourt to Lagos. Hostels l, residential homes and empty plots of lands yet he rides old motorcycle while the wife drives a corolla. This man dey wear same sneaker from year to year

kopell:
Point of correction Surulere is not ordinary in lagos ooooo, in FCT na those politician and high earned civil servant make life had for ordinary people

As far as in me lies, Lagos remains the capital of Nigeria.

spyder880:


In business, its all about location. You might want to site your factory in an area where the raw materials, other factors and sales outlets are arranged in a single point. Nnewi imports and offloads, they also arrange exports from there. Vehicles come in from neighbouring countries to buy stuff in Nnewi.
So you see that you can benefit from group arrangements and from other customers coming to buy from Nnewi also buying your stuff because of proximity. The only reason why most big companies in Anambra are not in Nnewi is because of scarcity of lands.

I beg to differ. I consider strategy and packaging to be more important in business. I grew up in Onitsha and the reason most people travel outside to get what they want is because it has been packaged and sold to them at a price that location at some point becomes irrelevant. I get your point. The only thing that's stalling people building companies in more than one place is because we're Nigerians. And then things like good road network and the rest fail most start up and entrepreneurs.

What brought this topic is getting approval for building a house? You have knowledge of it as someone who have experience building houses in southeast especially Awka and Onitsha.

spyder880:


I also happen to know Nnewi, as I go there to buy things and I have friends from there. Please do not mind the seeming chaos in the market areas of Nnewi, there is no more land for sale as the population looking for good lands are so much, fuelling scarcity and this has greatly increased cost of lands.

There are numerous billionaires from that same Nnewi, all looking for more lands to expand their businesses, they will not bat an eyelid to buy lands at over N100m for one plot.

Is Nnewi lands too expensive? Yes.
Are they worth it? Yes.
Will I buy it or advice others to buy at those high costs? Yes.

Costs are high or low because people had factored the immediate and future developments in the town into consideration. Nnewi lands are set to get much more expensive as more people continue into mass production of goods and services. Nnewi is a business area and many people reap their profits in a short time.

Bearing this in mind, Nnewi is bound to expand into the neighboring communities in the coming decades, just as Onitsha did. It is inevitable.

michlins:
let me tell you,ozubulu is a very close town to Nnewi like they're neighbors. You can get a plot for 6ml in a very good location there but no, people will prefer to pay more for Nnewi lands.

Talking about that, Ibeto bought and fenced more than 50 plots of land at Awka etiti just a town close to Nnewi. No one knows what he plans on doing there but trust Nnewi people, the whole lands around there are now premium. You want to buy land close to Ibeto property, you have to pay premium for it. E no easy but that's

So I am paying because I am buying a land close to Ibeto. I don't have the mentality that my destiny or growth is tied to anyone. If he decides to build an industry for production there and you have other plans, what happens then? This is following the crowd. Sometimes it pays off, other times it is really stupid.

michlins:
I know one man that trades on car filters in Nkwo Nnewi. Hé has properties from Nnewi to Port Harcourt to Lagos. Hostels l, residential homes and empty plots of lands yet he rides old motorcycle while the wife drives a corolla. This man dey wear same sneaker from year to year

We know this too.

I did a build for an Anambra man. He bought about 27 tons of iron rods just for foundation if a 4 bed duplex and 2 bed flat.

If I ask him for any materials, he’ll just put a call to one of his boys “Obinna, bring one trailer of binding wire ”

The man live in a very terrible house in Akoka Lagos and has no car.

_____

I concur the guys from that area are big spenders when it comes to real estate in Nigeria but they do it mostly for the fun of it. The money dey ground!!

whirlwind7:


Bearing this in mind, Nnewi is bound to expand into the neighboring communities in the coming decades, just as Onitsha did. It is inevitable.

That’s why I’m going to invest in the neighbouring communities. The billionaires will buy from me in not too distant future.

Jasobry:


If I'm to add my one Kobo... The simple truth is that there are no more lands at nnewi.eveb anambra state as a whole is having similar challenges. The billionaires are doing what we call akuluono. Remember records have it that nnewi have the highest numbers of billionaires.

My friend who is from Nnewi has no plot allocated for him from his ancestors, his whole community has no lands anymore and so with all his siblings and cousins. He has to go and look for lands at any cost if he will build anything in his home town. He is willing to pay any amount to build within Nnewi.

The akuluouno strategy is also putting a huge squeeze on many lands, especially in Anambra state, Anambra people has thus invaded many other neighbouring and not so neighbouring states to buy up available lands in huge quantities. I know many bush areas of Enugu, Ebonyi and Imo state already bought and documented by Anambra people. They usually buy 100 - 200 plots or even more.

raymondFirstborn:


No one is scaring anybody here.
I hope you know average finishing consist of pop ceilings, wall screeding , china tiles, cabinets, Aluminum casement windows, flush doors, electrical and plumbing fittings.

NB:
Average finishing doesn't mean low income o

Average finishing is different from low income finishing with asbestos and pvc ceiling board.

Interested in your input here, is this average finishing?. From the picture of the room, i would say yes.. but it appears average differs from person to person.

So pls spyderman, skinmanshi and other builders, what amount should 1 expect to spend to finish a 5bd rm duplex on flat solid ground.

2ndly what would the carcass cost be?

https://www.kobocity.com/d/12-show-us-your-facade/15

BrabusNG:


That’s why I’m going to invest in the neighbouring communities. The billionaires will buy from me in not too distant future.

For a non Igbo, that's ambitious.
Thought you folks are scared of coming into Igbo land

Still, it is the reason I made that post. If lands withing Nnewi are selling for such huge amounts, then it makes great sense to invest in it's neighboring communities.
How much does land sell in Banana island again? Nnewi has almost rivaled it!

Ndyoo:


I beg to differ. I consider strategy and packaging to be more important in business. I grew up in Onitsha and the reason most people travel outside to get what they want is because it has been packaged and sold to them at a price that location at some point becomes irrelevant. I get your point. The only thing that's stalling people building companies in more than one place is because we're Nigerians. And then things like good road network and the rest fail most start up and entrepreneurs.

What brought this topic is getting approval for building a house? You have knowledge of it as someone who have experience building houses in southeast especially Awka and Onitsha.

I have built in both Awka and Onitsha, which do you want information about?

spyder880:


I have built in both Awka and Onitsha, which do you want information about?

Onitsha... Thanks for your information in advance!

Ndyoo:


So I am paying because I am buying a land close to Ibeto. I don't have the mentality that my destiny or growth is tied to anyone. If he decides to build an industry for production there and you have other plans, what happens then? This is following the crowd. Sometimes it pays off, other times it is really stupid.

if Ibeto decides to build a factory there and you happen to have an empty land there, you're made immediately. You don't need to build anything there are to sell it on premium. From the expatriates that will work there to people who will want to own a by industry that will supply to Ibeto or allied firms. You guys don't understand the need for such

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BrabusNG:


That’s why I’m going to invest in the neighbouring communities. The billionaires will buy from me in not too distant future.

exactly. Some people are in the "waiting business" of real estate. When I say "waiting business" I mean eh, they can buy a land from a desperate person for cheap and then wait for fives years or less to flip it for about 300%. You don't need to invest a dime except to fence and add gate. That's all and you recoup your funds.

Another factor pushing the demand for lands is lack of education and knowledge. A person left his papa house at thirteen years and before twenty, he's already a millionaire. His Oga wet teach him is buying and building residential homes and collecting rents. He has about #15ml to #30ml sitting idly in account. His next line of investment is to follow his Oga into same. After all "container na abata" every month. He doesn't need to recoup the money he invested in his first build to venture into another. He just doing what his Oga and every other big man he knows is doing

Ndyoo:


So I am paying because I am buying a land close to Ibeto. I don't have the mentality that my destiny or growth is tied to anyone. If he decides to build an industry for production there and you have other plans, what happens then? This is following the crowd. Sometimes it pays off, other times it is really stupid.

That "other plans" you had for the land, is it inflexible?
The beauty of landed property is that it could be modified for any purpose.
If Ibeto sites a factory there, and you were hoping to build a residential property, does that make your land lose value? Of course it doesn't!
You simply modify your plan to suit the environment. You might decide to build a warehouse on the ground floor, and then commercial (office spaces) on the top floors.
Those offices can be used for anything from banks to hospitals to supermarkets to hotels.

See, government is the major drive for virgin properties to gain values by putting structures in place. Nigerian govt has largely failed in that aspect. The next best thing to govt especially in Igbo land is the major players such as industrialists like Ibeto.

The most important thing is, get that land first. Once you see an "nnukwu mmawun" taking an interest in a certain location, you lose nothing by tagging along if you got the funds.
That is exactly how Dangote drove up property prices at Ibeju Lekki when he decided to site his refinery there.
That single step alone gave birth to many people who registered and established property estate companies with Ibeju Lekki as their first foray into the real estate market.

whirlwind7:


That "other plans" you had for the land, is it inflexible?
The beauty of landed property is that it could be modified for any purpose.
If Ibeto sites a factory there, and you were hoping to build a residential property, does that make your land lose value? Of course it doesn't!
You simply modify your plan to suit the environment. You might decide to build a warehouse on the ground floor, and then commercial (office spaces) on the top floors.
Those offices can be used for anything from banks to hospitals to supermarkets to hotels.

The most important thing is, get that land first. Once you see an "nnukwu mmawun" taking an interest in a certain location, you lose nothing by tagging along if you got the funds.
That is exactly how Dangote drove up property prices at Ibeju Lekki when he decided to site his refinery there.
That single step alone gave birth to many people who registered and established property estate companies with Ibeju Lekki as their first foray into the real estate market.

this is the thing some don't understand

kopell:
Point of correction Surulere is not ordinary in lagos ooooo, in FCT na those politician and high earned civil servant make life had for ordinary people

Abuja gained from being the capital and because of corruption, when some 'steal' they use the money to buy properties instead of keeping in bank's.

By the time you audit most of the houses in Maitama, Wuse 2, Asokoro, one should not be shocked if They belong to politicians

michlins:
if Ibeto decides to build a factory there and you happen to have an empty land there, you're made immediately. You don't need to build anything there are to sell it on premium. From the expatriates that will work there to people who will want to own a by industry that will supply to Ibeto or allied firms. You guys don't understand the need for such

No, he isn't looking at the possibilities you pointed out

michlins:
if Ibeto decides to build a factory there and you happen to have an empty land there, you're made immediately. You don't need to build anything there are to sell it on premium. From the expatriates that will work there to people who will want to own a by industry that will supply to Ibeto or allied firms. You guys don't understand the need for such

Out of curiosity, is Ibeto richer than Dangote? Or is the auto plant larger than the Dangote refinery project (Africa’s largest)? You’ll still get 1m land around Ibeju if you search well despite the multi-billion dollar project happening in the area.

These guys don’t buy in plots. They buy in hectares or even in miles.

I think this is one reason people think Nnewi lands are overhyped.

This is just my irrational thought. Don’t take me too serious.



https://www.youtube.com/watch?v=e1KGpB45l0c

spyder880:


My friend who is from Nnewi has no plot allocated for him from his ancestors, his whole community has no lands anymore and so with all his siblings and cousins. He has to go and look for lands at any cost if he will build anything in his home town. He is willing to pay any amount to build within Nnewi.

The akuluouno strategy is also putting a huge squeeze on many lands, especially in Anambra state, Anambra people has thus invaded many other neighbouring and not so neighbouring states to buy up available lands in huge quantities. I know many bush areas of Enugu, Ebonyi and Imo state already bought and documented by Anambra people. They usually buy 100 - 200 plots or even more.

recently, pictures were paraded on the internet about the home of one man from Noni. Seaman to be exact. It's estimated to cost $10ml for a house he comes back to every holiday or burial ceremony. You might try to explain to him why his decision isn't economically wise and he want you to explain to him how you are such an awesome investor and yet you don't have #5ml to your name.


Luis Onwugbenu popularly known as "Luis Carter" or "Carter bridge" went to the home of his in-law Innocent Chukwuma aka "Innoson" and then realized he's living in a hut all his life. He went to his community and started buying up every single land. People who already built houses there were given market value for their properties. About two four storeys were destroyed to make way for his new home. If na you get there, you will want to cash in as much as you can.


Ibeto is currently doing same. He's buying up every available land and building close to his home to enable him expand his compound

BrabusNG:


Out of curiosity, is Ibeto richer than Dangote? Or is the auto plant larger than the Dangote refinery project (Africa’s largest)? You’ll still get 1m land around Ibeju if you search well despite the multi-billion dollar project happening in the area.

These guys don’t buy in plots. They buy in hectares or even in miles.

I think this is one reason people think Nnewi lands are overhyped.

This is just my irrational thought. Don’t take me too serious.



https://www.youtube.com/watch?v=e1KGpB45l0c

where do you plan on seeing a hectare of land in Nnewi. Such lands are in the hands of multi-billionaires in this town and they're not ready to sell a sand

BrabusNG:


Out of curiosity, is Ibeto richer than Dangote? Or is the auto plant larger than the Dangote refinery project (Africa’s largest)? You’ll still get 1m land around Ibeju if you search well despite the multi-billion dollar project happening in the area.

These guys don’t buy in plots. They buy in hectares or even in miles.

I think this is one reason people think Nnewi lands are overhyped.

This is just my irrational thought. Don’t take me too serious.



https://www.youtube.com/watch?v=e1KGpB45l0c

Ibeto is operating in a city where there is serious scarcity of lands. He must pay top dollar before anyone vacates a property for him.

michlins:
recently, pictures were paraded on the internet about the home of one man from Noni. Seaman to be exact. It's estimated to cost $10ml for a house he comes back to every holiday or burial ceremony. You might try to explain to him why his decision isn't economically wise and he want you to explain to him how you are such an awesome investor and yet you don't have #5ml to your name.


Luis Onwugbenu popularly known as "Luis Carter" or "Carter bridge" went to the home of his in-law Innocent Chukwuma aka "Innoson" and then realized he's living in a hut all his life. He went to his community and started buying up every single land. People who already built houses there were given market value for their properties. About two four storeys were destroyed to make way for his new home. If na you get there, you will want to cash in as much as you can.


Ibeto is currently doing same. He's buying up every available land and building close to his home to enable him expand his compound

This reminds me of the book: the Richest Man in Babylon:

You might try to explain to him why his decision isn't economically wise and he want you to explain to him how you are such an awesome investor and yet you don't have #5ml to your name.

The above and highlighted statement undermines the whole debate. You think you know better but don't have a dime to your name.

Ndyoo:


Onitsha... Thanks for your information in advance!

In Onitsha, you have to first start by settling the community boys, it's not as if they will not come again when they are hungry, but pay and obtain receipts for their community and youth development fees, please keep this laminated and pasted at a prominent position in the front of the building where it's safe from people who will remove it. Plan to pay as much as N400k, meet the main chairman and get his signature signed in your front.

Them move to the government, the Anambra state physical planning board is the body handling building approvals. We paid up to N600k for a 4 decking last 3 years. https://www.nairaland.com/3787617/new-10-flats-2-bedrooms/16