Kayode Jesuseun: Finding the Perfect Home in Lagos, Nigeria

Lagos is Nigeria’s commercial hub due to its cosmopolitan nature and ever-increasing population estimated at over 21 million according to New York Times. It is also the most expensive rental property market in the country and the second most expensive real estate market in Africa (second to Luanda, Angola) currently valued at 40% of the Nigeria real estate market valued approximately at N6.4 trillion. The city’s rental property market is divided into three segments; the highbrow areas in which residents pay as much as N10mllion and N15million per annum for a Three-Bedroom Luxury Apartment while such apartment in low to medium income areas would go for anything between N250,000 and N2.5million.

According to a recent report from Pison Housing Company, it was estimated that about 80 percent of most cities’ population currently live in rented accommodation and spending almost 50 percent of their monthly income on house rent. As a result of the teeming population, the housing demand is very high compared to the supply of housing stock in the city and country at large. It is an overwhelming experience when you start searching for an accommodation in Lagos – you start out with enthusiasm, contacting estate agents in the neighborhood, driving around over 50,000 streets looking for properties for rent or for sale, reading real estate classified magazines. But that enthusiasm soon dries up and you realize you’re wasting time conducting countless inspections, losing thousands of naira on phone calls and visits with nothing to show for it!  The golden rule is that you need to achieve the right balance between affordability, availability, location and suitability in order to find your dream home on time and with minimum stress. I work in real estate in Lagos, so I have some ideas.

Affordability

As a rule of thumb, determine how much you can conveniently save towards your house rent on a monthly basis without compromising your standard of living as an individual. For (newlywed) couples, they could combine incomes to secure affordable rental apartment with top-notch facilities depending on their definition of a “perfect home”. Your house rent should not be more than 30-40 percent of your net monthly income. Always endeavor to take the issue of affordability serious before property search because continuity of payment of rent without anxiety is paramount, that is if you want to spare yourself any embarrassments.

Availability    

Having established what is affordable, it is pertinent to start your property search in the right direction instead of following the cumbersome traditional means of house hunting. To deal with the issues of availability and affordability, one must be realistic and prepared to be flexible. You will have to compromise on your ideal property if your budget is below the current market value in your chosen area. A unique property search technology has been developed to enable property seekers to find their desired house on time and there are websites to help navigate through this process.

Location

First, identify exactly where you want to live instead of calling several estate agents in different location in the city, requesting for a particular apartment. There are over 50,000 thousand streets and 100 estate agents in a particular local council area, so there is the need to be specific. Try to name a few streets you particularly like, type of home you are looking for as well as facilities in the apartment, neighborhood attractions and places of interest in the area you would like to stay. All of this should help your agent understand the kind of apartment you are looking for and should result in property of interest being sent to you for possible inspection rather than viewing irrelevant properties based on your lifestyle.   

Suitability

Once you have shortlisted properties for viewing and they are within your price range, I usually recommend to my clients that they see as many properties as possible in short amount of time, because the rental market in Lagos moves like the wind. The properties you see today could be gone in a matter of hours! As a general rule, we say once you have seen around 8 properties, that is enough for you to know what you can get for your money in the area.

I repeat, you might need to compromise! It is uncommon (unless your budget is unlimited) that people find the perfect property without compromising on something like space, facilities, proximity to work place, favorite spots or parks, cinema etc. you also need to be quick about making an offer. In doing this, state the conditions you want in the contract and ensure that you are in agreement (in writing) from the very beginning.

Finally, you have got the keys to your property. It is professional that a copy of the inventory report of the apartment be given to you. Be sure to check the accuracy of the content and keep all rent receipts, refundable fee receipts and/or tenancy agreements for reference purpose.  

Lagos is an interesting place to live in; it is difficult to imagine being bored in Lagos. Finding a decent place to live though, is a challenge, as ‘decent’ can be subjective. Like every other industrial city in the world, Lagos has its own rules. Once you get a good understanding of the market, you’re all set to enjoy the city’s wonders.

Kayode Jesuseun is Founder of Lagos Real Estate Property Platform  Whatproperty.ng

 

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