future of real estate?

[nosa2]

I came across this ad on a classified ads site Distressed Houses for sale @ Lekki phase 1 - Lagos For Sale - Nairalist and i'm wondering if these is kind of adverts dont signal the begining of the real estate price crash?

[waaan5]

Originally Posted by nosa2

I came across this ad on a classified ads site Distressed Houses for sale @ Lekki phase 1 - Lagos For Sale - Nairalist and i'm wondering if these is kind of adverts dont signal the begining of the real estate price crash?

Nosa, there have been various signs of price stabilization in highbrow Lagos real estate mrkt, but that advert is just a gimmick. They are trying to capitalize on people's anticipation of a crash to make a quick sale. Otherwise they should have been bold to mention the prices so that the reader would determine if it is a 'distressed sale' or not.

[c kenneths]

There is no standard mearsurement to show how real estate prices perform in the Nigerian market. Thats why I find it hard to believe real estate prices are on the decline. Quoted prices are very flexible. I have had cases when I lowered my advertised prices for the lure of a quick sale or sometimes refusing to sell when I wont need the money immediately.

[Babs_O]

Originally Posted by waaan5

Nosa, there have been various signs of price stabilization in highbrow Lagos real estate mrkt, but that advert is just a gimmick. They are trying to capitalize on people's anticipation of a crash to make a quick sale. Otherwise they should have been bold to mention the prices so that the reader would determine if it is a 'distressed sale' or not.

I would think otherwise. People's anticipation of a crash should only help them to make a quick buy and a very delayed sale. If I fear prices will crash why should I buy. (rather I will quickly sell the house I have)

[pumping]

Originally Posted by c kenneths

There is no standard mearsurement to show how real estate prices perform in the Nigerian market. Thats why I find it hard to believe real estate prices are on the decline. Quoted prices are very flexible. I have had cases when I lowered my advertised prices for the lure of a quick sale or sometimes refusing to sell when I wont need the money immediately.

I think the market is generally down. This is most evident at the high end of the market. I know a few blokes that also went on a borrowing spree from the banks to build properties in Ikoyi, especially Banana Island. They are finding it hard to sell right now even after dropping prices significantly.

Most people that are not under pressure can always wait it out and maintain old prices...but you have to wait for some time..

Let us just understand that in Nigeria, money is not manufactured somehow. 80% of all that is available to spend is from Government and right now that Government is broke. The state allocations are dropping by the month and states are now issuing bonds to raise funds...It is affecting everything. That is why they must remove subsidies (they can't afford it anymore) and they must ask the private sector to take over the provision of infrastructure....otherwise, what will be left to chop??

[nosa2]

Another thing thats going to put pressure on real estate prices is this loan recovery going on, i expect a lot of high brow distress/emergency sales just like we saw in the stock market

[waaan5]

Originally Posted by nosa2

Another thing thats going to put pressure on real estate prices is this loan recovery going on, i expect a lot of high brow distress/emergency sales just like we saw in the stock market

Could be. Especially if they are seen as seriously trying to recover the debts. Otherwise, nothing would change much.

Nosa, pls I was not referring to you in my comment in the 'Banks"thread. I have pasted the quote I referred.

[c kenneths]

Originally Posted by pumping

I think the market is generally down. This is most evident at the high end of the market. I know a few blokes that also went on a borrowing spree from the banks to build properties in Ikoyi, especially Banana Island. They are finding it hard to sell right now even after dropping prices significantly.

Most people that are not under pressure can always wait it out and maintain old prices...but you have to wait for some time..

Let us just understand that in Nigeria, money is not manufactured somehow. 80% of all that is available to spend is from Government and right now that Government is broke. The state allocations are dropping by the month and states are now issuing bonds to raise funds...It is affecting everything. That is why they must remove subsidies (they can't afford it anymore) and they must ask the private sector to take over the provision of infrastructure....otherwise, what will be left to chop??

Maybe its because I dont take loans to build, I am never in a hurry to sell. I can also rent a property that stays sits for a long time and sell two years later at more than 50% more.

[waaan5]

Originally Posted by Babs_O

I would think otherwise. People's anticipation of a crash should only help them to make a quick buy and a very delayed sale. If I fear prices will crash why should I buy. (rather I will quickly sell the house I have)

That is what I would do also. Wait for it to crash before buying. But what I was saying ws that the advert in question was trying to 'make people think their prices have been crashed already". Remmember the title of the headline was something like 'distressed sale'. I argued that the their asking prices were not showing 'distress'.

[nosa2]

Originally Posted by waaan5

That is what I would do also. Wait for it to crash before buying. But what I was saying ws that the advert in question was trying to 'make people think their prices have been crashed already". Remmember the title of the headline was something like 'distressed sale'. I argued that the their asking prices were not showing 'distress'.

Let them talk all they want, the distress would soon come, i look forward to buying a flat in lekki phase 1 for around 15m.

[wanaj0]

Originally Posted by nosa2

Let them talk all they want, the distress would soon come, i look forward to buying a flat in lekki phase 1 for around 15m.

To buy or to rent???? Land for that area self na die.

[slydomber]

I don't know much about Lagos. A friend wants to sell me a plot in the Lekki beach area for over 3 million...is that a good buy? For those who know the area...what do u guys think?

[c kenneths]

Originally Posted by slydomber

I don't know much about Lagos. A friend wants to sell me a plot in the Lekki beach area for over 3 million...is that a good buy? For those who know the area...what do u guys think?

3m seems low for Lekki, see the plot yourself and make an assesment then speak to any local land agent for comparisons. Always shop around first before showing your cheque book. Good luck.

[waaan5]

Originally Posted by slydomber

I don't know much about Lagos. A friend wants to sell me a plot in the Lekki beach area for over 3 million...is that a good buy? For those who know the area...what do u guys think?

Slydomber, the term Lekki area is loose and can span all the way to Eleko and beyond. So you need to know the precise place. If it is in the place that is actually called Lekki Beach (that can be accessed at the third roundabout as you come from VI), then the price is 'too good to be true'. Meaning it is definitely not true. The going rate around there even for traditionally held areas should be from N10mln upwards. But for farther away as you get to Ogombo, and sangotedo areas, it could be a right price. But bear in mind those areas are far from VI (factoring traffic).

[slydomber]

Originally Posted by waaan5

Slydomber, the term Lekki area is loose and can span all the way to Eleko and beyond. So you need to know the precise place. If it is in the place that is actually called Lekki Beach (that can be accessed at the third roundabout as you come from VI), then the price is 'too good to be true'. Meaning it is definitely not true. The going rate around there even for traditionally held areas should be from N10mln upwards. But for farther away as you get to Ogombo, and sangotedo areas, it could be a right price. But bear in mind those areas are far from VI (factoring traffic).

Actually, the plot is in Ibeju Lekki, around Ekpe express, after cheveron. I hear they want to build a trade center nearby. So, for 3million, is this a good deal?

[waaan5]

Originally Posted by slydomber

Actually, the plot is in Ibeju Lekki, around Ekpe express, after cheveron. I hear they want to build a trade center nearby. So, for 3million, is this a good deal?

Ibeju Lekki is as you go to Eleko (i.e. even after, Aja, and Sangotedo). To use Chervon roundabout as a landmark is no accurate. It is better to say past Crown Estate, May flowers, and even Beechwood). N3mln is on the high side as far as I am concerned in this area. Except ofcourse the layout it is situated already has access and infrastructures in place. Forget what they have on the drawing board there for now. It is all marketing jinx until concrete action starts. I would suggest you keep it at N1.5mln to N2.5mln max per plot, in order to be sure you are getting some good deals.

[Taipan]

Originally Posted by waaan5

Ibeju Lekki is as you go to Eleko (i.e. even after, Aja, and Sangotedo). To use Chervon roundabout as a landmark is no accurate. It is better to say past Crown Estate, May flowers, and even Beechwood). N3mln is on the high side as far as I am concerned in this area. Except ofcourse the layout it is situated already has access and infrastructures in place. Forget what they have on the drawing board there for now. It is all marketing jinx until concrete action starts. I would suggest you keep it at N1.5mln to N2.5mln max per plot, in order to be sure you are getting some good deals.

Considering that I have offers at Sangotedo (for N2.5m) and Ibeju-Lekki (in a proposed estate for N2.64m) I think N3m is expensive.

[slydomber]

Originally Posted by Taipan

Considering that I have offers at Sangotedo (for N2.5m) and Ibeju-Lekki (in a proposed estate for N2.64m) I think N3m is expensive.

Thank you guys for all your help. Someone also mentioned to me that these places sometimes are swampy and may require lots of sanding in order to build.

My question is, i keep hearing remorse about an impending crash in the 9Ja real-estate sector, so should one just wait and see before buying?

[waaan5]

Originally Posted by slydomber

Thank you guys for all your help. Someone also mentioned to me that these places sometimes are swampy and may require lots of sanding in order to build.

My question is, i keep hearing remorse about an impending crash in the 9Ja real-estate sector, so should one just wait and see before buying?

I do not think sand filling would be an issue in most parts of Ibeju Lekki as it is generally dry ground.

I think there would be some price leveling especially in the high-end market of Lekki ph 1, VI and Ikoyi in Lagos. These are where 1000sqm of bare muddy ground can go for N250 mln. So there have to be some effect of the fact that less money is now getting shared by the government, and more recently the self induced disaster in the banking sector. But I do not expect a severe real estate crash as have been experienced in Britian and the US due to some factors such as the typical nija attitude to home owner ship.

How much this leveling will affect the medium market (1.5 - 10mln) land prices is still up in the air. methinks it will not be much.

[c kenneths]

What are the factors that can bring about a serious price crash in the real estate field? There is still a high demand for houses and lands will still be scarce as land fragmentation intensifies due to increasing population.