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But is there a seasonal nature to the sort of profits you can claim from this investment? Available data indicate that land and property values are somewhat subject to the performance swings of the wider economy, as measured by the country’s GDP. A buoyant economy will often stoke higher demand, and drive prices higher. Economic stagnancy or recession may cause values to climb slowly. These facts suggest that returns on land investments may be influenced by the state of the economy, among other things. If you’re an investor, you’ll want to know what signs you’ll want to see before buying a piece of land.
Signs That It’s A Good Time To Buy Land
Here are some of the things that may indicate a good time to purchase land in Nigeria. A Future Spike In Demand This is almost guaranteed for many parts of Nigeria. That’s because we have a growing population and an ever-increasing need for shelter and workspaces. Authorities have put the country’s housing deficit at 22 million units. And it’s set to rise by several million units over the next decade. More homes will have to be built, and more land will be needed for this. The prospects are much better in the rapidly urbanizing districts on the outskirts of our major cities. Demand will be highest at these locations, so we can expect prices to soar. In some areas, the value of land has more than doubled in just five years.Sign up to the Connect Nigeria daily newsletter
The Prospect Of Significant Development Projects Look out for sites mapped out for significant industrial development. In a few years, the lands around them will be worth a lot more than they currently go for. Examples of this abound. At Ibeju-Lekki in Lagos, the presence of the Dangote Refinery has caused a scramble for real estate in its neighbourhood. The area’s Free Trade Zone and proposed airport have also made land a premium investment there. Inflationary Trends When inflation intensifies, you need a good store of value that’ll preserve your wealth against it. Land gives you this, and more. Its price will rise along with those of the general economy. This, coupled with persisting demand, will keep you from losing the true value of your wealth over time. Be sure to purchase land in a location with good prospects for future development. This will give you a better chance of tracking and beating inflation with it. Final Words: Playing The Long Game The factors we’ve listed here are worth considering. By working with them, you could position yourself early on for an investment that produces huge returns. But over the long term, your land investment will be worth several times its current value. This is true regardless of the inflationary trend or state of the economy at the time of purchase. Ultimately, spending time in the market will be more profitable than timing the market. Featured Image Source: Private Property NG
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