Real estate, fastest
way to prosperity– Surveyor
By Sun News Publishing
Monday,
February 12, 2007
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| Photo:
Sun News Publishing |
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An estate surveyor and valuer, Mr Emmanuel Efuntayo has
affirmed that real estate is the quickest way to prosperity. In a paper with the
theme Wealth creation through real estate investment in Nigeria, he said that
people who have invested in real estate, especially in the urban areas of Lagos,
Abuja, Port-Harcourt and so on have for long been enjoying capital gains.
He
said that Lagos region appears to have recorded the highest growth rate especially
in the residential and commercial sub sector.
For instance, Femi Okunnu
said flats at the phase 11 of the LSDPC estate were sold in 2004 at about N16.5
million per flat by LSDPC, while the same flat is going for about N20 million
in the secondary market at the moment.
"The same holds for LSDPC Dolphin
Estate duplexes which sold in 1990 for N450,000 but now trades at the secondary
market for N35 million.1004 estates in Lagos is quietly being offloaded into the
market for between N20 million and N30 million. It is projected that before the
flats are handed over to the individual and institutional purchaser, it would
have appreciated by about 25 percent.This projection will not be too difficult
to realize considering the high rate of response from the public to the sale,"he
said.
Efuntayo said that UACN Development Company sold three bedroom flats
at the Cablepoint Estate for N25 million while the same flat now goes for N35
million.
He said that similarly, the semi-detached houses that sold for N40
million now sells for about N60 million, adding that the spin off effect may increase
the supply gap for residential and recreational properties along the Lekki corridor.
According
to him,"It is pertinent to state that the phenomenon of the ‘dollarisation’of
the Nigerian property market would appear to have paved way for offshore mortgage
financing arrangements.Owners of luxury flats and town houses at Ikoyi and Victoria
Island now demand rent to be paid in dollars for their properties.A four bedroom
town house at Parkview Estate commands rent as much as $ 45,000 per annum with
a possibility of two to five years prepayment.This figure exclude service charges."
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