SMALL SPACE, BIG RETURNS:
HOW DEMAND FOR 1-BEDROOM FLATS IS A WIN FOR INVESTORS LOOKING FOR A STEADY RETURNS ON INVESTMENT? ONE ROOM APARTMENTS ARE THE WAY TO GO
As a potential buyer looking for a practical and affordable way to invest in real estate, you might want to consider one bedroom apartments. While affordable from an investor angle, they traditionally tend to be viewed as the less desirable option for potential homeowners or tenants, but does this still hold true?
The answer is surprisingly, no. Single room apartments are a great investment option, and contrary to popular belief, actually have a good return on investment (ROI), especially in cities like Lagos.
The target market? Working-class millennials. Nigeria produces over 600, 000 graduates every year, and about 76 % of that number finding employment, many of these young, single professionals tend to find single room apartments to be an attractive proposition. First, because they don’t require the extra space of two or three bedroom apartments, and also room or flat sharing might not be an ideal arrangement for most. Additionally, since the onset of the pandemic, many people are increasingly showing a preference for short-let apartments and vacation rentals over conventional hotels.
All these factors combined, have led to an uptick in demand for one-bedroom units that are situated in luxury complexes with access to gyms, pools, tennis courts, and other amenities often found in high end residential areas. Castles Lifestyle compiled a list of such properties. Here’s what’s on offer:
Location: Facilities: 24 hr power supply, standby generator, central heating system, solar inverters, Wi-Fi, DSTV and more.
Price: N26 million
Payment options: 40% initial payment required. 10 years Mortgage plan available.
Potential rentals: Depending on what purposes it is put to, residential rental figures are between N2 and N2.5 million, annually; while, Air BnB rates in the area average N60, 000 daily or (assuming zero void periods) N1.8 million, monthly.
Property details: (One bedroom) Gloch Towers
Property developer: Gloch Stylistic Limited
Location: Marinho Drive, Victoria Island. 5km away from Federal Palace Hotel and 2.5 Km away from Landmark Beach.
Facilities: Swimming pool, gym, children playground, bar, ocean view, and boys’ quarters.
Price: N153 million
Payment options: Flexible. Initial deposit requirement of N42 million.
Potential rentals: Based off estimates and projections, can be between N6 and N10 million annually. Air BnB average rate for the area is N75, 000 daily. Property details: (One bedroom) Greater Lagos County Homes.
Property realtors: Megamound Investment Limited.
Location: Michael Ogunlana Drive, Surulere.
Facilities: 24 hr power supply, a shopping mall, public spaces, recreational parks.
Price: N35 million
Payment options: 20% initial deposit, and a 7 years mortgage plan.
Potential rentals: Between N1.2 and N1.6 million, annually. Air BnB average is N50, 000 daily.
Property details: (One bedroom) Carmen’s Creek.
Property developer: Terra Developers.
Location: Sugarland Estate, Lekki. 6 Km from the Lekki Free Trade Zone, and another 4 Km from the La Campaigne Tropicana resort.
Facilities: 24 hr power supply, CCTV surveillance, swimming pool, and home automation (on request).
Price: N20 million.
Payment options: 30% initial deposit, with balance spread over 18 months. Also options for NHF (National Housing Fund) and pension plans are available.
Potential rentals: Based on similar property, in the region of N1.4 to N2.3 million, annually. Air BnB averages rates are N48, 000 daily.