According to a nearby real estate market watcher, for several reasons, not only in general economic conditions, small apartments, especially 1 and 2 bedrooms, have increased demand and investment across cities and market nodes. I am.
Market analysis by MDS Property LimitedReal estate companies show that of the 428 apartments surveyed on Victoria Island, more than 369 units were sold in a clear drop in the market.
A further analysis of the units sold, according to the company, found that it consisted of 38% of one-bedroom apartments, 43% of two-bedroom apartments, and 19% of three-bedroom apartments.
Real estate developers and brokers operating on Victoria Island, Ikoy and Recce axes explained the growing demand for these smaller units and said their investment interests and considerations also favored them. I did.
Some of these reasons are decisions made by the entity that place more emphasis on accommodating expatriates in short-stay homes that can be paid weekly, monthly or quarterly, as opposed to previous annual rents. It is included.
“This reduced the demand for annual rentals by these companies by 40-45%, and as a result, investors focused on short- and short-stay one-bedroom and two-bedroom apartments,” MDS said. Market research says. I will explain.
Another reason is a homeowner looking for a small apartment, house, or room that is kept for occasional use in the Central Business District (CBD). An elderly couple downsizing to a more efficient space. Parents give their children these apartments as gifts. The number of first-time homebuyers, starting with young families and preferring a relatively large number of affordable apartments, is steadily increasing.
According to MKO Balogun, Group CEO of Global PFI, 6 out of 10 people looking for a home to buy are looking for a two-bedroom apartment. Therefore, the two-bedroom apartment proves the findings of the MDS property that it is a home seeker toast.
Barlogun said the developers of large apartments have converted them into one-bedroom and two-bedroom apartments or allowed co-residents. In this case, two or more people pool the resources and buy and share a 3-bedroom or 4-bedroom apartment. Use the living room as a common area.
Many developers and investors are already taking advantage of the opportunities offered by this market segment. The African Capital Alliance (ACA) is one of the earliest investors in this market. “We are responding to what the market says. Obi Nwogugu, former head of real estate at ACA, talked about Blue Waters Lagos.
Bluewaters is the company’s 17-story multi-purpose development, consisting primarily of two-bedroom apartments, with all units sold out before the project was completed, according to Nwogugu.
The management of Cruxstone Development and Investment, the developer of the 13-story Iconic Tower on Victoria Island, shares the same story with the growing demand for one-bedroom and two-bedroom apartments. Therefore, the entire building is primarily designed to offer two bedroom apartments. For short stay components.
Coral Apartments at MDS Properties on Victoria Island is also a premium collection of one-bedroom and two-bedroom apartments, offering great value to both homeowners and investors. The company guarantees investors high rental yields and increases the return on investment.
Chudi Kalu, CEO of Middlechase Properties, hasn’t seen the outlook for short-term accommodation in the long run, but Segun John-Adejumo, a former financial banker and managing director of Precioso Homes, has a different view.
“Two-bedroom apartments have high sales and the demand for rent is very high, whether for short-term or regular rentals, so if you have a two-bedroom apartment and want to bring it to market, that’s good. If the location is good, you can rent it within a month, unlike people who stay in 3 bedrooms, “he explained.
The reasons for the growing demand for small condominiums are as follows.
https://businessday.ng/real-estate/article/here-are-reasons-theres-uptick-in-demand-for-small-size-apartments/ The reasons for the growing demand for small condominiums are as follows.