Why Do Property Prices Increase?

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Understanding the Dynamics Behind Real Estate Price Adjustments

As an investor or prospective buyer, you might wonder why property prices, particularly in fast-growing regions like the Lekki-Epe corridor, rise over time. At Round Peg Homes, transparency is at the heart of what we do. Here, we’ll break down the major factors contributing to price adjustments in our ongoing projects, such as Bona Fortuna Estate and Sola Fide Estate.

1. Market Demand: Natural Property Appreciation

The core driver of real estate price growth is market demand. Prime locations like Epe, often called the “New Lagos,” have seen a surge in interest due to infrastructural development, proximity to key landmarks, and its growing role as a future commercial hub.

To illustrate this, we have included a Price Appreciation Graph (2019-2024) below. This graph shows the steady rise in property values in the Lekki-Epe corridor over the past five years.

To learn more about why Epe is becoming such a hot spot for property investors, check out our blog post: Epe vs. Lagos: A Comparative Analysis of Real Estate Opportunities.

As more people recognize the potential of this area, demand increases, which pushes property prices higher. Early investors benefit significantly, as property values continue to appreciate over time, turning their investment into a profitable venture.

2. Development Progress: Value Increases as Construction Advances

Timing is crucial in real estate. As estates develop, the value of the property rises. Key construction milestones—such as the completion of roads, utilities, and perimeter fencing—boost the worth of the estate.

At Bona Fortuna Estate, for instance, prices will appreciate further as we reach new stages in development. Buyers who get in early secure lower prices, while future investors will pay a premium as more features are added.

3. Inflation and Rising Costs of Materials

Inflation, both globally and locally, affects the cost of building materials such as cement, steel, and labor. In Nigeria, fluctuating currency rates and inflation further drive up costs.

As developers, we must adjust property prices to cover these rising expenses while maintaining the quality we’ve promised. This is why purchasing property early, before inevitable price increases, offers investors a financial advantage.

4. Upgrades and Added Amenities

At Round Peg Homes, we’re dedicated to delivering not just plots of land but fully developed, thriving communities. With the addition of top-tier amenities like gated security, recreational areas, and commercial spaces, the value of our estates naturally increases. These enhancements significantly boost both the living experience and property value, justifying price adjustments over time.

For example, Sola Fide Estate in Igbonla, Epe, is near key institutions such as Augustine University and LASUED Epe Campus. As we enhance the estate’s infrastructure and amenities, property prices will reflect these improvements.

For more insights into the long-term value of land and property development, check out our blog post: Something Will Forever Be Valuable.

As we continue to upgrade estates like Sola Fide and Bona Fortuna, their worth will appreciate, offering early investors substantial returns.

5. Supply and Demand: Investment Value

As development progresses and available plots decrease, the scarcity drives prices up. The principle of supply and demand is at play—fewer available units with high demand lead to higher prices.

Bona Fortuna Estate is selling out quickly, and as available plots diminish, prices will increase. Similarly, interest in Sola Fide Estate continues to rise, making early investment a wise financial move.

To explore available plots and learn more about our properties, visit our listings page: View Property Listings.

Epe’s Growth: A Snapshot

The Epe region is one of Lagos’ fastest-growing real estate markets, with property values steadily increasing over the last five years. Recent reports indicate:

  • A 30% annual increase in property value within key estates.
  • A 50% surge in demand for both residential and commercial land from 2020 to 2023.
  • 25% higher returns for early investors who entered during the first phase of development.

With projected growth of 40% over the next two years, Epe presents a prime opportunity for investors seeking long-term value.

Now is the Time to Invest

Price Increase Notice: Our next price adjustment takes effect on October 1, 2024. This is your chance to secure property at current prices before they go up.

Whether you’re interested in Bona Fortuna Estate or Sola Fide Estate, locking in your investment now ensures you benefit from the best prices and future appreciation. Don’t wait—invest today and secure your place in the future of Lagos.

Get in Touch: Contact us on WhatsApp or give us a call today to reserve your plot and start your journey toward land ownership.

Epe’s Golden Opportunity: How to Maximize Your Real Estate Returns

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Investment Tips: Maximizing Returns in Epe’s Real Estate Market

Investing in real estate remains one of the most reliable paths to building long-term wealth, especially when done in rapidly developing areas. Epe, Lagos, is one such area that has quickly become a hotspot for savvy investors. With its strategic location, ongoing infrastructural development, and increasing demand for properties, Epe offers incredible opportunities for those looking to maximize their returns. In this post, we’ll explore key investment tips to help you make informed decisions and capitalize on the booming real estate market in Epe.

1. Understand the Market Dynamics

Before diving into any real estate investment, it’s essential to understand the local market dynamics. Epe’s transformation from a quiet town into a thriving real estate hub is driven by its strategic location and significant infrastructure projects, such as the expansion of road networks and the development of new residential and commercial areas. This growth makes Epe an ideal location for real estate investments, as properties are expected to appreciate significantly over the coming years.

2. Evaluate Potential Investments

When evaluating potential investments, consider factors such as location, future development plans, and current market trends. Two standout estates in Epe are Bona Fortuna Estate and Sola Fide Estate:

  • Bona Fortuna Estate: Situated in Iwoye, Ketu, Epe, this estate offers plots of 500sqm for ₦9M and 300sqm for ₦5.4M. It’s a prime spot for both residential and commercial development, making it a top choice for investors looking to tap into Epe’s growth.
  • Sola Fide Estate: Located in Igbonla, Epe, Sola Fide Estate provides plots of 500sqm for ₦3.5M and 300sqm for ₦2.1M. This estate is ideal for investors seeking affordable land in a rapidly developing area, with the potential for high returns as Epe continues to grow.

These estates are strategically positioned to benefit from the ongoing infrastructural developments in Epe, making them attractive options for those looking to secure prime real estate at competitive prices.

3. Diversify Your Portfolio

One of the golden rules of investing is diversification—spreading your investments across different assets to reduce risk and increase potential returns. In real estate, this means not putting all your money into one property or estate. By diversifying your investments across estates like Bona Fortuna and Sola Fide, you can create a balanced portfolio with varying price points and opportunities for appreciation, minimizing risk while maximizing potential returns.

4. Focus on Long-Term Value

Real estate is typically a long-term investment, and patience is key to maximizing returns. Holding onto your property for a few years allows you to benefit from capital appreciation as the value of the land increases. Epe’s real estate market is still in its growth phase, meaning properties purchased today are likely to see significant value increases in the coming years, especially with the area’s ongoing development.

5. Leverage Professional Advice

Navigating the real estate market can be challenging, especially in a rapidly developing area like Epe. Consulting with real estate professionals like Round Peg Homes can provide valuable insights and strategies to ensure you’re making the best investment decisions. With our extensive experience in developing and delivering over 100 private properties across Nigeria, we can help you identify the most promising investments in Epe and beyond.

6. Consider Infrastructure Development

Infrastructure development is a key indicator of future property value. Epe has seen significant improvements in road networks, schools, and other amenities, making it a desirable location for new homeowners and investors alike. Estates like Bona Fortuna and Sola Fide are positioned to benefit directly from these developments, offering investors a higher potential for return on investment.

7. Maximize Returns with Strategic Sales or Leasing

Once your property has appreciated in value, consider selling or leasing it out to maximize your returns. In growing areas like Epe, rental demand is expected to rise, providing a steady income stream for investors who choose to lease their properties. This strategy can help you generate ongoing revenue while still holding onto valuable real estate assets.

Conclusion

Epe’s real estate market offers incredible potential for returns, particularly in strategically located estates like Bona Fortuna and Sola Fide. By understanding the market, diversifying your investments, and leveraging professional advice, you can make smart investment decisions that yield significant long-term benefits. At Round Peg Homes, we’re here to guide you every step of the way, ensuring your real estate investments are both profitable and secure.

Ready to Invest in Epe?
Contact us today at Round Peg Homes to explore the best real estate opportunities in Epe and start your journey toward maximizing your investment returns.