Why Do Property Prices Increase?

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.

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.