One of the fast-developing areas in Nigeria is Ilorin, Kwara state. Although it has not fully caught the attention of most people, the growth and development of different areas in Ilorin cannot ...
12Apr
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Factors That Affect The Value Of Land In Nigeria
One of the most valuable assets is land, regardless of the purpose you intend for it to serve. Land value can be defined as the monetary cost of the land. It can be the cost of undeveloped land with or without a built property Whether you’re considering using it for commercial or residential purposes, it is essential to understand several factors that affect the value of land in Nigeria. Knowing these factors can help you make informed choices. This article explores the factors that affect the value of land in Nigeria and how to market your land for sale strategically.
Factors that affect the value of land
Location
Location is often cited as the most important factor influencing land value. The nearness of a piece of land to key amenities such as schools, shopping centers, public transportation, and recreational areas can significantly increase its value. In contrast, lands located in remote or less desirable areas get sold at lower prices due to lower demand. This is because land in desirable locations offers convenience, accessibility, and potential for development.
Bye-laws and regulations
Bye-laws and regulations set by local governments also play a vital role in determining the value of land. These regulations dictate the type of development that can be done on a particular piece of land. For instance, if a plot of land is zoned for commercial use, it will have a higher value compared to land zoned for residential or agricultural purposes.
Access to Utilities
Another factor that can affect the value of land is its access to utilities such as water, electricity, and sewerage. Land located in areas with readily available utilities tends to have a higher value as opposed to those without it. This is because installing these services eliminates the cost and hassle, making the land more desirable for development. Excellent infrastructure and pleasant surroundings add value to a property.
Economic Factors
The state of the economy can also have a significant impact on the value of land. In times of economic growth and stability, land values tend to increase as there is a higher demand for development. On the other hand, during an economic downturn, land values may decrease due to a decrease in demand. In addition, factors such as interest rates, and inflation can also influence the value of land in Nigeria.
Supply and Demand
As with any market, the supply and demand of land play a significant role in determining its value. When there is high demand for land, prices tend to increase. On the other hand, if there is an oversupply of land in a particular area, its value may decrease. It’s essential to research the market trends and demand for land in a specific location before making any buying or selling decisions.
Property Size and Conditions
The size and condition of a land play a significant role in determining its value. Lands with larger sizes generally have higher values, although the size-to-value ratio may vary depending on the location and demand. The property’s overall condition, including its age, maintenance, and structural integrity, also affects its value.
Transport Linkages
Transport linkages are very important factors to consider in determining the value of land. Since transportation governs the mobility & ease of movement to and from the area. Smooth roads, efficient public transportation, and lack of congestion are some of the desired transportation attributes of any location. Easy access and proximity to public transport such as bus or metro train is an added advantage for the resident and thus adds up to the cost of land.
Land Records
While buying land, buyers need to be aware of the actual ownership of the land. Thus having verifiable records of the past purchase and buyers of land becomes important. This is of particular importance if any dispute arises in the future and the current land owner is required to prove the ownership of the land. Land without any verifiable records is usually available at a cheap price but should be avoided.
Location is the most crucial consideration when purchasing land in Nigeria. Checking to see the neighborhood and its tendency for rapid development is a wise decision to make a realtor. People ...