In the mid-90s, Ikota in Lekki Lagos was a far cry from the bustling metropolis it is today. Lekki Peninsula was largely undeveloped, with swathes of land covered in lush vegetation and swamps with monkeys jumping around the neighborhood as if no other higher creatures existed. Amidst this green expanse was Ikota, a sleepy fishing village,
Mr Ogoyi, a driver to a wealthy businessman, was offered a plot of land in Ikota by his boss who had acquired many acres of land in the area . The land was free, a gift. But to Mr. Ogoyi, it was nothing but a vast, intimidating expanse of bush. His mind was fixed on the tarred roads, electricity, and water amenities he was accustomed to in the city. He politely declined the offer, dismissing it as a worthless piece of land.
Fast forward to the 2020s, and the narrative of Ikota has dramatically changed. What was once a remote fishing village is now a thriving residential and commercial hub. The once-despised plot of land Mr. Ade turned down would now be worth tens of millions of naira. Luxury apartments, shopping malls, and upscale hotels dot the landscape. The area has become a prime location for both local and foreign investors.
Mr. Ogoyi, now retired and reflecting on his life, often rues the day he declined that land gift. He has watched helplessly as his contemporaries, who bought Okota lands then, have become millionaires. The stark contrast between his poor retired way of life and the opulent lifestyles of the people who bought Ikota in those days is a constant reminder of the opportunity he missed.
This true life story underscores several crucial lessons for investors considering properties in developing areas:
1: Vision and Patience: The ability to see beyond the present state of a property and envision its future potential is essential. Ikota was once a 'bush', but its transformation into a prime location demonstrates the power of long-term vision.
2: Low Entry Barrier: Properties in developing areas are often affordable, making them accessible to investors with limited capital. This can be a significant advantage compared to established markets.
3: Risk and Reward: Investing in developing areas carries inherent risks. However, the potential rewards can be substantial, as evidenced by the Ikota example.
4: Diversification: While it's tempting to concentrate on established markets, diversifying your portfolio to include developing areas can balance risk and reward.
5: Land Banking: Acquiring land in promising areas before significant development can yield exceptional returns, as demonstrated by the value appreciation in Ikota.
By understanding these lessons as an investors, you will be able to position yourself to capitalize on opportunities in developing areas and potentially achieve significant financial gains.
