If you still have conflicting thoughts on why you should buy real assets in 2025, this article will clear your doubts in minutes. Have you noticed how the value of properties in cities like Lagos keeps appreciating really fast? Between rent hikes and inflation, real estate has become more than just an investment— it’s a shield against economic uncertainty. Here are a few reasons you should reconsider.
1. Why Real Assets Matter
The money you have sitting idle in your bank continues to lose its purchasing power. Meanwhile, real assets like land and houses are appreciating at record rates exceeding 50% per annum in some locations. From all indications, real estate has stood tall as the most reliable investment you can make today and waiting until after 2025 to get started could cost you more than you think.
2. The Rental Income Boom
Did you know that rents in major Nigerian cities have soared by nearly 50% since 2020? If you had invested in a property back then, you would have been among the few investors enjoying substantial passive income.
Take Lagos as an example: a two-bedroom apartment rented out for ₦1 million annually in 2020 could now earn you ₦1.5 million or more. If you have 4 to 6 units of said two-bedroom apartment, that is N6 million to N9 million worth of rental income that could help you offset living expenses, invest in other ventures, or even save for future property purchases.
3. Land Value Appreciation
Land is one of the few investments that rarely depreciates. In places like Ibeju Lekki, Epe, and some parts of Sangotedo, land values have doubled or even tripled in just four years.
- Example:
In 2020, a plot of land in Ibeju Lekki cost ₦1.5 million. Today, that same plot is worth over ₦5 million! If you had bought two plots back then, you’d have over ₦10 million in assets now.
4. The Inflation Factor
Inflation keeps reducing the value of money over time. With Nigeria’s annual inflation rate hovering between 16–22% since 2020, the naira’s purchasing power has drastically declined.
To put this in perspective, ₦1 million in 2020 now holds the same value as approximately ₦500,000 or less today. This means that any money left sitting in your bank account is losing value every day.
5. The Devaluation of the Naira
The naira-to-dollar exchange rate has plummeted by almost 150% since 2020. This is also one of the reasons you should buy real assets. If you rely on savings or low-yield investments, this devaluation has ensured you get less than you saved or invested when you make a withdrawal.
But when you invest in real assets, you create a buffer against such economic shocks. Properties appreciate in value and offset currency devaluation. This ensures not just the safety of your investment but the growth of your investment as well.
6. Why 2025 Is a Turning Point
2025 marks a significant period due to anticipated economic reforms and potential market shifts. Delaying your investment could mean higher property prices and fewer opportunities. The earlier you act, the more you can leverage today’s comparatively lower property prices. One thing we can all agree on is that prices rarely decrease in Nigeria, they only increase.
7. Comparing Real Assets vs Savings
Let’s do a quick comparison:
| Metric | Real Assets | Savings |
|---|---|---|
| Value Growth | High | Low or Negative |
| Inflation Impact | Protected Against Inflation | Loses purchasing Power |
| Income Potential | Rental Income | None |
From the table above, you can see that real assets offer a far superior return on investment than traditional savings.
8. How to Get Started on a Budget
If you think real estate is out of reach, think again. Many property developers now offer payment plans that allow you to spread the cost over months or even years.
If you are ready to start small, these are two important steps you should take:
- Look for affordable locations like Epe or Ibeju-lekki.
- Opt for installment plans to ease the financial burden.
9. The Role of Location in Real Estate
The mantra in real estate is simple: location, location, location. When you are getting started, you should focus on areas with upcoming developments, like new roads, airports, or industries, tend to appreciate faster.
For example:
- Ibeju Lekki: This is home to the Dangote Refinery and Lekki Free Trade Zone.
- Epe: This area is fast becoming a residential hub with improved infrastructure.
10. Overcoming Common Hesitations
If you are hesitant because the economy feels unpredictable, think of any alternative investment vehicle that provides stability in times of uncertainty. When you do, you’ll realize precisely why real estate is essential—it provides stability in uncertain times.
If on the other hand you are concerned about scams, It is advisable to work with reputable realtors and always verify property documents before committing.
11. Steps to Secure Your First Property
- Set a Budget: Vet your personal finances to determine how much you can afford
- Research Locations: Identify areas with high growth potential.
- Inspect the Property: Visit the site to ensure it meets your expectations.
- Negotiate Payment Plans: Many developers offer flexible terms. Work with a reputable realtor to get the best offers and guidance.
- Verify & Obtain Your Documents: Verify the property’s documentation before purchase. After making payments, ensure to obtain all documents to confirm and take ownership of your property.
12. Why Delaying is Costly
Every day you wait, the cost of properties increases. Avoid the regret of looking back a year from now and realizing you could have bought the same property for less.
13. Conclusion: Take Action Now
The numbers don’t lie: real assets are one of the safest and most lucrative investments you can make today. As we approach 2025, the window of opportunity is narrowing. Take the bold step now, and secure a property that will appreciate in value and secure your financial future.
If you have any questions, leave it in the comments section. If you are ready to start your journey, Send us an email for inquiries or chat with us on WhatsApp to get started.
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