The Role of Infrastructure in Real Estate Value: What Every Investor Should Know

ESV Seyi Oladeji

In Nigeria’s ever-evolving real estate landscape, one critical factor that consistently influences property value is infrastructure. While location often gets the spotlight in investment decisions, it is the quality and presence of infrastructure roads, drainage, electricity, water supply, and communication networks that truly unlocks or limits the value of any property. For investors looking to maximize returns, understanding this dynamic is non-negotiable.

A plot of land in a well-located area with poor or nonexistent infrastructure may remain stagnant in value for years. Meanwhile, property in a less prominent location with good roads, steady power supply, and efficient drainage systems can witness rapid appreciation. Infrastructure determines access, livability, and long-term sustainability. It’s the difference between a plot that becomes a vibrant residential community and one that stays vacant or becomes a liability.

Take, for instance, the Lekki-Epe axis of Lagos. For years, it was considered a remote area with little value. However, the construction of the Lekki-Epe Expressway, expansion of the Free Trade Zone, and the proposed deep-sea port transformed its outlook. Suddenly, what was once distant land became a hotspot for real estate activities. The same is true for areas like Abuja’s Gwarinpa or the Moniya-Iseyin corridor in Oyo State, which gained momentum only after infrastructure development took place.

Investors often get drawn into the aesthetics of a property or the buzz around a new location, but without solid infrastructure, that appeal is short-lived. Accessibility is crucial if a property can’t be reached conveniently, its market value suffers. Likewise, consistent power supply, potable water, and well-planned drainage systems determine not just the comfort of residents but also the long-term appeal of the property.

Another overlooked but important aspect is social infrastructure schools, hospitals, markets, and security services. These facilities attract families, tenants, and businesses, all of which drive demand and, by extension, increase property value. Areas with strong public and private investment in these sectors tend to appreciate faster and hold value longer.

For developers and investors, partnering with government agencies or even initiating private infrastructure projects can be a smart move. Gated communities and estate developments that provide their own roads, water, and security often command higher prices and attract quality tenants. In fact, infrastructure can be the main differentiator in real estate competitive markets.

However, it is not just about current infrastructure it’s also about future plans. Savvy investors pay attention to government development blueprints and urban expansion projects. A quiet area today might explode in value tomorrow once a major road or public project begins. Ignoring these signals means missing out on potential windfalls.

In conclusion, infrastructure is the silent engine behind real estate value. It drives growth, stability, and desirability. For any investor whether a first-time buyer or a seasoned developer understanding its role is essential. Property without infrastructure is merely land with potential; property with infrastructure is an asset with promise and profit.

ESV Seyi Oladeji is a registered Estate Surveyor &Valuer, anda Property Consultant