Assessing the Viability of Care Home Facilities in Lagos, Nigeria

Senior or care homes for the elderly are a relatively new phenomenon in Nigeria, and they have not received much attention as a real estate investment option. This paper aims to examine the viability of investing in senior or care homes for the elderly in Lagos State, Nigeria. It examined the viability of the investment and the factors affecting the residence of the elderly as an investment in the area of study. Data gotten through structured questionnaire administered on four (4) investors operating facilities for the elderly in Lagos, Nigeria was analyzed using descriptive analytics (Weighted Average Scores, frequency distributions, and a graphs) and discounting viability appraisal techniques [NPV, IRR, and Profitability Index (PI)]. Factors such as affordability, Governmental and cultural factors ranked high among the major factors affecting old peoples’ home investment in the area of study. The findings further revealed that old peoples’ home is a novel, yet viable investment that require huge capital outlay, which is the reason small scale investors could not easily break into the market. As a result, government should formulate legislations that favour the growth of this industry. In addition, Prospective investors are encouraged to take advantage of this investment among other various real estate investment options.