Our recent findings have shown that unlike the previous 5 to 10 years, land prices in the two most active outskirt locations of Lagos (Ikorodu and Badagry) saw slow growths in the year 2017. While pundits attributed the situation in Ikorodu to growing security concerns in the area, those of Badagry were linked to the failure of government to deliver on its promises.
Over the last five years, land prices in Ikorodu and Badagry have seen consistently 50% to 70% rise annually and in some years up to 100%. For example, between January and December 2016, land prices in the main parts of Ikorodu rose from between N2million-N3million to N3.5million-N4million, while in outskirt areas like Agbowa, Imota and Ogijo prices moved from between N700kmillion-N1million to N1.5million. In Badagry, the situation was the same in 2016. In more accessible areas like Mowo, Aradagun, Mosafejo, Ibereko and Ajara, average land prices rose from between N500K-N700k to N1million-N1.5million.
However, over the course of 2017, the trend seem to have slowed down. In easily accessible or main parts of Ikorodu land prices which stood at between N3.5million-N4million have remained the same way or by a little margin of N200k and 500K. In the outskirt locations prices stayed the way they were at the beginning of the year. Also, in Badagry,land prices only moved by marginal values of between N100k-N200k and in some cases, the prices remained stagnant.
On the reason for the slow growth of prices in Ikorodu, pundits say the tensed security situation over the course of the year did not help matters. “The Badoo Killing affected the demand for land in Ikorodu” says BabajideOdusanwo a real estate developer. It was really difficult to convince people to come and buy land in Ikorodu. Everyone was scared of the Badoo situation. You know security of lives and properties is always at the heart of all real estate investments. The Ikorodu property market suffered badly from the high level of insecurity and it was extremely bad”, Odunsanwo says.
“Now that the situation is under control and Badoo seems to have been tamed, we are hoping that there will be renewed confidence and high demand for Ikorodu properties. 2018 should be better than 2017 if the level of security that we have now is sustained. The local vigilantes are also helping and we as developers and real estate players in the area are hopeful for a better 2018”, he added.
Ajagun Pentho, a real estate agent in Badagry says the hype about the Badagry property market was based on the promise by the Lagos State Government to complete the first phase of the Lagos-Badagry Expressway expansion and mono rail lines. “The work has seen little progress and a lot of people who had hitherto hoped that the government was going to meet the timeline for the completion of the first phase of the project were extremely disappointed. Now the road is now so bad. It is even more difficult to ply the road now. That has significantly reduced the demand for properties in Badagry”, Pentho says.
“We are hopeful. We believe things will pick-up again. We tell people not to wait and that this is the time to move into Badagry. The road will be completed one day and smart investors know they do not have to wait for the project to be completed. 2018 will be better now that it seems the contractors on the road have started serious work again”, he added