Over the last years, the Lagos-Ogun Property Market has witnessed a steady rise in its property prices. Past statistics have shown that at an annual capital appreciation of over 100%, the Lagos-Ogun Property Market remains one of the most vibrant and profitable in Nigeria. The situation did not change in 2017 as results of our findings on the City People Magazine Property Desk has shown that yet again, the Lagos-Ogun Property Market Prices have doubled over the last twelve months. Here is a location-by-location analysis of how things have gone down in the axis within the year in terms of land prices.
LAGOS-IBADAN EXPRESSWAY AXIS
No doubt, this is the most talked about segment of the Lagos-Ogun Property Market. It includes areas like Isheri-North, Arepo, Magboro, Ibafo, Mowe-Ofada and Shimawa. Over the last twelve months, average land prices in Isheri-North have risen from N5million-N6million to N10million-N12million, Arepo from N6million-N7million to N12million-N15million, Magboro from N4million-N5million to N8million-N10million, Ibafo from N3million-N4million to N6million-N8million, Mowe-Ofada from N2million-N3million to N4million-N5million and Shimawa from N1million-N2million to N2million-N3.5million.
One of the factors that have been identified by pundits for the trend in property prices in these areas is the now fast pace of work on the expansion of the Lagos-Ibadan Expressway. This they say have led to reduced traffic time to the axis from other parts of Lagos and have thus led to increased demand for land and properties generally in the area.
While demand for land is however on the increase in the area, there is a rising dearth of virgin plots with proper title in the area. As a policy of the Ogun State Government, most land in these areas fall within government acquisition and their titles would have to be regularized or ratified with the State Government. This has left prospective land investors in the area scrambling for the few titled plots in the area. It is the seller’s market for those who have proper title on plots in the area.
For areas like Ibafo, Mowe-Ofada, Papalanto and Shimawa, the impact of the major worship centers in the area on their land prices cannot be overemphasized. The newly constructed 10klm Auditorium of the Redeemed Christian Church for example is already having a massive impact on property prices in Shimawa and environs, while the University Campuses of Mountain Top University owned by Mountain of Fire Church, Redeemers University by Redeem amongst others have also created unique attractions for the area.
It is being predicted that the trend is not likely to stop anytime soon. As long as there is a mass exodus of people from all around Lagos to the axis and the churches in the area keep expanding their land back, land prices will continue to rise in the area. A completion of the Lagos-Ibadan Expressway expansion project is another reason why pundits believe land prices in the area will continue to rise by an average of 50%-100% annually in the area.
The Alagblole-Akute-Lambe axis is already one of the most developed and densely populated segment of the Lagos-Ogun Property Market. Over the land Twelve months average land prices in Alagbole moved from N15million-N20million to N25million-N30million, Akute from N10milllion-N15million to N20million-N25million, Ajuwon from N8million-N10million to N15million-N20million, Lambe from N3million-N5million to N6million-N8million, Matogun from N2million-N3million to N4million-N5million, Osherefrom N1million-N1.5million to N2million-N2.5million and Ikoyi-Oke from N500K-N1million to N1.5million to N2million.
Over the last six months, work on the over 25klm Ojodu-Berger to Sango Road project by the Ogun State Government has been very intense and that has helped to increase the demand for land in the entire area. Beyond this project, the axis is the closes and the most accessible to Lagos out of the entire Lagos-Ogun Property Market. There are currently three access routes to the area: Ojodu-Berger via Alagbole, Omole-Phase axis via Grammar School and Agege-Iju Road via Ishaga-Ajuwon.
Demand for land in these areas are expected to increase exponentially in the coming years and real estate pundits are of the opinion that land prices over the next two to three years will likely increase by up to 500%; considering that the road project would most likely be completed by then.
Despite the slow-pace of work on the Lagos-Badagry 10 land expansion project (a project expected to make significant impact on land prices in the entire Agbara-Igbesa axis), findings have shown that property prices over the last one year saw substantial increases. In Agbara land prices over the last twelve months moved from N3million-N4million to N6million-N10million, Igbesa from N1.5million-N2million, N2.5million-N3million and Atan from N1million-N1.5million to N1.5million-N2million.
The prospect of the completion of the ten lane Lagos-Badagry Expressway with a mono-rail track is expected to continue to push property prices up in the axis. The impact of private real estate developers who now number more than 500 in different parts of the area is also predicted to continue to make property prices soar in the area. The anticipation is that as demand continue to rise in the area and availability of virgin plots continue to dwindle, land prices over the last five years could go as high as 300%.
In the main Sango-Ota area,land prices over the last twelve months have moved from N7million-N10million to N15million-N20million, while in the interior areas like Ijoko land prices have moved from N4million-N5million to N6million-N8million. In Ifo down to parts of Arigbajo, land prices moved from N1million-N2million to N1.5million-N3million.
The major factor driving property prices up in these areas have been identified as increasing demand and a mass exodus of low-income would-be home owners to the area. The trend is expected to be sustained over the next few years as a result of rising prices of other areas that would have been options for low-income property investors within the Lagos-Ogun Property Market. Improved levels of infrastructure is also expected to continue to keep property prices up in these areas.
The newly constructed Abule-Egba Bridge is already making a significant impact and traffic time within the area has improved considerably. The prospect of the Bus Rapid Transit Scheme (BRT) being extended to the area has also been tipped by pundits to have impact of the already rising land/property prices of the area.