Although bridges and roads are primarily constructed to bridge the distance and ease movement between two locations, the reality in real estate terms is that such project help to bridge property price gaps between such locations. In the long run, good road networks helps to give real estate investors swift returns both in terms of capital appreciation and rental returns.
THE PROJECTS
Earlier in the week, it was all excitement for residents of Ipaja, Aiyetoro, Peak Thomas and other sub-urban communities in Alimosho area of Lagos State, Monday, as Governor Akinwunimi Ambode opened up these areas with a network of 21 roads and two bridges all measuring approximately 27.4 kilometres.
There is no gain saying that Alimosho is the biggest, by population, of the 20 local government areas of Lagos State, and plays critical role in the political calculations of the state. The two bridges commissioned are Ikola Road Bridge about 7.2 km and the Aiyetoro road bridge (1.2km), which links the boundary communities of Aiyetoro with Ogun State.
Some of the 21 roads are Ogunseye road (from Ajasa/Command to Ikola road); Oko Filling road (from AIT to Ilo River) and Osenatu Ilo road (from Ibari road to Ilo River). Others include Amikanle road (from AIT to Ogunseye road); Aina Aladi road (from AIT to Ilo River) and Aiyetoro road (from new Market/Ishefun road intersection to Ilo River). It will be recalled that the construction of the roads and bridges, handled by Visible Construction Company, was flagged-off in March 2017.
Speaking at the commissioning, Governor Ambode said it was imperative to open up sub-urban communities to decongest the urban centres, reduce traffic congestion and create better life for the people.”Alimosho has been a loyal constituency since Asiwaju’s administration. So, in return, we are giving you the dividends of democracy with these roads, so that we can connect you to the rest of Lagos.”
Just as we have connected the Itele community in Ogun State, we are trying to do the same on Epe-Ijebu-Ode Road, Ikorodu-Imota-Itokin road and it is the same thing that we are trying to do on Mile-2-Badagry and Seme road.”It is imperative that we do these roads so that we boost economic integration with neighbouring states,” he said.
Ambode said such development would also reduce the rush to the centre and allow new families and home owners to build up in other places.He said that the new roads would serve as alternative routes to decongest the Abeokuta Expressway and reduce travel time.”This inauguration is historic because it was Asiwaju Bola Tinubu’s vision.
He started it with the LASU-Iba road up to Igando and Egbe.”My predecessor, Governor Raji Fashola, took it up to Ipaja; all in a bid to build a new economy in this particular axis. So, this administration has continued from Ipaja to Ayobo to command and the bridge constructed in Aboru to link Abesan.”
Speaking also, Solomom Olamilekan, a senator representing Lagos West Senatorial District, said that Alimosho was one of the biggest beneficiaries of the Ambode led-administration with the construction of the roads. Commending the state government, on behalf of the communities, Abiodun Coker, chairman, Community Development Association, said the Megida-Ishefun road in Ayobo-Ipaja would reduce the hardship hitherto experienced by the residents in the area.
Abiodun Oduye a real estate investment expert and broker who resides in the area says the construction of the roads and bridges have further added impetus to the assertion that “you don’t wait to buy real estate, you buy real estate and wait”. According to Oduye, real estate investors who had the foresight to move into these locations like 10-20 years ago are sure to reap bountifully the benefits of moving before the market moves beyond them. “It will only take a real estate investor with strong passion and sagacity to come and put money in these location 20 years ago. Accessing the whole area at that time was almost impossible. It was hell. There were tick forests and swamps everywhere. But some of us and many other investors in the area today new it wasn’t going to remain like that forever”, Oduye explained excitedly.
Chief Philips Balogun another real estate investor in the area gave an indication into how property prices have moved in the area over the last two decades and how it may further rise now that a better access have been created for the communities. “Twenty years ago, it was easy for an investor to get a plot of land in the whole of Ayobo, Command down to Aboru for as low as N50k-N100k.
In the inner areas, it was even cheaper than that. There were simply no road and so it was extremely difficult for investor to come in. But now even before the roads and the bridges were constructed, plots in these areas have started to sell for between N1.5m and N2million. There are even places where plots sell for as high as N3million-N5million in these areas”, Chief Balogun enumerated. He added that property prices in the areas are set for astronomic rise.
“Rents in the area will start to increase; that I can say for sure. 2bedroom bedroom flats which goes for between N200k and 250k per annum may jump to N300k and N350k even before the end of the year. My predictions are that land prices in the area will hit the N10million mark in the next two or three years”.
WHERE ARE THE AFFORDABLE INVESTMENTS IN THE AREA?
For investors looking at investment opportunities that are less than N1million or like in the region of N500k, Babajide Adesanwo a real estate Surveyor and Valuer who understands the market of the areas says such investors should concentrate on the Ogun State sides. “The reality is that most of the areas that fall in Ogun State only have demographics that make them Ogun State but there are really no economic indications to show that.
The impact of Lagos on these locations will be massive and that is what will happen to real estate investments in these areas. All the areas within the Ilo River and Ikola that fall in Ogun State are good locations to invest now that land prices are still relatively low there”, Adesanwo hinted.
For those who have between N2million and N5million to invest in properties, Adesanwo says Ayobo, Command and Aboru are perfect locations to put money now. “These are the central areas now and the focal parts in the projects that the Lagos State Government has just commissioned. The reality is that there is now the possibility for property investors in these areas to get an average of 30%-50% annual capital appreciation on their investments. 21 roads and 2 bridges at the same time is not a joke. The impact will be massive”, Adesanwo says.
He however cautions investors to be careful about government acquisitions in the area. “There are lots of plots in these areas that are acquired by the government and I advise that investors should do the necessary due diligence before putting monies down for any land or property in the area”.
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