PROPERTY APPRECIATION WITHIN IBEJU LEKKI
Experts forecast that in the next 10–15 years, a plot of land at Ibeju-Lekki will be selling for over N450 million.
The Ibeju-lekki area of Lagos state can be said to be the foremost centre of attraction and the next hot spot for development by real estate developers and investors.
It is no doubt that the wealth of Lagos is moving to Lekki and its environs because of its huge potentials arising from its status as a Free Trade Zone, the very first in Nigeria.
The goal of this article is to review property appreciation in Ibeju-lekki axis, and how individuals can take advantage of the ever-increasing development in this area.
OVERVIEW OF IBEJU-LEKKI
Ibeju-Lekki, a Local Government Area of Lagos State, is one of six South-Western states in the Federal Republic of Nigeria. It is approximately 75 kilometres long and about 20 kilometres wide. Ibeju- Lekki Local Government land area is about 646 kilometres square, equals one-quarter of the total landmass of Lagos state. Ibeju-Lekki is located at approximately latitude 40 15'north latitude 40 17' north and longitude 13015' east and 13020' east. The provincial government is part of the four created in Lagos State in 1990, out of the old Epe Local Government, with headquarters at Akodo. According to the National Population Commission (2006) census, Ibeju-Lekki had a population of 117,481 out of Lagos State’s total of 9,113,605. The spatial scope of this research is limited to the identified peri-urban settlements recognised by Lagos State Government in Ibeju-Lekki Local Government which covers 646 kilometres square.
The FTZ is realistically 45 minutes’ drive from Sangotedo, and 35 minutes from Awoyaya (also in Ibeju-Lekki), which is the closest place one can find supermarkets and other significant commercial activities.
Current industrial developments along the Free Trade Zone road are
(1) Power Oil Production Plant
(2) Lekki Free Trade Zone, which houses the Dangote refinery (which is expected to be the largest refinery in Africa by output capacity), Dangote Fertilizer and Petrochemical Plant, Lekki Deep Sea Port, and other industries as well as Multi-nationals.
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Other notable developments within the area include the Pan-African University new campus and the site for the proposed Lekki International Airport. If and when all these developments come to fruition, the area would be another major business district in Lagos with similarities to Apapa.
By 2025, the development of the Ibeju Lekki area would likely be in 2 discrete categories. Firstly, development along the Lekki- Epe Expressway will go further into Ibeju Lekki, causing industrialization to extend further into the area.
Secondly, the industries along the Free Trade Zone road will instigate commercial activities in this satellite city, resulting in a central business district in the Free Trade Zone area.
Most people who procure properties in estate developments in Awoyaya, Abijo, Lakowe and other exterior parts of Ibeju-Lekki LGA are people who work in the Lekki / Victoria Island business districts and do so because lands in these areas are cheaper than in the locations closer to Victoria Island.
Properties along the Free Trade Zone road (FTZ road) will be in the immediate proximity of the Free Trade Zone and at the heart of the new satellite town, thus these properties offer the best potential return on investment.
The developments and commercial activities in the FTZ can possibly employ as much as 50,000 people and lead to a town of up to 200,000 in population. With this, properties close to the FTZ will steadily rise in value based on their proximity to the business district, and by 2035, FTZ road would likely have a development pattern similar to that of Lekki Phase 1.
Residential developments in the exterior parts of Ibeju-Lekki (Awoyaya, Abijo, Lakowe etc.) will be located in between the two business districts of Victoria Island and FTZ and their value will appreciate at a slower rate due to their considerable distance from both business districts (about 1 hour 45 mins to Victoria Island and 45 mins to FTZ).
PROPERTY APPRECIATION
According to research, the rate at which Ibeju-lekki is growing is triple times over all other areas in Lagos. Property value appreciates fast and is constantly rising. A plot of land in Lekki Phase 1 as of 2001 was sold for 10million naira and in 2017, the same plot of land sells for about 140million naira. Thus, making the appreciation value a whooping amount of 130million naira.
In the same vein, a land bought in Ikota for 3.5 million naira about four years ago, is now worth over 12–15 million naira and as for Sangotedo (off lekki epe express way), a plot of land was sold for 750 thousand naira in 2004 but is now valued at over 5 million naira.
Other examples include:
IKOYI: In the ’80s, a Plot of Land in Ikoyi used to sell for less than ₦2million, but today (2018) it is priced from ₦300million above.
VICTORIA ISLAND: In the ’90s, a Plot of Land in Victoria Island used to sell for less than ₦10million, but today (2018) it goes for ₦300million above.
LEKKI PHASE ONE: In the 2000s, a Plot of Land in Lekki Phase One used to sell for less than ₦12million, but today (2018) it goes for ₦150million above.
OTHER FACTORS THAT WILL MAKE IBEJU-LEKKI RENTAL INCOME TO CONTINUALLY INCREASE
THE DANGOTE PROJECTS
Africa’s richest man Aliko Dangote is setting up the Dangote Refinery at Ibeju Lekki. It is the largest industrial complex in Africa. The project is slated to cost $14 billion (N2.8 trillion) of which Dangote is contributing $7 billion in equity. Over $4 billion worth of equipment currently sits on the site.
It is the largest single-train refinery project on the planet. During construction, the project will employ over 25,000 Nigerians. On completion, the refinery will have the capacity to refine 650,000 barrels of crude oil per day.
When this project comes online, Nigeria will save a minimum of $10 billion a year on imports. Dangote said when this project becomes fully operational; Femi Otedola will save at least N26 per litre on millions of litres of diesel and petrol which his companies import annually. These savings will be passed on to the consumers and it will take a lot of pressure off the banks
The plant has an export value of $6 billion per annum, meaning Dangote’s efforts will increase the amount of foreign exchange in Nigeria’s foreign reserves by at least 40% of current value on a yearly basis
LEKKI FREE TRADE ZONE
Another Massive investment at Ibeju Lekki is the Lekki Free Trade Zone — The first Smart City in Nigeria. It is geographically located in Ibeju Lekki. And already over N100 billion has been invested in this project.
The Master plan of the Lekki Free Trade Zone area is designed to be built as a satellite city in Lagos for eco-city for residents, dynamic commerce and trade and modern industrial business.
When fully developed, it will spread over an area of 805 hectares and will house a number of petroleum and petrochemical complexes, agro-commodity and other manufacturing industries.
Opposite the Free Trade Zone is the Lekki Deep Seaport. The Deep Seaport is designed to handle about 6 million Twenty-foot Equivalent Units (TEUs) of containers.
The deep seaport is proposed to be in full operation in 2020and it is estimated to create 169,000 jobs directly and indirectly.
The La Campagne Tropicana Beach Resort is another landmark on the Lekki Free Trade Zone axis. The Beach Resort is about 15km drives from the Dangote fertilizer plant.
All these projects, however, are expected to become operational before 2025.
CONCLUSION
Now you see that investing in Ibeju Lekki will guarantee you huge returns on your investment. Your capital would appreciate to an unbelievable proportion when this happens. Smart investors have started acquiring landed properties in anticipation for the capital appreciation that would soon hit Ibeju Lekki.
It is also important to note that not all lands in Ibeju Lekki are suitable for investment purposes because of their titles. Some lands are still not free from government’s acquisition, this is why it is necessary to buy your property from a registered company like Middlechase Property Limited.
For more information: www.middlechase.com and on Instagram: www.middlechase. If you liked this post, head over to Middlechase blog for more real estate insight!
