DESPITE the nation’s economic downturn and the ravaging COVID-19 pandemic, which slowed down construction activities, land, rent and house prices are maintaining upward trajectory in major Lagos’ property market.
According to the field survey carried out by estate surveyors on the cost of lands, rental and sale values of residential and commercial properties in Lagos’ Property market, Banana Island, Old Ikoyi and Victoria Island recorded the highest prices.
Banana Island, Ikoyi and Victoria Island also recorded the highest rentals for office spaces in the state
It was also noted that Ikeja GRA maintained the lead in Lagos mainland’s property market
On the other hand, Lagos Island, though situated in the same zone with Banana Island and home to the highest offices and businesses, recorded low rental cost of N22,413 per square metre (sqm) .
The report attributed poor infrastructure to low rental cost and property values in Lagos Island Central Business District.
All these were contained in the Nigerian Institution of Estate Surveyors and Valuers (NIESV)’s Lagos Property Market Consensus Report H1 2020, obtained by journalists at the weekend.
The report divided entire Lagos State into seven zones namely: Island zone A (Lagos Island, Old Ikoyi, S/West Ikoyi, Banana Island, Victoria Island); Island Zone B (Lekki Phase 1, Ikate, Osapa, Agungi and Chevron); Island Zone C (Ajah, Sangotedo, Awoyaya and Lakowe); Mainland Zone 1 (Surulere, Yaba, Ilupeju and Gbagada); Mainland 2 (Amuwo Odofin, Isolo, Festac, Apapa); Mainland 3 (Ikeja GRA, Maryland, Ikeja and Alausa); and Mainland 4 (Ogba, Ogudu, Magodo GRA 1 (Isheri) and Magodo GRA 2 (Shangisha).
On cost of lands in zone A, Banana Island commands the highest land value at N407,500 per sqm, followed by Old Ikoyi – 364.048/sqm; Victoria Island –N313.571/sqm; South West Ikoyi (S/W) –N285.667/ sqm and Lagos Island –Ni80.357/sqm respectively.
On rental values for three-bedroom and 4-bedroom detached apartments in the above zone A, rents for three-bedroom cost N9.952 million in Banana Island; Old Ikoyi –N6.8 million; Victoria Island -5.586 million; S/W Ikoyi –N4.576 million and Lagos island – N2.294 million, while rents of 4-bedrrom detached cost N16.97 million in Banana Island; N15.416 in Old Ikoyi; N11.011million in Victoria Island; N8.443 million in S/W Ikoyi and N3.590 million in Lagos Island, respectively.
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Besides, the NIESV’s report noted that land and house prices in Island Zone B and C, comprising Lekki Phase 1, Ikate, Osapa, Agungi & Chevron, Ajah, Sangotedo, Awoyaya and Lakowe on the Lekki –Epe corridor have kept increasing in values as they welcomed more development.
In zones B and C above, Lekki Phase 1 leads in land’s cost at the rate of N173.519/sqm , followed by Ikate –N107.019/sqm; Chevron –N99.929/sqm; Osapa –N97.185/ sqm; Agungi –N86.200/ sqm; Ajah – N58.818/ sqm; Sangotedo – N32.833/ sqm; Awoyaya –N25.167/ sqm and Lakowe –N17.273/ sqm.
Accordingly, rents for three-bedroom in Zone B and C above cost N3.314 million in Lekki; N2.629 in Ikate; N2.461 in Osapa; N2.275 in Agungi; N2.716 in Chevron; N2.016 in Ajah; N941.887 in Sangotedo; N679.187 in Awoyaya and N560.417 in Lakwe; while rents for 4- bedroom detached house cost N3.314 million, N3.533 million, N3.551 million, N3.231 million, N3.673 million, N2.016 million, N1.6675 million, N1.118 million and N1.072 milion respectively in the locations.
The increasing land‘s cost and rent in Zone C to be specific, the consensus report stated was hinged on major projects like the ongoing Dangote Refinery, Lagos Free Trade Zone, Fourth Mainland Bridge and new Alaro City, which are expected to come on stream in a few years, adding that upon completion, they would further trigger rise in property values in these locations.
