When a major development comes into an environment, the impact is usually felt positively or negatively or both. One of such developments is the proposed Lekki-Epe International Airport in Lagos.
Recently, the federal government gave Lagos State government approval to build the airport which will be sitting on 3, 500 hectares of land and will cater to the travel needs of about five million people yearly.
The expectation is high that the project, which will be delivered through Public Private Partnership (PPP) with both local and foreign investors, will have a significant impact on real estate in that corridor.
Findings by MDS Properties research team show there are benefits and potential risks from this project as it relates to the real estate market within that axis.
“What we have seen is widespread optimism on the economic prospects for the Lekki peninsula as well as the Lekki Free Trade Zone. The airport project is a response to the pace of development on the Lekki-Epe axis, which is now a fast-growing hub for commerce and industrial activities,” David Mbah, Co-founder/CEO, MDS Properties, noted.
According to him, their research team has spotted a few key benefits of the project to the environment, saying that the project would stand as a foundation for growth, creating platforms for businesses to thrive.
“It will also lead to a sharp increase in property prices; we expect a 20-30 percent rise in land prices within 12 months; it will reduce journey time and make commercial hubs in the Lekki axis more accessible; and will stimulate tourism, which in turn, will lead to more job opportunities, economic growth, and increased housing demand,” he said.
Mbah added that the airport project would also drive stakeholder enthusiasm for transit-oriented real estate projects and there will be an uptick in the supply of hospitality and tourism-related developments.
“The proposed airport will also boost the city’s image and consolidate the economic value of the Lekki Free Trade Zone project, making it more attractive to both local and foreign investors,” he said.
He pointed out, however, that the new airport would add more value to commercial than residential properties, explaining that residential properties were expected to face such risks as aviation noise; traffic noise and emission levels.
“Traffic-related noise is a growing public health concern, and many studies have drawn a correlation between persistent noise levels in residential areas with several health challenges such as high blood pressure, hypertension, and heart disease, he said.
But, ultimately, he said, the benefit of the proposed airport far outweighs its drawbacks, making it one of the most important economic drivers for the Lekki Peninsula real estate market.
