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Stats: 2,118,210 members, 4,586,712 topics. Date: Saturday, 17 November 2018 at 11:55 AM
|A Comprehensive Review Of Ibeju Lekki And Guide To Buying Lands In The Area by Icon4s(m): 4:50pm On Jan 17|
OVERVIEW OF IBEJU LEKKI
The Ibeju-Lekki area of Lagos state is seen as the next hot spot for development by several real estate developers and industry experts alike.
Amongst other things, there are plans for the development of a Free Trade Zone (FTZ), Dangote refinery, seaport, an airport, Pan-African University in the area. It is also one of the locations for the Lagos Smart City deal with Dubai ( http:vanguardngr.com/2016/06/lagos-signs-historic-smart-city-deal-dubai/ ). Experts are forecasting that these projected developments coming into the area will increase economic activities in the area, create thousands of jobs and generally make the area a major business district in the country.
Following the current real estate trend in Lagos, estate developers are using these prospective developments as a marketing campaign to lure the public to invest in landed property in the area, as it would be of great value in the near future. The idea is to invest in the area now that it is less developed and relatively affordable, as against when the area is fully developed and property prices skyrocket.
This article aims to review the Ibeju-Lekki area, analyse its prospects in light of the much-anticipated industrialisation, critically review real estate developments in the area, and highlight those that will be of great value in the future; based on Location, Price and Reputation of the developer.
PROSPECTS OF INDUSTRIALIZATION IN IBEJU LEKKI
Ibeju-Lekki is a large local government area, starting just after Sangotedo and extending all the way to Epe (see Google map).
Ibeju-Lekki can hardly be described as a suburb of Lagos these days, as its exterior parts are already fully developed and integrated into the Lekki and Ajah area of Lagos. As the Lekki Expressway is being widened into a 6 lane express further down, residential and commercial developments follow correspondingly. These developments also come with an astronomical rise in the cost of property. Also, as gated estates with modern infrastructure seem to be the norm in Lagos, several of these are sprouting all around the Lekki area and also following the pace of development into Ibeju Lekki. Areas such as Abijo, Lakowe, and Awoyaya now have several estates, with the cost of properties in them steadily increasing annually.
However, these parts of Ibeju-Lekki are not the point of focus with regards to the expected industrialization. Most of the industrial developments are taking place along the Lekki Free Trade Zone road, off Eleko Junction along the Lekki – Epe Expressway (see Google map). This place is approximately a 1 hour drive from Ajah, and the traffic duration is expected to increase as commercial activities increase further down the Lekki – Express.
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.
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.
However, from our visits and analysis of the area, and a review of the government’s commitment towards the success of these projects, not all of these projects may come to fruition in the immediate future (1-5 years). This is important to note, as several estate developers are selling lands in various parts of Ibeju-Lekki with hopes that its value will exponentially appreciate when the expected developments are put in place.
REVIEW OF PROPOSED PROJECTS IN IBEJU LEKKI
LEKKI INTERNATIONAL AIRPORT
The Lekki Airport is a pipeline project tied to the immense success of the Free Trade Zone, Deep Sea Port, and the availability of investors. The vast land on the left, approximately 8KM to the Epe Bridge (while driving along Lekki – Epe Express) is the site of the proposed Airport.The Lagos state government intends for it to be a Public-Private Partnership project and is still shopping for investors to partner with to actualize the project. The site is still vacant.
However, when it is eventually built, it would instigate the appreciation of properties within the vicinity; similar to the way the Ikeja Airport and other airports across the country have commercial activities around them.
Estate developments in this area include Lagoon Courts, Brooksville Courts, Roseberry Estate and Folk-land Estate
PAN ATLANTIC UNIVERSITY CAMPUS
Pan Atlantic University (parent institution of Lagos business school) now has its main campus at Elaraingbe, shortly after Eleko Junction in Ibeju-Lekki. The school has begun its undergraduate programs on this campus.
However, this has definitely not added much value to landed properties nor boosted commercial activities in the area as the University is privately owned and students live and interact within the university campus.
Real Estate developments in this area include Lekki Villas Phase 2.
LEKKI FREE TRADE ZONE
The Lekki Free Trade Zone is located along Free Trade Zone road (FTZ road). The FTZ is already active with about 70 companies already in operation (particularly Chinese multinationals). However, commercial activities have not picked up as the Deep Sea Port expected to boost commercial activities in the zone is still under development.
Lekki Free Trade Zone, Ibeju Lekki, Lagos
The Free Trade Zone will certainly be a success as Lagos is one of the biggest commercial centres in Africa and businesses would appreciate the tax incentives it offers.
Estates along the Free Trade Zone road are Rehoboth Gardens, Oakwood Gardens phase 2, Paradise Gardens, Pen Gardens Phase 1, Victoria Spring Courts, Cherry Wood Courts, Brooksville Courts.
DEEP SEA PORT
The Lekki Deep Sea Port is located within the Free Trade Zone and is already under construction. (Read more here – http://thenationonlineng.net/deep-seaports-prospects-and-challenges-2/).
Dredgers in Ibeju Lekki, Lagos
Historically, ports are known to become commercial hubs and population centres, with a collateral development of related infrastructure and businesses due to port activities. The timeline set for the completion of the Lekki deep sea port is 2019 (Read More Here – http://thenewsnigeria.com.ng/2016/03/1-65bn-lagos-Lekki-seaport-for-completion-2019/), but a more reasonable guess for when it will become fully active will be somewhere around 2025.
Dangote group is investing $14 billion in the development of a refinery, a petrochemical and a fertiliser plant within the Lekki Free Trade Zone. These projects are currently under development and over $4 billion have been spent on the projects already, but not so much physical work has been done. When the Neighborhood Review team visited the site, workers were still preparing the ground, dredging, clearing the forest, etc. The fertiliser plant is under construction as some structures have already been put in place indicating the project could meet the set target of being in operation by 2019.
Bulldozers at Lekki free trade zone, Ibeju Lekki, Lagos
Dangote Refinery Ibeju Lekki, Lagos
Dangote group has stated that the refinery could also be in operation by 2018, but a more feasible estimate would be 2020, considering the current state.
(Read more at http://www.dailytrust.com.ng/news/business/-we-will-sell-fuel-from-dangote-refinery-at-international-price/139642.html#S8WeffUbBfErIYtB.99)
This refinery plant would be the largest in Africa.
GOVERNMENT COMMITMENT TO THE SUCCESS OF PROJECTS IN IBEJU LEKKI
The present and past governors of Lagos state have reiterated their plans to ensure the projects in the Ibeju-Lekki area are successful. Shortly after being sworn into office, current Lagos state governor Akinwunmi Ambode visited the Lekki Free Trade Zone to inspect ongoing developments.
map from Lekki to Free trade zone
Also, the Lekki-Epe express is currently being expanded.
Governor Akinwunmi Ambode at the commissioning of the Ajah flyover bridge (Jubilee Bridge) on 17 May 2017 said – “We had to give this project priority because of its strategic importance to the economic growth of the Lekki Free Trade Zone and the Ibeju-Lekki-Epe axis. This axis will play a key role in the future prosperity of Lagos State as the home to many multi-billion naira private investments in the Lekki Free Trade Zone as well as the upcoming seaport and airport.”
PROJECTED PATTERN OF DEVELOPMENT IN IBEJU LEKKI BY 2025
The Lekki FTZ Master Plan is aimed at developing the zone as a modern satellite city in Lagos, with new economic functions, urban service industries, and real estate property development as the pillar; so as to promote the overall industrial development of the Zone.
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).
EXPECTED FEATURES OF FREE TRADE ZONE ROAD BY 2025
One unique feature of the FTZ road is that there is the absence of a rural community in the vicinity, and the majority of the land in the area is being procured in large quantities by estate developers. This means the area can easily become a highbrow area as it will mainly comprise of planned residential estates, the Atlantic Ocean beach, the Free trade zone and offices of several businesses providing support services to the Refinery and Sea Port.
Also, the land here is mostly dry, unlike in Ibeju Town and Eleranigbe where parts of the lands are wet and waterlogged.
Again, the central road in the area is wide and the road allowance available gives ample room for further expansion. The Lagos state government is keen to avoid the Apapa mistake and will likely expand the road when commercial activities peak.
BEST AREAS TO INVEST IN LANDED PROPERTIES IN IBEJU LEKKI
There are several estate developments all around Ibeju Lekki, right from the exterior parts (Abijo, Awoyaya), all the way after the Epe Bridge. However, in terms of projected future value, those along the Free Trade Zone road, Eleko road, and those in Eleranigbe are expected to appreciate the most; firstly because of their proximity to the would-be commercial hub, and secondly because these areas will likely develop into highbrow areas since majority of the land has been sold to estate developers who will build well-planned estates.
It has been observed that planned residential neighbourhoods (e.g Ikota Villa Estate and Chevy view estate) experience more development and become far more expensive than areas that develop as a result of the public buying lands directly from the community, without recourse to any proper layout or plan covering the area (e.g Agungi).
Other notable areas in Ibeju Lekki with estate developments are highlighted below.
This area is developing as an extension of the present Lagos, along the Lekki Epe expressway.
Map of Abijo to Ibeju Lekki, Lagos
1.The development of the area is not tied to the success or failure of any major project.
2.Smaller business districts are already developing in the area such as Yomade shopping complex and Mayfair Gardens shopping complex (developed by HFP engineering, similar to Ikota shopping complex, but smaller).
1.Sometimes, rush hour traffic to Victoria Island could last up to 2 hours, and possibly 45 minutes’ drive to Lekki Free Trade Zone (due to expected minor traffic) when the port and refinery become fully operational. It is quite caught up in the middle.
2.Because it is not located in the immediate vicinity of any of the major business districts, property appreciation rates will be slower than those closer to the major business districts.
Prices of Lands in these areas are currently nearly 3 times that of lands estates along FTZ road. However, the reverse may likely be the case in 10 years if the projects along FTZ road are successful. This is similar to the way properties on the mainland were far more expensive than properties in the VGC area of the island 20 years ago, but now the reverse seems to be the case.
Land in estates in this area currently sell for between 5 million – 18 million, depending on the facilities and infrastructure in the estate. Estates in this area include Mayfair Gardens Estate, Arium Estate, etc.
These areas are further down the Lekki-Epe express. Eleko Junction is the diversion (right) that leads to the Free Trade Zone road, while Elarangbe is located slightly further down after Eleko Junction. The Eleko road terminates in the FTZ road. Major developments in these areas include Pan Atlantic University (LBS) undergraduate campus and the proposed Lekki Airport. These areas are reasonably close to the Lekki Free Trade Zone (10 – 20mins), and would likely provide more affordable residential opportunity for those working in the Seaport, Refinery, etc. than areas along FTZ road when the area becomes fully industrialised in 7-10 years. Currently, lands in proposed estate developments in these areas are the most affordable and generally among the cheapest in Lagos state (Havilla Garden Estate- N675, 000 per plot of 600sqm).
1.Very affordable land (one of the most affordable in Lagos), though most of them do not have safe title documents
2.Very close to the proposed site for Lekki Airport and reasonably close to FTZ
3.Property appreciation will be higher than in many other areas when the Seaport and Refinery become fully operational.
4.If / when the Lekki International Airport is eventually developed; the area might also house commercial activities such as Embassies, Hotels and Offices.
1.The area is currently largely undeveloped (a very large bush), and major developments may only start after developments in the FTZ road has peaked.
2.The Airport project may not be actualized in the immediate future (10 – 15 years). Also, the Pan Atlantic University does not in any way boost commercial activities in the area as the University is privately owned and its activities are restricted to the confines of the school premises.
Estates in these areas include Royal Posh Island, Lekki Villas Phase 2, HavillaGardensPhase 1, Havilla Garden Phase 2,
Ibeju Town is a large rural community roughly 13 minutes drive from Eleko and 30 minutes from the Lekki Free Trade Zone.
It is a fully developed rural town with narrow central roads and rural buildings constructed in a congested manner. Buildings here are constructed without proper layout or plan and in many cases constructed right up to the edge of the road. In some areas, there is hardly any room for easy vehicular movement.
There are some proposed estate developments at the interior parts of this village such as Lekki Villas phase 2, etc.
Lands in these estate developments are currently sold for around 1.8 million per plot, but it is noteworthy that some lands in the area are waterlogged
1.It is reasonably close to the proposed new airport, and if/when the international airport is eventually developed, the area might be redeveloped and may also host commercial activities such as embassies, hotels and offices.
1.The area is a big rural town
2.Lands in most estate developments here are waterlogged
3.The roads leading to many of these estate developments are very narrow and built up on both sides.
4.Since the upcoming estates here are within rural communities, appreciation may be slower than in areas that have estates everywhere.
CRITICAL ANALYSIS OF CURRENT ESTATE DEVELOPMENTS IN IBEJU LEKKI, THEIR PRICES AND FUTURE PROSPECTS
Almost all these estates are developed using an off-plan model, where the developer procures the land from the local community, obtains all the required government approvals, starts a marketing campaign to sell the lands in the estate, then uses the funds obtained from selling these lands to construct the actual estate, provide necessary infrastructure, and then partition & allocate plots to owners for individual development.
It is important to take note of the infrastructure to be provided in the estate as stated in the purchase contracts when buying, because, in majority of the estates the developer only provides perimeter fencing, and demarcation of the estate land into plots, with markings for roads and drainage channels, in line with the structure available on the layout.
Courtesy Neighbourhood Review © 2018
NOTE : I am not a property developer neither am I a property marketer. I am an investor that stumbled into this material and decided to share to other investors and potential investors.
|Re: A Comprehensive Review Of Ibeju Lekki And Guide To Buying Lands In The Area by Homeyfav: 12:06pm On Sep 11|
Lagos state committed to the success of ibeju lekki projects
|Re: A Comprehensive Review Of Ibeju Lekki And Guide To Buying Lands In The Area by ChrisKels: 5:09pm On Oct 29|
Nice one, I go like purchase a plot or two there but bfor then, ask semid4life to unban me on our Eagles thread. Dey had to ban me bkus I called out komekn for telling lies. Nawa oo
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