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Landed Property Prices Soar On The Island In Lagos

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The increase of commercialization in certain areas in Lagos has caused the landed property prices to skyrocket as they currently command the highest value in the state. The areas include Lagos Island, Banana Island, Old Ikoyi, S/West Ikoyi, Victoria Island, Ikeja GRA, Maryland and Alausa.

The average property price recorded for land, 3-bedroom & 4-bedroom rental and office space prices for Lagos Island, Banana Island, Old Ikoyi, S/West Ikoyi and Victoria Island is said to be N322, 229.00. This is closely followed by Ikeja GRA, Maryland and Alausa with N149, 034.

This data is according to a recent report released by the Lagos State Branch of the Nigerian Institution of Estate Surveyors and Valuers (NIESV). The report titled ‘Lagos Property Market Consensus Report H1 2020’ is an encompassing one that identifies developing and already developed areas in the state while also reporting the property values in the various areas of the state.

The document, which is the first of its kind was endorsed by the chairman of the Lagos branch of NIESV, Dotun Bamigbola in an agreement with 178 Estate Surveyors & Valuers and property professionals in Lagos.

The maiden report is said to cover the half-year (January – June) of 2020 with data on rental and sales values of residential and commercial properties from 30 major neighbourhoods across Lagos state.

According to the report, Banana Island, Lagos continues to maintain its status as the most expensive property location in Nigeria and commands the highest value across all property categories, while Victoria Island, home to luxury apartments, flats, maisonettes and penthouses recorded a high rental and sale price for a 4-bedroom house.

In details, the upper-class markets, Banana Island and Old Ikoyi recorded an average of ₦143,333 / square metres and N105,263 / square metres for office space respectively. Property data from these areas show a high response rate from serviced commercial and residential uses according to the report.

It was indicated that three-bedroom flat rental goes from N5,841,835, four-bedroom detached rental-N11,087,879, three-bedroom flat sale-N107,684,863, four-bedroom detached sale-N240,773,801 and the average rent for office space-N79,607.

The Zones: The report revealed that Lagos state has to be divided into 7 zones to be able to ascertain in detail the average property values per location. Banana Island, Lagos Island, Old Ikoyi, S/West Ikoyi and Victoria island was grouped into Island 1. Island 2 followed with Lekki Phase 1, Ikate, Osapa, Agungi & Chevron, while Island 3 was grouped into Ajah, Sangotedo, Awoyaya & Lakowe. For Mainland 1 Surulere, Yaba, Ilupeju & Gbagada were grouped while Amuwo Odofin, Isolo, Festac, Apapa were grouped for mainland 2.

Ikeja GRA, Maryland, Ikeja & Alausa which consists of the second-highest land prices as stated earlier was grouped into Mainland 3 and finally, mainland 4 included Ogba, Ogudu, Magodo GRA 1 (Isheri) & Magodo GRA II (Shangisha).

The NIESV chairman revealed that landed property prices and house prices in Island 2 and Island 3 zones are likely to keep increasing as the area welcomes more development.

“Major projects like the ongoing Dangote Refinery, Lagos Free Trade Zone, 4th Mainland Bridge and new city – Alaro City, which are all expected to come on-stream in a few years upon completion, will further trigger the rise in property values in the zones.” the report read.

Recall that in August 2020, Bamigbola had announced the then ongoing research carried out by the Research and Development Sub-committee of at the Lagos State Branch of the NIESV institution, on the property market in Lagos with contribution from 172 firms of the estate. This he said was worked upon to determine the effect of COVID-19 on various fronts of the economy.