Land prices in Lekki, Ikoyi, others grow by 63% in 2 years – Report

Analyses of the average land prices in key nodes of Lagos State indicate that there was an increase between 22 per cent and 63 per cent in the last two years.

Lekki Phase 1 recorded the highest increase of 63 % in land prices between 2019 and 2021 followed by Agungi, also along the Lekki-Epe expressway; while Sangotedo had over 51 per cent increment within the period under review.

This was part of the analysis of the 2022 Nigeria Real Estate Market Outlook released by the foremost real estate investment firm, Northcourt.

The report obtained by Daily Trust added that Ikeja GRA land value appreciated by 22 per cent; selling for an average of N360,000 per square metre (sqm) in 2021.

Ikoyi, which only appreciated by 33 per cent according to the report, however, remains the most expensive with a square metre of land costing between N550,000 to N1m, according to Northcourt analysis.

For Lekki Phase 1, the average price per sqm is around N322, 000 or N193m per plot (at 600sqm); GRA Ikeja is sold for N360, 000.

With the 2023 election inching closer, prices of land are further projected to grow as the report further indicates.

The report said: “Land prices grew in almost all nodes considered. Leading locations such as Ikoyi traded well over the N500,000psm mark with plots in Banana Island reaching N1m per square metre, where available.

“Land in gated communities attracts a premium for the security benefits that they provide. Prices in second-tier cities such as Benin, Abeokuta and Ibadan are also projected to spike over the next few years.

“Prime new town locations attracted more investment, much of which was local – Eko Atlantic (Oxygen and Periwinkle residencies) and Orange Island, Lagos. Other new towns include Shoreline Estate, Alaro City and Isimi Lagos.

“Seamless land transactions are a priority of the central government as regulators partner with the private sector to remove impediments. And as the nation moves closer to the 2023 election cycle, land prices are projected to grow.”

The report further indicated that the Federal Capital Territory (FCT), Abuja has witnessed demand in residential assets increase due to its position “As one of the more secure locations in the country.

“This demand has further driven the rapid redevelopment of retail, hospitality and residential assets. Residents report a pace of commercial activity similar to Lagos in areas such as Wuse, Gwarimpa, Jabi, Wuye, Garki Area 1, Life Camp, Kubwa and Katampe nodes.

Commenting on the outlook, Ayo Ibaru, Chief Operating Officer/Director, Real Estate Research, Northcourt, said despite the challenges posed by the pandemic in 2020, “The investment rationale for owning real estate remains attractive.”