A Lekki/Epe Expressway has always topped the real estate chart in sub-Saharan Africa. Recently, it got a boost with the approval of the Federal Government for an international airport on the axis. Operators say with the latest addition, it has become the nation’s real estate, industrial and financial hub, reports OKWY IROEGBUCHIKEZIE.
The Federal Government has given approval for an international airport to be built on the Lekki axis. The airport to be built near the Lekki Free Zone will assist manufacturers and other business owners to export their products.
For the real estate sector, operators have said it will receive a boost from the inflow of Foreign Direct Investment (FDI) and local investments in the area.
Aviation Minister Hadi Abubakar Sirika commending the state said: ”Lagos with its GDP, housing and stock exchange, 200 financial institutions, 25 million people on 5,377 square kilometres of land mass, including the Eko Atlantic, all the industries need is to be connected to the world. For Lagos to continue to be the centre of the economy, the best way to link the city to the world is through infrastructure, especially civil aviation.”
Governor Babajide SanwoOlu responding said the state government was engaging in Business2Business as well as Government2Business to develop economies like Lagos State’s. He said it was about giving them a platform with infrastructure and opportunities for businesses to thrive.
Sanwo-Olu said the project, expected to begin next year, would be built on 3,500 hectares of land.
“ The master plan and aeronautical designs of the planned airport were in place, studies were ongoing about strategies, funding and other issues, after which the project would be taken to the market place.”
He added that the airport was expected to cater to a minimum of five million people yearly, and would be constructed in partnership with local and foreign investors.
On the planned airport, a major developer on the axis and Chief Executive Officer, ESSO Properties Limited, Dr. Smith Ezenagu, said the biggest winner would be the real estate sector. He said the corridor had witnessed massive rise in land purchase and the sale of land and property would increase now.
According to him, Ibeju-Lekki is the fastest growing piece of real estate in West Africa, and this has been largely due to the massive projects springing up in the area.
Ezenagu said: “The emergence of the Dangote Refinery and Fertiliser Plant and the Lekki Deep Sea Port and Free Trade Zone have seen investors from within and outside Nigeria trooping to the Lekki axis in preparation for the boom that is about to happen.
“Now with confirmation that the airport is about to materilise, it will further fast-track the presence of more regional headquarters, hotel chains, even better road networks and the much-talked about 4th Mainland Bridge to ease traffic for Lagosians, thus generating more revenue for the government and creating more jobs for Lagosians. It will also witness more investments from the diaspora.”
Read Also: UPDATED: Sanwo-Olu receives approval letter for Lekki Airport
The ESSO Properties chief said Epe, a sleepy town near Lekki, might perhaps be the biggest “gainer” from this project. He said recently the town had witnessed a rise in development as a result of government projects and real estate companies that has found it attractive.
On more positive result from the planned airport, Ezenagu said there would be automatic increment in the cost of real estate, high influx of corporate entities who would most definitely want to set up near an “international airport” and high-end developments.
His words: “There will be massive increment in both local and foreign investors and the presence of the airport will give way to more government projects in Ibeju-Lekki and its axis thus, further opening up the area and its environs. I also believe that more jobs means more people, and more people means a high demand for rental properties and spaces and existing properties will triple in prices.”
He advised the public to be careful as, according to him, this is not the time to buy a land or own a land without a proper title as the government would clamp down on untitled land and there might be little or no settlement for people that bought untitled properties.
Chairman, Nigeria Institution of Estate Surveyors & Valuers (NIESV) Lagos State Branch, Olabisi Demola-Alade, while commending what she called a bold move by the state government, said the planned international airport would complement existing infrastructure in Ibeju-Lekki, such as the Lekki Deep Seaport, Dangote Refinery and the Lekki Free Trade Zone.
She said the airport would serve as a catalyst for development and urbanisation within the Ibeju-Lekki axis known as “The New Lagos”.
She stressed that people would always migrate towards the direction of economic activities. The implication, according to her, is that more and more people will move towards Ibeju Lekki and its environs.
Alade said the project would demand an increase in the development of housing and accommodation on the axis which would be a boost in the real estate business.
She said: “There will be a high demand for landed properties due to human migration to the area this will definitely lead to a drop in supply of the commodity. Outcome of this will lead to increase in sales, leases with very high cost of building construction.”
Also a lawyer and quantity surveyor, Jide Oke, said the Lekki International Airport would be a boost to real estate in the Lekki/Ajah axis.
In the first instance, it will shorten travel time for residents who intend to travel. Instead of having to spend two to three hours to get to Ikeja, they will spend a shorter time for the trip.
He said: “There will be a surge in residential accommodations and also the rents of such properties will go up because of the benefits. Same way for hospitality business and buildings, more hotel building will spring up in Lekki Axis because of influx of travellers in the axis. Similarly for other commercial buildings which may increase in the area because of upsurge of commercial activities due to the presence of airport in the area”.
“On the whole, we would expect rates of properties to rise in this vicinity because of the airport. Real estate will expectedly boom rapidly in the area.
“More renovation works are expected because of the upsurge as most speculators and investors would want to cash in on this new upsurge and opportunities it presents. It is a time of boom for real estate,’’ he stated.
Also, Vice Chairman, Nigeria Institution of Estate Surveyors & Valuers, (NIESV) Gbenga Ismail, said infrastructural development was positive news for the area.
He said with an airport coming to Epe and coupled with the free zone development, the urbanisation of Epe had begun, therefore, land value should be expected to further rise.
Ismail said the airport was a catalyst for economic development and would trigger human and trade traffic to the area. It would also improve employment in the short term and hopefully in the long term.
“The impact on real estate will be enormous, especially for the Ibeju Lekki and Epe environment. We will begin to see a steady transformation from rural to sub-urban and possibly city status. Further improvement and sustained infrastructure development will see land values rise and property development increase.”