Hot spots for property development in 2013

| January 15, 2013 | 0 Comments

As economic conditions improve and with the completion of some ongoing infrastructure projects, locations such as Lekki, Victoria Island, Badagry, Yaba in Lagos; Airport Road, GRA and Aba Road in Port Harcourt, Rivers State; and Abuja are expected to witness more developments in 2013. DAYO AYEYEMI writes.

The 15 percent improvement in property values toward the end of last year as the market stabilised from the bust, is renewing investors’ confidence in real estate development.

Analysis from Financial Derivatives Company Limited showed that the market grew by 10.24 per cent in third quarter of 2012 compared to 10. 86 in third quarter of 2011.

As a result of stability in the market, some neighbourhoods are expected to attract more investments in terms of property development, no thanks to the accelerated road and rail infrastructures, and urban renewal ongoing in these locations.

However, investigation by National Mirror has shown that locations such as Victoria Island, Lekki, Ikeja GRA, Yaba, Badagry axis in Lagos, Airport road in Abuja, and GRA, Aba and Airport roads in Port Harcourt, Rivers State will hot spots for property development in 2013 as economic conditions improve.

Speaking with National Mirror, Principal Partner, Akin Olawore and Company, Mr Akin Olawore, said with the rate of ongoing road infrastructures development, the Power reform project, improved security and increased demand for accommodation, cities such as Lagos, Abuja and Port Harcourt would witness massive property development this year.

In Lagos, he explained that the delivery of road infrastructures would shape real estate sector in 2013. Some of the locations to attract property development, he said included Lekki, Victoria Island, Yaba, Ikeja GRA and Abule Egba on the outskirt.

National Publicity Secretary, Nigerian Institute of Building, NIOB, Mr. Kunle Awobodu, mentioned Abuja, Lagos and Port Harcourt as cities that will continue to witness rapid physical development in Nigeria.

According to his projection, near absence of flood in Lagos area in 2012 would encourage real estate developers along Lekki road, Badagry axis and Lagos-Ibadan Expressway to intensify their activities.

Despite security challenges in the northern part of the country, he explained that investors in real estate still consider Abuja relatively safe and positioned to bring greater returns on investment.

He stated that in Port Harcourt, especially towards the Airport and along Aba Road and Eleme axis would witness growth in physical development considering the relative peace there and high cost of accommodation.

He said, “The underlying factor here is the ability of the Rivers State government to improve on the road network. Attraction of developers to Badagry axis will definitely increase in the anticipation of monorail operation commencement by June this year.”

Principal Partner, Stephen Jagun and Associates, Mr Stephen Jagun, said people are now more interested in apartment more than before and that smaller accommodation is becoming more attractive.

According to him, two and three bedroom flats are becoming hot cake. He stated that locations such as Ikeja GRA, Lekki and Victoria Island are going to be hot spots for property development, adding that “Yaba on the Mainland is another location people are moving development to.”

He said, “At Yaba, investors are buying old buildings and redeveloping them. People have found out that it is cheaper to buy a house at N25million in Yaba and redevelop it and make their money rather than going to the outskirts which have not been developed and where there are no infrastructure.”

On government side, Jagun advised that it should concentrate on site and services by providing infrastructure to boost property development.

He is of the opinion that because of economic crunch, high end area will be limited to the rich while the middle income earners will be forced to areas where land is affordable.

He urged government to carry out deliberate policy about the amendment of the Land Use Act, adding that because land buyers have been at the receiving end due to major faults in the land law. “As a result of the law, land buyers buy land twice; first in the hand of omoonile and again, from government.

This increase cost of building,” he said. He enjoined government to release Pension fund for housing development, saying the National Housing Fund is not enough. The locations below will witness massive property development this year:

Lekki: The corridor is expected to attract more property development following the ongoing Lekki-Ajah road project by the Lekki Concession Company, LCC; the Free Trade Zone (FTZ), the Independent Power Project and Lekki Port projects that are coming up in this location. All these projects, Olawore said would further open up the location for businesses.

He added, “Investors are keen to take position along Leeki Peninsula way, but they are also want to see that the infrastructure that are going on will come up quickly as possible.

“When the infrastructures come up, then it is a case of whether your business is at the FTZ or island. So, distance will no longer be a problem.”

Victoria Island: Improved infrastructures in Victoria Island and its closeness to Lekki and Lagos Island, the commercial hub of Nigeria put it at an advantage for property development by investors. It is expected that the traffic in Victoria Island will improve following the completion of the rehabilitation work on Lagos’ Third Mainland Bridge and the anticipated completion of Lekki-Ikoyi bridge and Lekki-Epe road.

Yaba: Already properties are already changing hands in Yaba following the sale of some of the Federal Government landed properties in the area. More people are still buying old buildings in this area for redevelopment.

Buyers of these properties are already demolishing them for redevelopment. So, Yaba neighbourhood is expected to attract more property development this year.

Badagry: It is expected that with the ongoing reconstruction and expansion of Lagos-Badagry Expressway and the upcoming light rail project which is expected to commence operation by June, coupled with the Chinese Free Trade Zone in the area, Badagry axis will further open up and attract more people and property development investment around AgbaraTown.

Abuja: Akin Olawore, a Lagos based estate surveyor, pointed out that there have been a lot of movement to Abuja by corporate interests and that investors would take decision base on the fact that “wherever government is, there is money moving around there.”

He said a number of institutions’ investors have shown interest in Abuja and now a couple of malls have come up there. He expressed hope that more malls would be developed in Abuja this year while housing developments would come up too.

Port Harcourt: In Port Harcourt, Rives State, there is upgrade of coast line on going. Also the government in the state is carrying out urban renewal on the city. Also, a number of banks have moved to the state, while its economic tempo is increasing. There has been improved security in the state. Light rail project is also coming up in the state. Some developers are already showing interest to developed high and medium income housing units to widen its landscape. More property developments are expected along the Airport road, GRA, Aba and Eleme when the urban renewal project is completed.

Culled from :Here

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