Property Investment prospects along the Lagos-Ibadan Expressway
In 2011, Cressfield, one of the subsidiaries of SSA Realties Limited began selling of plots at the Organic Nest Estate located opposite New Makun City, 2 minutes’ drive from RCCG Redemption Camp at N400, 000 per plot. Today however, the same plots are going for N2.5million.
On the Siwama area (see map), plots were sold for as low as N250, 000 in the same 2011. Today, it is between N3.5million and N4million in established estates. The pattern is similar in all the locations along the expressway.
As noted earlier, this is driven by proximity to Lagos and growing commercial interest. At the last count, the expressway houses over 12 companies, including Punch Place, Opal Logistics, Nestle PLC, Manal Nigeria Limited, Tata Motors, Coleman Wires and Cables, Buildwell Plant, Takol Limited and many others. It boasts of at least three universities: Mountain Top University, Christopher University and Redeemer University and houses religious structures like Redemption Camp, MFM Prayer City, Nasfat Islamic Centre as well as numerous residential estates. It is a kind of live-work-pray location with much potential for growth.
Map of Estates along lagos/Ibadan Expressway
Owners of estate say prices of properties should have increased much more if not for two basic reasons: the growing economic challenges in the country, and the poor state of the expressway.
Concerning the expressway nonetheless, there is a renewed hope. The present Federal Government led by Muhammadu Buhari budgeted N50billion for its completion. Contractors have returned to work, unlike before, there is now an APC government in Lagos and Abuja, and former Lagos governor, Mr. Babatunde Fashola who knows the importance of road, is at the helm at the Ministry of Works.
The expansion will ease traffic, reducing the amount of time it takes to get to Lagos drastically, a situation projected to boost the real estate market on this axis. Thus, investing is advisable.
For the potential investor however, there is a need to understand the area, its various spots and their investment potential. This, we shall highlight presently and do a more detailed report subsequently.
The area of coverage for this purpose is the stretch from Berger Bus Stop to the Shagamu Interchange. For our analysis, we shall divide the location into Isheri North, the Expressway itself, Simawa and Ofada-Papananto Road axes.
The Isheri North Axis: This axis is just off the expressway, it is most expensive and the closest location to Lagos State, about 2 minutes’ drive from Berger Bus Stop. It is assessed mostly from Opic Bus Stop and houses notable estates like Riverview, MTR, Skygate and Isheri Palms. Business interests here include Hallmark Newspaper, Turkish International College, Adeke Industrial Avenue and other upcoming industries.
The Expressway Axis: Located along the expressway are towns such as Arepo, Magboro, Ibafo and Mowe. It is already a populated location and houses most of the business, religious and educational interests enumerated above. It is next to Isheri North in terms of price of real estate. Arepo is about 5 minutes’ drive from Berger Bus Stop.
Simawa Axis: Simawa is located behind Redemption Camp, about 15 minutes off the expressway to the right. It is an area that is opening up mostly due to the activities of the RCCG. There are also shopping malls, hotels and other business interests coming up in the area.
Ofada-Papalanto Road Axis: This axis is located about 18 minutes’ drive off the expressway from Mowe. It houses Nestle PLC as well numerous residential estates.
Next week, we will look at pricing of real estate in each location as well their unique investment potential.