Major boost in property values for Marina, FESTAC, Yaba, Ikeja and other locations along the Lagos metro project

Citing measurable milestones, the Lagos State Governor, Babajide Sanwo- Olu, has stated in different fora, that by the first quarter of 2023, Lagosians will be able to ride trains from different destinations in the state to Marina using the Blue Line and Red Line.

Journeys along the Blue Line start from Okokomaiko (along the Lagos Badagry Expressway) to the Marina, Lagos Island along the Blue Rail Metro project. The first phase of the Red Line (Agbado-Iddo) will share the rail tracks with the Federal Government’s Lagos-Ibadan Railway Modernisation Project up to Ebute – Metta. The second phase is a dedicated track from Ebute – Metta to Marina. When operational, the metro lines will transport between 500,000 – 1millionpassengers daily and cut transport times from an estimated 3 hours to a mere 30 minutes.

The advantages of such a system are patently obvious – environmental, efficiency, productivity and the well-being of citizens but there are other economic benefits which are not as apparent. Studies have shown that having good rail links has a demonstrable effect on the real estate values on the locations with such efficient transport connections. In the box, we have shown two such cities that Nigerians are familiar with – Dubai and London, where new metro systems have directly impacted the locations which the stations are sited. The reason for this is simply that such locations become attractive as the cost of getting to other locations in the city becomes cheaper, more comfortable and convenient. So, this fuels demand for the location which in turn pushes up property prices and rents.

In the case of the Blue Line, Castles Lifestyle (our sister publication) is projecting a substantial impact in both the residential and commercial sectors of the real estate market. Festac Town with its relatively good layout and excellent title which is issued by the Federal Housing Authority, in particular, is likely to see increased demand and a lot of real estate development as the efficiencies of the rail system becomes apparent. Other locations will benefit as well but we see Festac Town as the major beneficiary. 

Commercial activity (and therefore real estate values) will be greatly increased in the markets of Alaba, International Trade Fair, Iganmu and Mile 2.

The Red Line will have the same effect. We see in particular, property values in Yaba and Ebute Metta going up significantly. First, the direct impact of the metro means that commuters from these locations can be on the Island in ten minutes and secondly, if the metro reduces traffic on the bridges leading to the Island, road travel times will also be very attractive to residents of those areas. Ikeja’s status as a commercial centre will be even more enhanced. It will make more and more economic sense to site offices and other commercial concerns in what is already the state capital.

The case of Marina deserves special consideration. If the office blocks of Marina and Broad Street are easily accessible from the Marina station, it is very plausible that these blocks become very attractive as offices and commercial spaces. Imagine taking off from Ikeja, landing in Marina in 30 minutes and being in your office in the next 5 -10 minutes. This will be utopia for many employees A location where over 500,000 passengers pour in daily will become a commercial hotspot. Those passengers are consumers and commercial, retail and relaxation sites will be created to accommodate their demand. We can see the location recovering some of its past glory when it was the corporate capital of Nigeria.

It’s time for real estate investors and developers to keep a close eye on the metro system and a closer eye on real estate values in the affected locations.