Banana Island: Exclusive location where value appreciation approximate 50% in 12 months
Every society has its exclusive locations where those who are, socially and economically, out of the ordinary nestle their homes generally defined by sophistication, taste, class and luxury living.
Nigeria has a fair share of such locations nurtured and sustained by its fast-paced urbanization, an exclusive class of the nuveau-riche and a growing clan of the middle class whose access to cash, uncommon sophistication and penchant for Western lifestyle have redefined their taste and choices.
Talking about locations like this, Banana Island readily comes to mind and, arguably, it is the most expensive real estate address in Nigeria today with its rich and complex architecture of luxury homes coupled with mind-boggling land and house prices.
This curved island that has the shape of a real banana is presently the most expensive location in Lagos where land value has gone up by about 50 percent to N370 million for 1,000 square metres of land, up from N260 million for the same size of land early 2014. This is also an island where a three-bedroom apartment typically sells for well over N100 million while a five-bedroom house sells for over N450 million.
Perhaps, the reason for this high value rise is not far-fetched, because this is an island that has become a brand of sorts, harbouring anybody who is somebody in society, especially high net-worth and corporate individuals and institutions in this country.
“The island is over 50 percent developed; if you are driving in, it looks undeveloped but that is not the case”, Chudi Ubosi, an estate surveyor and valuer, notes, explaining that “what drives the value of the island is that it is the best maintained estate in Nigeria”.
Continuing, Ubosi who is the chairman of the Banana Island Residents Association and Africa President of International Real Estate Federation (FIABCI), said “the island has the best security, best facilities and best services, and has become a brand on its own. Everybody who can afford it wants to live on the island. Nobody is thinking of old Ikoyi anymore; people are ready to pay extra to live in this island”.
According to him, though it seems as if there is much land on the island for sale, much of the land there is no longer on the market such that what is left is very small and commands high prices which will continue to go up.
“Prices have gone up there by over 50 percent because 1,000 square metres of land that sold for N260 million early 2014 now goes for N370 million. It will continue to be so because as the available land reduces, and the island continues to be a coveted and sought after address, prices will continue to go up. The infrastructure and services here are second to none”, he said.
Analysts advise that now is the time for prospective investors and home seekers wishing to have presence on this exclusive and coveted location to move cash to the market.
Over the years, they say, real estate investment has proved to be one of the most profitable investments globally and, according to a forecast by Wealth-X, a wealth intelligence firm, the number of high net-worth individuals, that is, people with more than $30 million in investable assets, will rise by 95,000 over the next decade, meaning that, every year, there will be more people who want and can afford luxury properties.
“Like in several real estate markets of the world where economic growth is shooting up or, at least, stable, demand for luxury real estate is rising in Nigeria and so also are prices”, the analysts have noted.
CHUKA UROKO