Eko Atlantic City ahead on land price increase in Q3’16 as naira loses value

Emerging Eko Atlantic City in Lagos State has taken position as the most expensive land in Lagos, with an average price of $1,700, an equivalent of N520,000 per square metre, a Q3’ 2016 report on Lagos real estate investment has shown.

The rise in the city’s land prices from $1,250 per square metre earlier in the year to the current price has been attributed to the fact that its prices are quoted in dollars and have therefore continued to rise in naira terms, as the naira continues to lose value against the dollar.

Following the devaluation of the naira by the Central Bank of Nigeria, and the floating exchange rate regime, naira today exchanges officially at N305/$ and N460/$ at the parallel market, creating a big gulf in the market between people who have access to dollar and those who don’t.

This has therefore created investment opportunity in the property market for those who have access to the hard currencies, especially dollar and pounds.

Eko Atlantic is a $6 billion city development rising on the ashes of what used to be the Lagos Bar Beach on the shoreline of the Atlantic Ocean, and will be sitting on 10 million square metres of land to be reclaimed from the ocean. It is an exclusive destination for residence and commerce.

By its current price, land on the city is now far removed from the reach of local buyers and, according to Munachi Okoye, CEO, MCO Real Estate Limited, “land prices in this city are now affordable in the local market primarily to corporates that generate revenues from dollar denominated sales such as oil companies and commodity exporters.”

The report, which was compiled by MCO Real Estate, also shows that Banana Island at N400,000 ($1,326) per square metre and Victoria Island at N418,000  ($1,377) per square metre continue to vie for the second position as the most expensive prime Lagos locations, with Banana Island now well entrenched as the prime residential address, while Victoria Island retains its title as the Lagos Commercial Business District.

Within the period under review, land prices in Lekki and Oniru were N196,000 ($644) and N158,000 ($518) per square metre respectively. The two locations have continued to track each other with Lekki benefiting from the growth of Admiralty Way as a growing commercial thoroughfare while Oniru benefit from its proximity to Victoria Island and its subsequent growth as a secondary commercial office destination.

Eko Atlantic City is, increasingly, becoming a compelling investment destination for foreign and institutional investors. Frequently, the city plays host to foreign business/trade delegations and other high profile visitors. The most recent of such visitors was a business delegation from the United Kingdom who was obviously fascinated by the vision, scale and layout of the development.

Pierre Edde, development director at South Energyx Nigeria Limited, developers of the city, explained to the visitors that the city’s Business District was a strategic and prestigious location for offices, with a state-of-the-art 24/7 infrastructure network, including 21st century communications, smooth transport system and uninterrupted electricity, making it a compelling place to work.

He said that that the District was designed to play host to a multitude of headquarters for companies within Nigeria, adding that upon completion, Eko Atlantic would be home to 500,000 residents with an expected commuter volume that will exceed 300,000 people.

Akin Thomas, CEO, AKD Solutions Limited, described the city as an amazing project, and commended the developers for their passion and commitment to Nigeria’s economic development.