Market booms in reserved areas as rents, prices rise 25% in 12 months

The growing desire by the elite to own homes in choice locations in Lagos such as Government Residential Areas (GRAs) coupled with a high demand for retail and office spaces in an otherwise residential area have raised property prices in such neighbourhoods by about 25 percent in the last 12 months.

Ikeja GRA is one such government reserved area designed and developed as a residential area by the Lagos State government. The GRA, which is bordered in the north by Mobolaji Bank Anthony Way, in the south and west by Agege Motor Road, and in the east by Ikeja Military Cantonment, is currently overstretched with high demand for both residential and commercial properties.

BusinessDay investigations reveal a significant price movement in that market with higher demand for office space and residential properties which has raised the prices of the few available ones.

“There has been a visible increment in property prices on the axis as the demand for office space grows. For example, at the beginning of the year, office space at the central business district such as Isaac John Street was rented for between N15,000 and N18,000 per square metre, but currently prices range between N30,000 and N35,000 square metre on the same properties,” a  property vendor on the axis told BusinessDay.

“The rise in price is also visible in the residential end of the market, as prices have soared significantly,” Ayo Olamiju, an estate surveyor and valuer, confirmed to our reporter. At the beginning of this year, a three-bedroom serviced flat rented for N3.5 million per annum, but currently the same property rents for N4.5 million for the same period. A serviced five-bedroom terrace rented for between N5 million and N5.5 million per annum 12 months ago now goes for between N6 million and N6.5 million.

Olamiju further revealed that property prices have also gone up as a well-finished five-bedroom duplex which sold for about N150 million at the beginning of the year currently goes for N180 million.

“There has been a visible rise in the number of condominiums in the neighbourhood recently; this has equally been driven by demand; we have also seen developers exploit areas reserved for some attraction such as green areas in the axis now hosting structures,” noted Kehinde Ademakinwa, lead partner, A. Ademakinwa & Co., a real estate firm, adding that the huge demand has become quite visible because of the limited space available for developers to exploit.

Another source confirmed to BusinessDay that “demand for long lease of office space is also on the increase”, adding that most homeowners are pressured to either lease out their houses for office use or sell to buyers.

Branded the mainland’s most priced area, the axis has also succeeded in attracting property buyers from the Lekki-Epe axis due to some major attractions such as proximity to the airport, state secretariat, serene neighbourhood, shopping malls, banks, hotels, recreational spots, amongst others.

By: ODINAKA MBONU