In our last week’s article titled “Where is Lagos’ next Lekki Phase 1”?, we analysed the factors that drove real estate growth in Lekki Phase 1 and dug deeper to identify emerging locations within Lagos that we can expect to see a similar growth story play out in the future. In this article, we will be discussing further to help you understand the emerging locations, and position for the opportunity ahead.
Over the next 5 years, Epe will host or at least reap directly from most of Lagos’ newest infrastructure projects.
Even though a number of the large public infrastructure projects that will be sitting in Epe have not started, those sponsored by the private sector along the Lekki-Epe corridor are either completed or at least nearing completion. Over the next five years, we expect to see more projects breaking ground along that stretch, and this will significantly improve the economic impetus of the region. Some of the projects that are planned to sit in, or close to Epe, that will be reaching completion over the next two years include;
- The ongoing rehabilitation of the Lekki-Epe Expressway that connects Lekki Phase 1 to Epe.
- The ongoing construction of the Lekki Regional Road will connect Freedom Way in Lekki Phase 1 to Victoria Garden City.
- The proposed Lekki Deep Sea Port will be located within the Lekki Free Zone, a few minutes from Epe.
- The Completion of the 2,000 hectares Alaro City mixed-use project that is also located within the Lekki Free Zone.
- The completion of the Dangote Petroleum Refinery, which is expected to produce up to 650,000 barrels per day (BPD) and is reputed as Africa’s biggest oil refinery.
With over 170,000 jobs to be created, Epe is positioned to be the largest residential beneficiary
The completion of the Lekki Regional Road, alongside the rehabilitation work that is ongoing along the Lekki-Epe Expressway, will ease transportation along the Lekki-Epe corridor. As of today, Alaro City has over 45 businesses already operating within the mixed-use zone. A few weeks ago, Alaro announced a new tenant, Talent City who will be building a Technology Ecosystem similar to Silicon Valley within the mixed-use zone. Our analysts project over 250,000 jobs to come from these projects over the next few years. To give some context, The Deep Sea Port and Dangote refinery will employ about 170,000 and 57,000 people respectively once completed.
Although most of these projects are planned to be located within Ibeju-Lekki, the residential demand will flow closer to Epe. The reason is that pollution and other associated hazards that will result from the industrial activities around the Ibeju-Lekki area will discourage employees from residing close to the industrial area. As a result, Those who will be working in Ibeju-Lekki would prefer to stay in Epe, which is more residential focused but still has the needed proximity advantage.
Investors who are tapping into the current low price window in Epe are positioned to reap returns similar to Lekki Phase 1 over the next few decades.
As of today, the real estate market in Epe is just beginning to gain traction. Pricing, in general, is still relatively cheap compared to neighbouring locations and demand is still within the residential asset class. Outside a handful of projects like Isimi Lagos and Alaro City where prices are significantly higher due to the presence of infrastructure, land in Epe on average still sells between ₦1,000/sqm and ₦15,000/sqm depending on proximity to town. We expect that the completion of the aforementioned infrastructure projects in Epe will drive real estate activities and pricing. Investors who are able to tap into the current low price window will begin to reap the reward over the next few decades. In our next article, we will be discussing other locations including Yaba and Ikorodu, alongside actionable tips to help first-time buyers navigate the market.
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