FG approves the Lekki-Epe International Airport. Here is what to expect along the Lekki-Epe Corridor

Last month was remarkable for Lagos State in many ways. Two key events that happened in the State were clearly notable, especially for the real estate industry in Lagos. On the one hand, October marked the delivery of the $1.5 billion Lekki Deep Sea Project. On the other hand, Lagos State also got delivery of the federal government’s instrument approving the construction of the Lekki-Epe International Airport project. The proposed five-million-annual-passenger airport will be built on 3,500 hectares of land in the Lekki-Epe area.

The construction of this project is slated to commence in 2023 and is expected to improve the state’s economy in many ways. An immediate impact will be that it will further open the state’s borders to global commerce, positioning Lagos to achieve its dream of becoming a megacity by 2030. Besides the many other direct economic impacts that this project will have on Lagos, it will significantly improve the property market in the state. To date, Lagos boasts of the most vibrant real estate markets in Nigeria, and a project of this magnitude will play a huge role in shaping the performance of the property market in Lagos. Specifically, here are five ways that the airport project will affect properties along the Lekki-Epe artery:

A surge in the capital appreciation of properties especially along the Lekki-Epe axis

Upon completion, one immediate impact that the airport project will have on the Lekki-Epe stretch will be a surge in property appreciation. Typically, infrastructure increases the economic opportunities within a locality, and this, in turn, increases the income of the residents. We can expect to see more high-earning jobs being created that will cause property values to increase. The biggest beneficiaries of the expected property growth will be Epe and Ibeju-Lekki.

Increased demand for short-stay apartments and hotels

The introduction of airports usually increases tourism and the influx of people around the region where the airport is located. With this in mind, we expect that among other things, the new airport project will open up the hospitality market along Ibeju-Lekki. Particularly, there will be increased demand for shortlets and hotels along the Lekki-Epe stretch and this will rub off generally across Lagos’ hospitality industry.

Reduced traffic along the Chevron to Ikoyi corridor

Another direct impact of the new airport is a reduction in traffic congestion along the Island part of Lagos. Congestion slows metropolitan growth, inhibits agglomeration economies, and shapes economic geographies. Lagos is one of the most traffic-prone states in Nigeria and across Africa. With the new airport project underway, most people living within the Ikoyi to Ajah stretch will likely use the new airport for both local and international travel due to its proximity. This will help reduce traffic congestion along the Ikoyi to Ajah corridor.

Faster development activity along the Lekki-Epe/Epe-Ijebu artery

On a national scale, Lagos boasts of the largest activity in Nigeria’s real estate sector. Across the State, the Epe-Ibeju Lekki corridor has seen phenomenal growth. Unlike the other parts of Lagos, The Epe/Ibeju Lekki axis has the largest expanse of undeveloped plots, and as such, most of the transactions seen within the region are largely land sales related.

Although a number of anchor projects are rapidly taking form in this region, including the Dangote Refinery, The Lekki Free Zone among others, most land owners and developers in the area are yet to build. We expect that the airport project which is currently underway will be a major development driver that will encourage most developers to start building in the short to medium term. 

Modifications in zoning and building regulations along the Ibeju-Lekki/ Epe corridor

Another key thing that we foresee is a change in land zoning and building regulations within Epe/Ibeju-Lekki. This will be in response to addressing challenges related to airport operations such as aircraft noise, safety and other environmental implications to land uses near airports. The concerned local governments must incorporate airport considerations into the local land use planning process.

The goals of compatible land use planning are to promote the relocation of land uses that are more compatible with airports, such as industrial and commercial uses, and to discourage the relocation of land uses that are generally viewed as incompatible with airports, such as residential, educational, and religious institutions. In the coming years, we expect to see some modification in land zoning and regulation within Ibeju-Lekki and Epe.

Do you know how the project will impact Lagos State? Let us know what changes you think the new airport project will bring to Lagos’s real estate landscape by emailing research@buyletlive.com.

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