The Lagos-Calabar Coastal Highway is one of Nigeria’s most ambitious infrastructure projects, spanning over 700 kilometers to connect Lagos to Calabar. Designed to enhance connectivity and ease transportation, the highway is expected to significantly reshape real estate prospects.
While much of the attention has been on its impact within Lagos, the ripple effects will likely extend far beyond the state’s borders. This article explores how the completion of the highway could influence the real estate sector across Nigeria as a whole.
Read More: Lagos-Calabar Coastal Highway to be commissioned in May
Impacts of the Lagos-Calabar Coastal Road
1.) Boost in Land and Property Values
Real estate development thrives on accessibility and infrastructure. The coastal road will open new areas for development, increasing demand for residential, commercial, and industrial properties. As connectivity improves, land prices will appreciate significantly, especially in towns along the corridor, including Ogun, Ondo, Delta, Bayelsa, Rivers, Akwa Ibom, and Cross River.
For example, in Lagos State, towns such as Ibeju-Lekki’s neighboring communities stand to benefit from spillover development. Similarly, areas in Ondo and Delta will attract investors seeking cheaper land alternatives compared to Lagos while still enjoying improved access to the metropolis. This appreciation in land value will encourage both private and public investments, further stimulating the economy.
Historically, infrastructural projects have had a significant impact on property values. The expansion of roads, railways, and bridges has consistently led to an upsurge in real estate demand. This coastal road project will likely follow the same trend, bringing economic transformation to towns that were previously considered remote.
2.) Expansion of Economic and Industrial Hubs
The Lagos Free Trade Zone and Lekki Deep Seaport are already catalyzing real estate growth. With the coastal highway, industrialization will spread to new locations, leading to the rise of new economic hubs. This means more residential estates, commercial centers, and logistics hubs will spring up to support business operations along the highway.
States such as Bayelsa and Cross River, which have historically struggled with poor road connectivity, will see an influx of investors. Real estate developers will be keen to establish estates, hotels, and business parks in previously overlooked locations, driving economic diversification. Additionally, these areas will witness the expansion of ports and logistics hubs, further enhancing their appeal for business investments.
A well-developed transport network reduces operational costs for industries and encourages the establishment of manufacturing hubs along the corridor. Investors looking to set up factories and processing plants will find these new locations more attractive due to reduced transportation costs and ease of distribution.
3.) Increased Demand for Housing
With improved transportation, more people will consider living outside Lagos while working in the city, leading to a demand for housing in newly connected areas. Developers will respond by constructing modern housing estates, mixed-use developments, and affordable housing projects to cater to the growing population along the corridor.
In Akwa Ibom and Rivers, real estate opportunities will emerge for both low and high-income earners as new estates target professionals and expatriates who previously preferred Lagos due to its accessibility. Gated communities, serviced apartments, and high-rise residential buildings will emerge to accommodate the growing number of people moving into these areas.
Additionally, with the increased demand for housing, financial institutions will likely introduce more flexible mortgage options to facilitate property ownership along the coastal corridor. This will further drive real estate investments as more individuals will have access to financing for home purchases.
4,) Tourism and Hospitality Sector Growth
The coastal road will unlock the tourism potential of Nigeria’s coastal regions, boosting demand for short-let apartments, resorts, and beachfront properties. Investors in states like Ondo, Bayelsa, and Cross River will tap into this by developing luxury resorts, eco-tourism lodges, and entertainment hubs, further increasing real estate activity in these areas.
For instance, Cross River is known for its tourism appeal, especially with attractions like Obudu Mountain Resort. Improved connectivity will make it easier for visitors to explore these locations, leading to increased investment in hospitality infrastructure. Similarly, states with pristine beaches and unique cultural sites will witness a surge in tourism-driven real estate investments.
Furthermore, the hospitality sector will experience a boom as hotels, resorts, and short-term rental apartments increase to cater to tourists and business travelers. The short-let market will expand, offering lucrative returns for real estate investors.
5.) Commercial Real Estate Expansion
With improved transportation, businesses will find it more viable to expand beyond Lagos. Shopping malls, office spaces, and business districts will be developed in new cities, reducing congestion in Lagos while spreading economic activities to other states.
For instance, cities in Ondo and Delta will attract commercial real estate developers looking to build modern shopping complexes, office towers, and co-working spaces. This decentralization of business activities will not only decongest Lagos but also create employment opportunities and improve the standard of living in these states.
The growth of commercial real estate will also encourage international investors to explore Nigeria’s real estate market beyond Lagos. Global brands and multinational corporations will seek opportunities to set up offices, manufacturing plants, and distribution centers along the coastal corridor.
Challenges and Considerations
While the Lagos-Calabar Coastal Highway holds great promise, it also presents several challenges that must be carefully addressed to ensure long-term success.
- A key concern is land speculation and the displacement of local communities. These disruptions could have significant social consequences if not managed through strategic urban planning and proactive government intervention. Ensuring fair compensation and inclusive relocation policies will be critical in maintaining social harmony.
- Another pressing challenge is land acquisition, often accompanied by disputes over ownership and compensation. As property values rise along the proposed corridor, unresolved claims could lead to legal conflicts and delays in project execution. Establishing a transparent and well-regulated framework for land transactions is essential to mitigating these risks.
- Environmental sustainability is another important consideration. Increased construction activity and urbanization along the coastal route may lead to deforestation, erosion, and damage to marine ecosystems. To address these risks, developers and urban planners must adopt eco-friendly construction practices and integrate green building principles into the project design.
- Additionally, long-term infrastructure maintenance is crucial. While the highway is expected to improve regional connectivity, its economic benefits can only be sustained through regular upkeep. A comprehensive maintenance strategy, backed by adequate funding and institutional support, will be necessary to preserve the integrity and functionality of the road network.
Conclusion
The Lagos-Calabar Coastal Road is a game-changer that will redefine Nigeria’s real estate landscape beyond Lagos. As infrastructure drives economic activity, property values will rise, new urban centers will emerge, and demand for housing will increase across multiple states. Developers, investors, and policymakers must strategically position themselves to maximize the opportunities this transformative project presents.
The project has the potential to bridge the development gap between Lagos and other states, fostering regional economic balance. For real estate stakeholders, the time to explore investment opportunities along this corridor is now. Whether for residential, commercial, or tourism-related real estate, the coastal highway will create unprecedented opportunities that extend far beyond Lagos, shaping the future of Nigeria’s property market for years to come.
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