THE IMPACT OF INFRASTRUCTURAL PROVISION ON PROPERTY VALUATION: A CASE STUDY OF ISHERI AREA, LAGOS / OGUN STATE, NIGERIA

The economic growth and development level of an environment depends on the availability of adequate infrastructure such as electricity, potable water supply and good transport network1. The benefits of having adequate infrastructure are enormous. Infrastructure availability enhances real property values. It also promotes the social and economic life of people in that environment2.

The focus of this article is to explain why infrastructural provision in an environment increases property values using Isheri North, Ojodu Berger, Ogun state as a case study. We will see how the current and on-going developmental projects on that area will make property values increase in an astronomical way soon.

About Isheri Area, Ogun / Lagos State

Isheri is a boundary spot between Lagos and Ogun state along Lagos-Ibadan expressway. The Isheri area is a mix of low, high and medium income residential neighborhood. Major developments within the area are residential properties, schools, shopping malls, and companies. The area also boasts of infrastructures like electricity, good transportation networks. The area currently has ongoing developmental projects such as: – expansion of the Lagos-Ibadan expressway, Lagos-Ibadan rail project (with a station close by to this area), the fourth mainland bridge and the construction of Mitros city.

These developmental projects that are underway is going to set the Isheri axis as hub of social and economic activities in few years to come, making this community a place to watch out for by discerning investors.

Property value is assumed to be influenced by the adequacy or otherwise of infrastructural provision to the housing estate units. The adequacy of the required infrastructures to housing estate units are domineering in defining whether the real property value would be appreciating or nominal.3 Based on the current and on-going infrastructural development in Isheri Area, it is safe to predict that real estate property values will increase astronomically in this area much more than the property values in nearby communities such as: – Ibafo, Mowe, Arepo and Magboro area; which are not well planned.

It is also safe to predict that property value within Magodo GRA and Omole Phase 1 – which are highbrow areas and at close proximity with Isheri will be at competitive values in a short time. This is because of the ongoing developmental projects and particularly the fact that the distance between these locations (driving time is currently less than 7 minutes) would close up soon as the federal government is already at advanced stage of its construction of the expansion of Lagos-Ibadan expressway.

Developmental Projects around Isheri Area of Lagos / Ogun State

Fourth-Mainland Bridge:

The construction of the fourth mainland bridge would still begin this year. The construction of the bridge is already accommodated in the state’s 2017 budget and about N844 billion has been earmarked for it. The Memorandum of Understanding for the bridge construction was signed by the Lagos state governor, Akinwunmi Ambode alongside a consortium of firms and funding partners in May 2015. During its conception, the government had to stop several times, when it realized that about 3,000 structures could be affected by the bridge’s right of way. A new alignment design concept was then produced to save about 2,200 houses from being destroyed. The project, when completed, will give birth to the longest of all the bridges connecting Lagos Island to the mainland. The bridge will pass through Lekki, Langbasa, And Baiyeku towns – on the lagoon estuaries – to Itamaga, in Ikorodu.4 The alignment of the bridge will pass through Itoikin road and the Ikorodu-Sagamu road to connect Isawo inward Lagos-Ibadan expressway at Ojodu Berger axis.5 The bridge will serve as a complement to the Eko, Carter and Third Mainland bridges and help to reduce traffic. It is expected to have a four-lane dual carriage way.

A model of the proposed fourth mainland bridge.

Mitros City

Mitros (MIssion To Re-build Ogun State) city comprises 2,000 hectares of land strategically located at the boundary between Lagos and Ogun state. Mitros city represents a unique and exciting development opportunity. The master plan provides a framework that incorporates a range of residential, commercial, industrial, hospitality and tourism accommodation together with supporting institutional and community facilities for up to 180,000 residents. The structure of the master plan has been prepared to encourage a multi-modal transport network to improve access and connectivity. The landscape strategy seeks to provide a variety of open spaces for leisure and recreation.6 The purpose of Mitros city is to create an exemplar development that will maximize the value of the site, establish a unique sense of place and provide contemporary homes, services and facilities.

The key components of new development at Mitros city include;

  • Central Business District (CBD)
  • Strip of commercial units addressing the Lagos to Ibadan expressway
  • Provision of industrial units along a section of the expressway.
  • Waterfront shopping mall with retail, commercial and hospitality facilities
  • Central boulevard connecting the CBD and the shopping complex
  • Golf course surrounded by a mix of leisure, hospitality, retail and exclusive residential accommodation.
  • Riverside park, incorporating leisure and recreational activities
  • Community facilities, including parks, educational, health, civil and religious accommodation.
  • Varied mix of residential accommodation including;
  • Multi-modal transport strategy
  • Structural landscape framework.7

Site plan of the MITROS (MIssion To Re-build Ogun State) City

Expansion of Lagos-Ibadan Expressway

Julius Berger Nigeria Plc, the contractor handling section one of the reconstruction of the Lagos/Ibadan expressway project, has concluded the installation of expansion joints on the popular ‘long bridge,’ on the Lagos-Ibadan expressway Section one of the project spans from Ojota in Lagos to the Sagamu interchange. Section Two of the project, which spans from the Sagamu interchange to Ibadan, is being handled by the Reynolds Construction Company (RCC).

Lagos-Ibadan New Rail Project

The Export-Import Bank of China has approved $1.275bn (about N408bn) loan for the Lagos-Ibadan rail project on behalf of the Chinese Government. The Nigerian Federal government has announced the release of N72bn as its counterpart fund. Nigeria is to bear 15% of the cost of the project while China will shoulder 85% for the first phase of fast-rail. The new Lagos-Ibadan rail would be built on the corridor of the existing narrow gauge Lagos-Kano rail line. It would accommodate only modern locomotives and other rolling stock meant for standard gauge rail for faster movement.8

The new rail line will link up with the LASG LAMATA Red Line at Alagbado via the Purple Line. The Purple Line is planned to run for 48km from the Lagos State University (LASU) to Redeem in Ogun State via Igando, Egbeda, Iyana Ipaja, Agege, Ogba, Berger and Mowe/Ibafo9

Conclusion

With the new infrastructural development going on around the Isheri axis, the valuation of properties has commenced an upward trajectory and any discerning investor is expected to plug into the waves at this period. From research done on what impacts the growth of property valuation along the Lekki axis within the last 2-3 decades, provision of basic infrastructures contributed significantly to it.

 References

  1. Ihuah, P. W. And Fortune, J. C. (2013). Toward a Framework for the Sustainable Management of Social (Public) Housing Estates in Nigeria. Journal of Us-China Public Administration, 10(9), 901-913.
  2. Ihuah, P. , Ekenta, Chukwuemeka & Nwokorie, Bartholomew (2014). Impacts of Inadequate Infrastructures Provision on Real Property Value: A Comparative Study of Agbama and Ehimiri Housing Estate, Umuahia, Nigeria. International Journal of Environment, Ecology, Family and Urban Studies
  3. Ihuah, P. W. And Fortune, J. C. (2013). Toward a Framework for the Sustainable Management of Social (Public) Housing Estates in Nigeria. Journal of Us-China Public Administration, 10(9), 901-913.
  4. “Construction Of Fourth Mainland Bridge To Start This Year” The Guardian, https://guardian.ng/news/construction-of-fourth-mainland-bridge-to-start-this-year/
  5. “Lagos Signs N844bn MoU on 4th Mainland Bridge” Vanguard, http://www.vanguardngr.com/2016/05/lagos-signs-n844bn-mou-4th-mainland-bridge/
  6. “Mitros City” Architect firms, http://archinect.com/place-make/project/mitros-city-ogun-state-nigeria
  7. “About Mitros City” Mitros City, http://makarioworks.com/mitroscity/index.php/about-mitros-city/
  8. ” China Exim Bank Approves N408bn For Lagos-Ibadan Rail Project” Punch, http://punchng.com/china-exim-bank-approves-n408bn-lagos-ibadan-rail-project/
  9. “Lagos Rail Mass Transit Purple Line Pre-Feasibility Study” FAO, http://faoconsulting.com/node/22

 

 

 

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