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


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.


  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,
  5. “Lagos Signs N844bn MoU on 4th Mainland Bridge” Vanguard,
  6. “Mitros City” Architect firms,
  7. “About Mitros City” Mitros City,
  8. ” China Exim Bank Approves N408bn For Lagos-Ibadan Rail Project” Punch,
  9. “Lagos Rail Mass Transit Purple Line Pre-Feasibility Study” FAO,




Investment Opportunities in Real Estate During Recession

It is no longer news that the Nigerian economy has officially been declared to be in a recession. Due to the recession, the value of real estate has plunged to astonishing depths. However, because shelter is one of human’s basic need, no matter how much the economy fluctuates, there is always a demand for real estate. It is generally understood that several people who could easily afford real estate investments are no longer able to do so. The number of real estate properties for sale is far more than those with the willingness and the ability to buy. Buyers are unwilling to spend and sellers are unable to increase prices. It is now a buyer’s market. Smart investors especially Nigerians in Diaspora should actively participate in real estate at this time when the value of land assets is low which will not only reduce housing cost but will also give them good returns for their money in the long run.

It is more profitable to buy a house now rather than embark on building a new one. The cost of building materials have appreciated over the months the economic crunch have lasted hence calculating the cost in terms of finishing a building and the stress will be far more than what it will take you to just walk into a real estate firm and buy a house.

It is also profitable to invest in properties in locations that are home to major economic developments. An example of such location is Ibeju Lekki in Lagos state. This area is in close proximity to ongoing projects such as the Lekki Free Trade Zone and the new International Airport. Naturally, considering these are major economic projects, once completed, the number of people migrating to these areas would increase, resulting in a corresponding increase in value of properties. The wise investor should be looking to acquire properties now that they can be bought at fairly cheap prices, because they would definitely be sold at double the amount, if not more, in the foreseeable future. These areas also provide the best of commercial relevance because of its proximity to accessible roads and commercial enterprises.

There are so many reasons Nigerians in Diaspora should invest in real estate this period, some of them are under listed:

  • In recession, the power of negotiation is strongest

This period, sellers are willing to consider offers that they would not normally consider and agree to terms that they will not have agree to. There is also a chance of getting significant discounts. This offers an opportunity to buy properties with flexible payment terms and also provides you with the opportunity to pay amounts that will not disrupt your financial plans as well as avoiding the need to use high interest bank loans.

  • You get more value for your money

With the high exchange rate between naira and other foreign currencies, converting pounds or dollars, for example to naira equivalent will yield a higher naira value. It therefore makes good sense to buy properties in Nigeria now. The recession will only last a while and thereafter the market will pick up and restoring lost value.

“It is therefore important to strategically position yourself and recognize that this is the best time to invest”


  • Technology has made investing significantly easier

You don’t have to be physically present in Nigeria to invest in real estate property. You can link up with credible real estate developers or agents online. Advertising units is as simple as posting on a property website or blogs. Cleaning services can be ordered online. Tenants can pay rent online or via banks. Your agent can set you up with automated email alerts for new listings. You can take virtual tours of neighborhoods. Today, a real estate investor barely needs to leave the comfort of home to manage a portfolio of rental properties, thanks to technology.

  • Credible Real Estate Developers

There are a number of credible and authentic real estate developers and agents in Nigeria that you can work with. You are however advised to due diligence before settling for one. When you are ready to invest in a property, the first thing is to hire a reliable lawyer to oversee the property documentation and verification. The lawyer would do the verification to ascertain the legitimacy and authenticity of the real estate agency. There are a lot of required documents to be ascertained and verified prior to payment. Hiring a lawyer could be an added cost but at the end it serves the purpose. Also, a real  estate agent that is authentic must be able to provide the buyer with buyer/seller agreement before the transaction. This is an official agreement between the agent and the buyer/seller. He must tell the commission and other necessary information about the transaction must be outlined and agreed together by the parties involved prior to payment and concluding any transaction. You should pay only to the company’s official bank account. The company must be registered by CAC, have an active website and they should operate from a standard office.

  • Knowledge is free

The internet has democratized learning in a way that makes real estate investing education completely free. There are thousands of blog posts, e-books, podcasts, websites, forums and more sources that help real estate investors connect. Today, the best job security is enjoyed by those who take an active interest in gaining skills and knowledge that can be used elsewhere. Real estate investing is one of the greatest ways to gain financial independence so your job can become optional rather than required.

Below are some real estate investment options that should be considered this period:

  1. Cash payment

This is the simplest and easiest method of buying properties. There is no need for extra paper work and security that you will need to comply with if you are sourcing the funds from a third party. There are no monthly payments and thus, less sleepless nights if you have a drop in your cash flow or lose your job if you are an employee. However, if you do not have the bulk cash that you need to buy a property, there is are other options.

  1. Payment in Installments

Several real estate companies have payment in Installments option in place to encourage real estate investors. This innovation is making buying a property easier for first time buyers in particular. All you need is to find the right scheme that fits your budget on monthly or quarterly basis, do your due diligence and go for it.

  1. Mortgage payment at single digit interest rate per annum over a period of 10 years

The Minister for Power, Babatunde Fashola, during this years’ annual conference of the African Union for Housing Finance called for real estate developers to accept mortgage payments for real estate property at single digit interest rate per annum over a period of 10 years.

Real estate experts and most developers have given their backings to this call by the Nigerian government. Rock-bottom mortgage rates — and low home prices — can open the door for you to buy more house for your money in less time. The advantage of a 10 – year mortgage is that you will be able to pay off the debt and build equity faster than you would with a longer-term mortgage.

  1. Form a Cooperative

Another easy way of buying a property is to team up with other people who are interested in acquiring properties but do not have enough money set aside for the purpose. This is the philosophy behind cooperatives. With small monthly payments, you can become part of a big estate project and benefit from the values that coming together creates. One of the benefits is that when you buy land in acres and hectares, it gives you greater negotiating powers with the seller. It is possible for you to negotiate and be given bigger discounts that may not be available to an individual buyer.

  1. Buying properties off plan

This is another way to come on board a property investment train. Developers are often pressed for money at the inception of their project. Some have to borrow from financial institutions at very high interest rates before they can commence their project. Thus, it is in their interest to have investors even before they put the first block on the ground. Such an expression of interest in the project that is backed with cash deposit considerably reduces the financial burden on the project. Also quite naturally, it draws several other people to the project. Many developers have several options and concessions available to early investors.

  1. Trade your present property for the one you desire

If you are already investing in real estate you can scale up by trading your present property for the one you desire. It is very possible to convince a seller to accept your property in exchange for the one you desire and you can then pay money for the difference. You should not allow limited finances to hinder your property investment dream.

This is not to say that investment in just any piece of real estate is going to make sense. You still need to understand what you are doing. You still need to critically analyze your investment decision. You still need to hustle to find the 1-in-100 deals that actually makes sense. But by all means invest in real estate now because

“Ten years from now you’ll wish you had started today”

Investing takes time. I’m not promising you that tomorrow you’ll be rich if you start investing in real estate today. But I am telling you that in ten years you will likely look back at 2016 and say, “Why didn’t I start back then?”

“ We are now at a unique point in history where real estate investing just makes sense. Wait too long and you’ll miss out.”

There are other creative financial strategies that you could come up with if you put your mind to it. Real estate is also not just about buying and selling land and houses. It is also about renovation, reconstruction and property development. These opportunities now abound in the market. This is the perfect time to seek those opportunities and preferably sign agreements with the various stakeholders for its implementation.



written by Deji Abisola

Worldwide, developing countries have experienced rapid growth in urban population as a result of sustained rural to urban drift, especially among the youth. This development is highlighted in Nigeria, as Africa’s most populous nation, with the tremendous expansion of metropolitan areas the country has witnessed over the decades to accommodate this global trend. Municipalities like Lagos, Kano, Benin City, Enugu and Port Harcourt have simply swallowed up outlying areas to become greater metropolitan areas – a continuing, seemingly irreversible, phenomenon.

In 1974, rural population in Nigeria was estimated at 75% of total population, but by 2001, urban population had reached 44% of the country’s population. This rapid urban growth portends serious implications for the environment and the wellbeing of the citizenry. Therefore, the situation demands a critical investigation of the state of affairs of the country and its dwellers (Okuneye et. al, 2015).

According to a report by the South African website, the Nigerian real estate sector was valued at $40.66 billion in 2014. The report further states that the real estate sector is the fifth largest non-oil and gas sector in the economy, accounting for 7.78 per cent of the country’s GDP of $522.64 billion. Between 2015 and 2016, the three cities of Lagos, Abuja and Port Harcourt was expected to erect at least 10 skyscrapers valued at over N500 billion ($1 = N400). The report indicated that Lagos is the fastest growing city in terms of real estate value in emerging markets worldwide (Real Estate: Building the future, 2015). » Read more