Lekki Flooding Review: Some potential investors have expressed concerns about investing in Ibeju Lekki because of the widely publicised flooding in Victoria Island, Lekki Phase 1 & 2 and some sections of the Lekki Epe expressway that occurred during the raining season.
Those are valid concerns.
However, as an investor, you must rise beyond the media publicity stunt and consider the investment potential of the region as part of the criteria to decide whether to invest or not to invest.
Let's consider two things you could include in your assessment of the investment potential of the area.
As an investor, one of the things you should consider is the impart of the circumstances prevailing in a neighbourhood on property price movements.
So, how has the annual Lekki flooding affected property prices?
Simple answer: No significant impact.
For example, 900sqm plot of land in Lekki phase 1 was about 10 million Naira sometime in 2006. Today, some 11years after, the same plot of land is between 100 - 170 million Naira depending on the exact street where the land is located.
That is about 32 percent increase in value year on year . . . despite the fact that the area experience some kind of flooding every year.
The above describes the Lekki Phase 1 axis, where prices are driven by nearness to expensive neighbourhoods like Victoria Island and Ikoyi.
Prices in Ibeju Lekki axis of Lagos state Nigeria will largely be driven by the new commercial city called the Lekki Free Trade Zone (LFTZ, for short).
The LFTZ will be home to major local and international companies as well as the new Lagos Deep Sea Port and the new Lagos airport.
One major investment that is expected to positively affect the growth potential of properties in that region is the Dangote Refinery And Petrochemical Plant, which is also part of the LFTZ.
The project is estimated to cost about $14 billion USD (about 4.9 trillion Naira). And it is estimated to have a capacity of 650,000 BPSD . . . making it the largest refinery in Africa.
Now stop and think.
Will the richest man in Africa be building Africa's largest refinery in a location where the risk assessment indicates will be completely overtaken by floods in the near future?
Most likely he wouldn't be investing heavily in Ibeju Lekki if it was certain that he would lose his investment to flooding.
The Ibeju Lekki axis where Africa's largest crude oil refinery will become operational in 2019 is the investor's dream.
The prices are still low. And they are sure to skyrocket when the Dangote Refinery and petrochemical plant (as well as the entire Lekki free trade zone and the Lekki Deep Sea Port) becomes operational.
When you think of Ibeju Lekki region, THINK APAPA.
Yes, prices of properties in Apapa Lagos are off the chart.
The same is likely to happen when a new port becomes operational in Ibeju Lekki + the Dangote Refinery + the entire Lekki Free Trade Zone.
Are you an investor who would like to double or triple the return on his investment?
This is the time to invest in Ibeju Lekki to achieve that goal.
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