Thursday, May 23, 2013

RAPID URBANIZATION IN LEKKI


During the week I have a series of meetings with a client who lives abroad, but has been developing heavily in Lagos with a partner who is based here. They are concerned about the downward turn in the property market and want to reassess their options for selling at quite a high asking price. I advice that they should consider lowering prices to attract a wider market and be prepared to wait a little longer for the property to be let or sold. Of course with the proliferation of Estate Agents who are desperate for a sale or lease and in a market where fewer properties are becoming available, it will determine who the most tenacious are. On the positive side It will hopefully leave only the really serious property experts to take charge of the market.

I had to carry out some land viewings in Epe over the weekend. Development is moving much further away towards Epe, and looks promising with the proposed opening of the Lekki Expressway corridor. New estates are springing up everywhere. The traffic congestion on the Lekki Expressway road especially from Chevron to Sangotedo and back in the opposite direction is horrific to witness in the mornings and evening. LCC must do something about this misery to road users. Toll gate charges are collected from users who are not receiving any real benefits from using the road. Meetings have to be planned and set out for hours in advance. The works to the roads were projected to have been completed ages ago, but no updated information is being given. The roundabouts cause chaos, accidents and gridlock daily. I am not sure how this already overstretched road will cope with the future projection of millions more residents who will move into the new estates springing up.

I am invited to Ogun state to view another development coming up, which is aiming to target the high end market. I feel this may be better targeted at the medium income investors and workers who will want somewhere decent to stay and who work in the locality. The chances of this group of investors buying and renting there, is much higher than the target group the investors are looking at who are high income earners, and will not want to spend the kind on money being asked for, to live in that area.  I will give it a shot at marketing in Lagos, but have advised the developers what to expect. I leave Abeokuta at 5pm, and am still in Otta at 7pm. I got to Lagos at 10pm!

I really need to get myself a driver instead of borrowing friend’s drivers, but am still wary about their trustworthiness.  With the increase in kidnapping incidents we must be extra wary. I am therefore more comfortable driving myself most times even though it is getting more and more stressful.

I have lunch with a good client who is refurbishing a block of flats in Ikoyi and wants to know what the market rate is for flats in the area. He of course pays for lunch. The best way to get an idea of this is to check the already going rate for similar properties in the area. This can be difficult atimes as some landlords ask for ridiculously high amounts based on what they feel they have put into the property. I ring around for contractor’s quotes for the management of the facilities. I get quotes with such wide variances, the most expensive at N3mill more than the lowest quote even though they are quoting for exactly the same things.  It is a hard to know what to think!

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