…Renters, businesses flock axis for growing opportunities
House rents along Lagos-Badagry Expressway have surged in the last one year as construction work on the second phase of the Lagos Blue Rail Line progresses in a manner that gives hope of its early completion.
So far, construction work has gone beyond Alakija and it is on its way to Okokomaiko where it is designed to terminate. Earth work and rail stations have reached advanced stages, setting the stage for laying of the rail tracks.
The first phase of the rail line, which covers 13 kilometres with five stations including Marina, National Theatre Iganmu, Orile, Alaba and Mile 2, became operational in September 2023, according to Lagos Metropolitan Area Transport Authority (LAMATA).
House rents within the stretch of the second phase, covering all the areas from Mile 2 to Okokomaiko, have gone up by between 50 percent and 100 percent in one year, depending on the types, sizes and ages of the houses which include residential and commercial properties.
Landlords on this axis, who are pushing up rents, are responding to increased demand from renters and buyers.
Rents for two-bedroom apartments have jumped from N700,000 to N1.2 million for old tenants and up to N1.5 million for new tenants in some areas. Some landlords have even raised the rents for two-bedroom apartments from N500,000 to N1.2 million, representing 140 percent increase. Rents for one-bedroom and three-bedroom apartments have also increased in the same direction.
“My rent will be due next year but my landlord has already notified us of an increase in our rent from N700,000 per annum for our two-bedroom apartment to N1.2 million, which is about 71 percent increase.
“That is because we are old tenants. For new tenants, the landlord is now accepting only N1.5 million for the same size apartment and same period of time, which is over 100 percent increase, and it is not as if there is any value added to the houses by way of renovation or new facilities,” Christiana Okonkwo, who lives at Abule Ado but works on Lagos Island, told our reporter.
Okonkwo noted that since receiving the notice of rent increase from the landlord, she has been looking for cheaper alternatives within the same location to no avail.
Further down along the expressway, the story is not any different. At a place called Agric, near the Ojo Military Cantonment where Toyin Iluyomade, a trader at the popular ASPAMDA market at Trade Fair, lives, the rent for a three-bedroom bungalow has moved from N500,000 and N650,000 per annum to between N700,000 and N850,000 in one year, depending on the age of the houses.
Iluyomade told BusinessDay that when she first settled in that location in 2022, her rent was N350,000 per annum, attributing the high rent increase to the completion of the expressway, the operation of the Bus Rapid Transit up to Okokomaiko, and the expectation of the rail transport up to that point too.
At one of the estates along the Expressway, located precisely at Ketu, just a few kilometres away from Agbara, the border town between Lagos and Ogun State, the increase in house rent has been dramatic.
When the three-bedroom bungalows at the estate entered the market, they were sold for N7.5 million per unit, according to the developer who did not want to disclose his name. As at today, each unit of those houses sells for N20 million and above.
Ned Ezike, an online domain developer and programmer who lives in the estate, confirmed to our reporter that the increase in the rent and sales price of units in the estate is beyond comprehension, explaining that, as a tenant, he entered the estate at N500,000 per annum.
“Today, the story has changed to a point where my landlord has told me that my rent, which is due for renewal by March 2025, is now N1.2 million. Because I told him I won’t be able to pay what he is demanding, he has sold the house for N28 million. I am still there to live out my rent,” he said.
Commenting on the rent increases, Okey Ibeabuchi, an estate agent, noted that what is happening is a testament to the power of infrastructure in changing the value of properties in any given area.
“People are only taking positions because of the improved infrastructure in this area. To have road and rail transportation connecting this area to the city centre is a major attraction and not many people can resist that opportunity,” Ibeabuchi said.
Meanwhile, the Lagos State government is working on the second phase of the rail line which starts from Mile 2 and ends at Okokomaiko. This push is not unconnected with the success and high-level patronage which the first phase has recorded in its 11 months of operation, close watchers say.
Osa Konyeha, technical adviser, Corporate Investment Planning of LAMATA, was quoted as saying that the rail line recorded 500,000 passenger-traffic within the first five months of operations, which was initially its annual projection.
The Lagos Blue Line is an electric rapid transit line which is part of the Lagos Rail Mass Transit system run by LAMATA. The first phase with five stations and 13 kilometres of track opened on September 4, 2023. The full line is set to be 27 kilometres and is expected to carry 500,000 passengers a day.
The Blue Line has a long history dating back to April 2008 when the state government approved the construction of the Okokomaiko-Iddo-Marina Line, with projected completion date of 2011. However, the project suffered many delays due to lack of funds.
The opening date was revised to June 2013, then December 2016, then 2017. As of November 2016, only 16 kilometres of the 27-kilometre Blue Line had been completed. It began full operation on September 4, 2023. (The Cable)
