Fourth mainland bridge and Lagos real estate market | The Guardian Nigeria News
Artistic impression of the planned 4th mainland bridge
Infrastructure plays a crucial role in a country’s development. Its role in real estate development cannot be overstated. Indeed, infrastructure is a huge contributor to demographic movement and population growth, and explains why some cities and economies are growing faster than others. In other words, infrastructure is an important factor in promoting real estate investment and development, and it will continue to be an important pillar in enabling people to be well governed by government.
When deciding where to invest in real estate, the quality of the infrastructure always comes first. Improving the quality of roads, bridges, pedestrian infrastructure and public transportation is a top priority for both federal and state governments in Nigeria. Unsurprisingly, the government is stepping up its road construction and rehabilitation efforts across the country, even partnering with the private sector for infrastructure development.
The infrastructure is not only an important factor for the development of real estate, its modernization also has high priority for future investments and at the same time offers opportunities for real estate investors to participate in the positive dynamics that follow such investment cycles.
An insight into the economies of the Asian countries, especially China, shows that the infrastructure development creates several opportunities for the real estate market and development. China boasts some of the largest infrastructure projects in the world like the high-speed rail system and the Three Gorges Dam hydroelectric plant, simply because the country has invested heavily in infrastructure for several years.
Other emerging Asian economies are following suit and are rapidly increasing their infrastructure investments with the aim of catching up with the more developed world and making their economies more competitive and efficient. These countries’ massive investments in infrastructure over the years have resulted in long-term benefits that translate into increased property development, productivity, improved jobs, income levels, and several other benefits.
As I said earlier, having good and efficient infrastructure is a major determinant of where real estate investments are going and what real estate investors focus on. And because real estate is a key driver of the economy, the efforts of governments are focused with the greatest intensity on energy supply, rail, road and bridge construction and renovation.
The construction of the 4th mainland bridge proposed by the government of the state of Lagos is fixed on the above perspectives. The planned 38 km long bridge, which after completion will connect the island of Lagos from Lekki, Langbasa, Baiyeku across the lagoon from Lagos to Itamaga in Ikorodu, is expected to cost 2.5 billion US dollars for traffic routes and, in particular, relieve the Third Mainland Bridge of theirs current traffic jams and congestion.
What would this project, which would allow direct and unhindered access from Ikorodu and its large suburb to the island and the area of the Lekki Free Trade Zone, mean for the real estate market in Lagos?
An important determinant of real estate value is the infrastructure, the presence of which leads to an increase in the value of the real estate. Real estate value is an essential aspect of real estate markets around the world and is determined and influenced by a number of factors, of which infrastructure is very important. Take Dubai as an example. The country regards infrastructure construction as the basis of economic and social development; Therefore, she attaches great importance to infrastructure construction. Since the 1970s, the United Arab Emirates government has invested heavily in infrastructure to create a favorable environment for local and foreign investment. Today, Dubai’s economy is the second largest in the United Arab Emirates, with real estate investments offering one of the highest return on investment for investors who prefer real estate. Undoubtedly, consistent investments in road, rail and other infrastructures over the years have made a major contribution to establishing Dubai as the most attractive investment destination, especially in the real estate sector.
It would not, therefore, be wrong to say that the construction of the Fourth Mainland Bridge would definitely ensure that businesses, including real estate development and transactions, are conducted more efficiently. Business is conducted more smoothly when communication and transportation problems are eliminated or significantly and significantly eliminated. In the improved business environment, people would live healthier and make a better contribution to society.
Just like building the third mainland bridge, Gbagada, Anthony, Ogudu and Ketu opened up to real estate development and improved rental rates, movement and relocation of people to Langbasa, Baiyeku towns, Itamaga, Ikorodu and their suburbs after the mainland bridge was completed would increase the population of the areas and this would result in an increase in demand for commercial and residential real estate, an increase in land development and land or land development. Residential property rental values would improve, land prices soaring along the axis, and property development along the corridor would appear as if property were being reinvented or redefined, all because property investors and developers are doing so would draw attention to the axis. Real estate investment would be effectively allocated for a long-term positive impact on GDP. If the state economy gets richer, house prices would rise and the state economy would stimulate.
In short, the Fourth Mainland Bridge would have a major impact on businesses and real estate, particularly on the Ibeju-Lekki / Ikorodu axis and on the whole of Lagos State in general. The construction should therefore have a broad impact on the real estate market and assets, an effect that would primarily be linked to the improvement of the transport infrastructure.
Akinyemi is a partner at Osas & Oseji, a real estate appraiser and appraiser.