Regardless of the rising demand for luxurious properties in Nigerian cities, consumers stay undeterred and proceed to pay a premium for waterside properties. Luxurious waterfront properties in Lagos command a number of the highest premiums for the views and site in comparison with the remainder of the cities within the nation.
All over the world, waterfront properties have remained excessive in demand and command a premium in comparison with inflation and non-property investments. Within the 12 months to June 2022, the common value enhance for a waterfront property within the index was 10.9 per cent.
The pandemic and successive lockdowns have put greenery and area on the prime of consumers’ necessities for properties, fuelling gross sales and value progress in prime regional markets. Low provide has additionally stored upwards strain on costs.
Lockdowns and COVID-19 did nothing to discourage potential consumers, with 42 per cent of respondents to Knight Frank’s World Patrons Survey stating they had been extra doubtless to purchase a waterfront property as a consequence of the pandemic.
The common worldwide premium for a waterfront property in comparison with a non-waterfront house was 40 per cent in Q2 2022. Senior analysis analyst at Knight Frank, Chris Druce, stated globally the pandemic has led to a basic reassessment of housing and life-style necessities.
“For a lot of, being close to the water with more room and greenery has been a major driver, and with provide restricted in all markets this has supported value progress and premiums,” he stated.
Beachfront property was probably the most sought-after location, with waterfront property attracting a mean premium of 63 per cent. This narrowly pipped a harbour location (62 per cent), with coastal, the place waterfront consumers pay a mean premium of 40 per cent, third.
The Guardian investigation revealed that because of excessive demand and proximity to seashores and resorts, the rental revenue positioned on waterfront properties in Lagos and different metropolis centres is larger than non-waterfront properties.
The distinctive options of waterfront property had attracted big funding in Lagos, Rivers and different states, with a plot of land as excessive as N1.2 billion, N100 million, N90 million and N200 million respectively.
Lagos, specifically, boasts of selection places reminiscent of Banana Island, Osborne Foreshore Property in Ikoyi, Lagoon entrance property in Epe, Avalon foreshore, Westwood Lakes in Sangotedo, Jewel Gardens in Eleko, Vopnu metropolis ocean view Abijo, Atlantic view backyard, ilashe personal seashore resort and others.
Presently, the waterfronts don’t command excessive worth as they need to be, however premium plots in such places have excessive worth. Findings revealed that one hardly sees any waterfront properties coming into the market besides, when it’s developed right into a leisure centre, the place individuals can come for rest and commune with nature.
The Guardian gathered that in places like lbeju Lekki, numerous waterfront properties are arising, however those that purchase lands don’t worth the utility created by waterfront. Additionally, the worry of ocean surge is scaring away new traders in some places.
An property surveyor and valuer, Prof. Austin Otegbulu, stated waterfront properties, together with land and seashores are good places anyplace on this planet but when they’re stored in a means that they can not present the providers individuals count on from the places, consumers cannot derive utility and so the worth diminishes.
He stated: “The primary determinant of property worth is liquidity and skill to fulfill human wants and people the property is supposed for. In the actual property economic system, it’s known as actual property productiveness, which is the capability of actual property to have financial actions.
“Each actual property is designed for a selected objective, if it is ready to fulfill that objective satisfactorily for customers, we are saying the actual property is productive. When the waterfront places are turned to dunghill or dumpsite and prison components take over the situation, use speedboats to assault individuals and rob individuals, it turns into an issue.”
Within the landmark space of Oniru, Lagos and Lekki the waterfront places are properly deliberate and constructed up and there are numerous leisure centres within the space thereby creating worth. He stated the deliberate waterfront space is not going to entice excessive worth if the federal government permits criminals to function within the places and dumping of wastes within the space.
Waterfront actual property, he famous, may solely command larger worth and thrive in places the place circumstances for it to flourish are offered. Otegbulu, who can also be a lecturer within the Division of Property Administration, College of Lagos, stated ample safety is essential to larger efficiency of the waterfront actual property market.
He stated: “Residing in waterfront properties is kind of costly since you are overlooking nature. Naturally, waterfront land doesn’t flood relying on the gap between the land and sea degree, so, the efficiency of the sector is relative as a result of when waterfront places are properly deliberate and secured, individuals pays larger for it.
“When there may be flooding within the waterfront space, it’s both as a result of individuals have constructed up land areas of the waterfront and when water flows in, it doesn’t circulation out freely. Initially, in Ahmadu Bello Means when it rains, the properties within the location are flooded however after they’ve solved the issue it doesn’t have an effect on the property worth negatively.”
One other property surveyor and valuer, Mr. Gladstone Opara, stated, the potential in waterfront actual property just isn’t being tapped due to lack of planning and inertia on the a part of the federal government.
Opara, who can also be the President of Worldwide Actual Property Federation (FIBACI), lamented that in areas, the place there are landmark waterfront developments, individuals and authorities tamper with it and minimize off the waterfront.
Opara stated: “The potential of waterfront actual property haven’t been understood. Take a look at the Queens drive in Onikan/Abayomi Drive in lkoyi about 30 years in the past; it was a magnificence to behold in Lagos. Through the years with new authorities coming to energy and since individuals in authorities wish to purchase property in lkoyi, they allotted the waterfront plots themselves and the great thing about Queens Drive disappeared. This constitutes intrusion as a result of individuals will now should sandfill and warp the ecology of the atmosphere. We’re crying over local weather change, this is without doubt one of the causes.
“Even within the Parkview Property that was developed, there was a waterfront on the boundary between Banana lsland and Parkview, however at some extent the waterfront on the Banana lsland space was sand crammed. Folks consider immediately’s achieve, unconscious of tomorrow. ” He identified that waterfront is a facility God offered for mankind for pure anesthetic, rest and extra outlined in actual property growth.
Based on him, many international locations, particularly in Europe that harnessed the potential of waterfront are those that perceive what it means within the growth of their actual property and tourism trade.
He stated: “Waterfront in these international locations attracts larger worth however in Nigeria the reverse is the case. In overseas, the places are at all times guided and monitored. Some areas are marked out as industrial growth and the great thing about such growth is that they’re main sights for vacationers.
“The waterfronts usually are not even secured, they seem so porous that thieves and miscreants can seem to invade individuals’s properties.” Opara known as for rules to right the damages accomplished to waterfront areas. The Waterfront Authority in Lagos, he stated shouldn’t be for cash making however enforcement of rules to protect waterfront actual property/developments.
However a former Chairman of the Nigerian Establishment of Property Surveyors and Valuers, Lagos department, Mr. Adedotun Bamigbola, stated waterfront residential properties stay one of many choicest places in any atmosphere, including that they don’t seem to be disappearing from the market. He stated because of undersupply or shortage of waterfront properties, they’re nonetheless very expensive and maintain rising on a regular basis.
Bamigbola disclosed that in Banana Island for example, waterfront land goes for about N1.4million per sq. metre, whereas common plots within the property go for round N1.1 million per sq. metre.
He stated: “The shortage will be created as a result of individuals are not promoting what they’ve now or as a result of there are hardly any new developments arising. Lekki waterfront was offered a very long time in the past. To get any waterfront property, it will be from the secondary market.”
“Land is under-supplied after which waterfront actual property.” He additionally burdened the necessity to strictly implement legislation prohibiting the sale of waterfront lands by the federal government to keep away from usurping the ecosystem.