LEKKI PHASE 1 TURNS INTO VICTORIA ISLAND?

This is an article we wrote in June 2012 on the concerns of residents of Victoria Island. Tagged “Victoria Island loses residential appeal” it goes thus: Living in Victoria Island can be a privilege few people can lay claim to. But while there are advantages of living there, the flipside cannot be ignored. One of the benefits residents enjoy is that it is considered to be relatively more secure, accessible and self-contained. Also, because of the proximity to their offices and businesses, residents do not need to spend hours in traffic everyday as many do in Lagos.

However, the increasing commercialisation of the
neighbourhood is posing a serious concern to the residents. Indeed the situation is such that the demand for commercial properties is so high that it now outstrips the demand for residential accommodations, which is ironic as Victoria Island was originally a residential area. Commercial activities are causing the deterioration in the traffic situation currently being experienced which is affecting free movement of people. The situation is such that people are choosing to live in the less commercial neighbourhoods Oniru, Lekki, and Ikoyi rather than Victoria Island. The lamentation of an old resident below tells it all.

“My house is completely covered now” – Victoria Island resident
“We moved into our house which is off Sanusi Faunwa Street in 1982. Victoria Island then was a quiet beautiful mostly residential estate. My children used to catch small fish and tadpoles in the drains around Adeola Hopewell street.it is difficult to put a finger on when the change to commercial character of the location began but I believe it was driven first by the new generation banks, GT Bank, Zenith and so on and then more banks came and then the telecommunications industry. All wanted to have their offices in V.I. before I knew it my house was surrounded by high rises and when in the past I could see the main Akin Adesola street from my bedroom window now I cannot even see down my road. With the noise, traffic, pollution and no power due to over load by commercial entities during the day and prostitutes and mad men moving around at night, V.I is not the ideal place to have your home.”

Fast forward to October 2016 and the Lekki Phase 1 resident is singing the same tune. There are virtually no more residential properties on Admiralty Way, the major thoroughfare of the Government built estate.  All the commercial banks with the exception of Guaranty Trust Bank (it is building a major branch on the road), Union Bank and Unity Bank have a presence there. In fact, Zenith bank is building another branch. At last count there were 12 mini malls on the street as well as two petrol stations. There are lounges and night clubs on the street as well as numerous eateries and restaurants. It is not only Admiralty Way that is affected by the growing commercialisation, the Fola Osibo/Emma Abimbola Cole Street as well as Admiralty Road are more commercial than residential. Pockets of commercialisation are also turning up on other major streets. Apart from high end businesses, many professional firms and small businesses have set up shop there, attracted by the relatively lower rents compared to Victoria Island. Scores of schools, hospitals, supermarkets, salons and all manner of businesses have the estate as their address.  It is therefore no surprise that the latest IMAX Cinema saw Lekki Phase 1 as a viable location for its business.
With all these commercial activities, comes many negative effects. Traffic in Lekki is horrendous at peak times and that kind of traffic is gradually becoming the norm all the time. There is significant noise pollution and as in Victoria Island, prostitutes and all manner of unsavoury characters walk the streets….at night and day!  (There are rumours of a strip bar featuring nude dancing girls on a street off Admiralty Way)  
Will there be an exodus of residential occupants from Lekki 1 as there was in Victoria Island, in the coming years?  It’s a watching and waiting game.

PRICE WATCH - LEKKI
The rent of 5/6 bedroom detached houses in Lekki Phase 1 should be in the region of N5m – N8m per annum depending on the virtues of the property in question. So what are we to make of such property in the same estate on the market for rents of two to three times the going rate? It makes sense when you look at the street the property is on. Lekki Phase 1, as we have reported in the past, is fast taking on a Victoria Island look with commercial high streets and side residential streets. Because of the demand for the high streets, the rents reflect this pressure.

There are also opportunities to convert existing properties into shopping malls and for other commercial uses which means even higher rents for savvy landlords and developers. The high rents will in turn affect land and property values. We are looking at N250,000 per square metre for land on Admiralty Way compared to N150,000- N180,000 per square metre for plots in other parts of the estate


Sourced- Castles