Development has been consistent along the east coast of Lagos (Victoria Island, Lekki, Ajah) as a result of booming real estate activities. As the city suffers further congestion, with developments spilling into neighbouring areas, Ibafo presents a world of opportunities in real estate investment.

Lagos ranks highest in the real estate industry in Nigeria, being the commercial nerve centre of the country.

Development has been consistent along the east coast of Lagos (Victoria Island, Lekki, Ajah) as a result of booming real estate activities. As the city suffers further congestion, with developments spilling into neighbouring areas, Ibafo presents a world of opportunities in real estate investment.

Lagos ranks highest in the real estate industry in Nigeria, being the commercial nerve centre of the country. Population has been on a steady rise as more businesses and job opportunities emerge in the city, thereby leading to congestion and pressure on the demand for property, which is currently inadequate. This is felt more in major areas around the Island where people work. The effect is a spillover to nearby settlements like Ibafo, Mowe, Ofada, Magboro and Arepo, which are less populated and have more affordable properties.

Brief on Ibafo
Ibafo is a small community in Ogun State located along the Lagos-Ibadan Expressway. It is about 15 minutes drive from former Lagos toll gate, just before Christ Embassy camp ground. But, with the road reconstruction going on it may take a little  longer. Ibafo and its neighbouring towns came into limelight when churches began to build campsites along the Lagos-Ibadan express road.
Notable among them are: The Redeemed Christian Church of God, Mountain of Fire and Miracles, Assemblies of God and others.

A number of Ibafo residents work in Lagos while others are local traders, artisans, local house agents, civil servants and corporate staff. Major commercial activity is retail shops. There has been an upsurge in the number of people relocating to Ibafo from Lagos due to lower rent costs. According to a realtor who operates in Ibafo, other reasons have been the serenity of the environment and its nearness to Lagos business districts.

Development/Trend
Demand for property has been on the increase, especially in the last two years. A plot of land that sold for N300, 000 in 2006 now goes for almost double the price. A property agent says,”My friend bought a plot of land near Ibafo for N350, 000 three years ago, but today land around that area sells for more than N1.5 million.

Physical development in Ibafo is slow, as there are no tarred roads yet, save the express road linking commuters to other parts of the country; hence, its strategic location, which also provides easy access to Lagos and other properties along the express road.

Major real estate activity revolves around land buying and selling and the construction of mostly residential property. Buying of land is on the rise as more investors become aware of the opportunities in Ibafo. There are more residential properties due to demand; you can find a good number of residential properties at Oke-cele, the right hand side of the road if you are coming from Lagos.

Most house owners in Ibafo would rather build, occupy a portion and let out the rest. Given the rate of movement to Ibafo, the current supply of property may not cater for the rising population. However, developers have expressed interest to embark on more property development projects in Ibafo, with more focus on estates development; Ofada, Mowe and its environs are already witnessing such developments.

Prices
A plot of land along the tarred road goes for between N1.5 million and N3 million, especially in Oke-cele. On the other side, popularly called 'Across', where you find more indigenes, prices begin from N1.2 million upwards. Moving further inside on both sides of Ibafo a plot could sell from about N450, 000 but in swampy areas they sell for less.

For rented apartments, a 2-bedroom flat goes for between N80, 000 and N150, 000; 3-bedroom flat goes for between N120, 000 and N200, 000, while a 4-bedroom flat could be rented for about N150, 00 to N200, 000, depending on the finishing. However, your bargaining power will be an asset when buying land in these areas, as this will determine how much you eventually pay.

Strategy
A major strategy is to acquire land facing the major road or around it. Land near the express is more expensive and are often reserved for companies, churches and industries but not for residential building. To cash in on this, investors acquire large expanses of land along the major road and areas around it waiting to sell later or develop for other real estate purposes.

Opportunities
With the congestion in Lagos, Ibafo provides a good get-away and a good opportunity for property developers, manufacturing companies and industries. Major attractions for Ibafo include its major link road to Lagos, where the bulk of consumers reside, less traffic, and the cost of acquiring property is more affordable when compared to Lagos.

Managing partner for Ade Akosile, Akosile S.A., says after Lekki-Ajah axis the next place to invest in is Ibafo, given its proximity to Lagos and the major business districts, which are factors worth considering. Besides, he adds, investors and developers are already looking that way for the construction of middle and low income housing.

There is room for the provision of standard hospitals, schools and shopping malls, which will soon be in demand as population grows in that direction. These are also investment opportunities.

We foresee further developments in Ibafo as the Lagos/Ogun state mega city plan continues to unfold. Other areas to benefit from this expansion includes Isheri, Mowe, Ofada and their environs.

Akosile says investors and developers with foresight are already acquiring property around these areas. “While some will speculate with their property, others plan to develop the property and give them out on lease or rent.” However, he advises that it is best to go in while the opportunity is still hidden.

Looking ahead
Though physical and infrastructural development may be slow now, we believe Ibafo is a profitable investment. If in less than 24 months prices have increased by over 50%, we see Ibafo real estate market retaining the tempo in the next 12 to 18 months. The Lagos/Ogun mega city plan, development and expansion along Lagos east coast and further migration towards Lagos/Ibadan Expressway will impact on real estate in Ibafo in the months ahead.