Property prices soar at Mowe-Ibafo

By Rasheed Bisiriyu
Published: Monday, 20 Oct 2008
As more estates spring up in Mowe, Ibafo and Ofada, all small towns in Ogun State, on the border of the Lagos-Ibadan Expressway, property value has appreciated on the axis by over 150 per cent in the last one year.

Before now, Mowe-Ibafo used to be known mainly as prayer centres or camps for different religious groups, while Ofada was famous for local rice.

But all that is changing. And considering its proximity to Lagos, observers say the rate of estate development on that axis may rival Lekki, which is considered the fastest developing corridor in Africa.

For instance, it was gathered on Friday that the cost of land and houses in some estates had appreciated by between 50 per cent and 300 per cent in the past year. And many of the estates are still under construction.

A Lagos-based real estate development company, Messrs Propertymart Limited, which recently commenced construction work on its new project at Mowe, the Palms Garden Estate, gave a promo price of N475,000 for a plot of land.

According to the Head of Marketing, Mr. Adesope Adeyinka, the price would soon shoot up to N750,000 as soon as the limited plots for the promo offer are exhausted.

Similarly, a plot of land that sold for N450,000 at Crystal Park Estate in August 2008 jumped to N750,000, representing some 60 per cent increase. Messrs Vetra Ventures Limited is developing the estate.

Another developer, City Planning Properties Limited, has reportedly jacked up the price of a plot of land at its Sherry View Garden, Ofada, under the site and service scheme by 100 per cent. It was increased from N400,000 to N800,000.

The Chief Executive Officer of the property company, Mr. Niyi Odutayo, said last month that 1,000 plots had already been out of 1,300 plots available for sale.

Honeyland is also a largely site and service scheme on 50 acres of land at Ofada being developed by OMF Properties Limited, a subsidiary of Oasis Savings and Loans. According to the Managing Director, Oasis, Mr. Rotimi Omosehin, the estate is planned as a low-cost housing to accommodate 210 plots, out of which 170 plots have been sold in less than two months.
The story is the same at the New Creation Properties Limited’s “Covenant Garden City, which reportedly recorded an over 50 per cent price increase. A plot of land that sold for N500,000 in July is said be going for N800,000.

An over 300 per cent price increase was reported in the last one and a half years at the “Golden Heritage City” as the cost of a plot of land rose from N280, 000 to N1m.

Developers and property managers are also raising prices of houses and rent rates.

For instance, the average cost of a three-bedroom bungalow is between N5m and N6m, up from between N2.2m and N3.6m less than two years ago.

A source also recalled that occupants of some estates were stunned recently when their landlords or estate managers confronted them with upward price reviews.

Speedwall Chief Executive David Wardlaw commented that "the only way developers in Nigeria are going to be able to meet demand at affordable prices is to adopt systemised building methods such as Speedwall's patented building sytem. Until they do the upward price pressure on land, materials and labour will push housing out of the reach from those who really need it"

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