A Familiar Pattern Repeats: Development activity expands on North West V.I.

A Familiar Pattern Repeats: Development activity expands on North West V.I.

Four years ago, Estate Intel examined the South West region of Victoria Island, which began to experience an uptick in development activity in 2022, indicating increased investor interest in the area. Among other factors, this was a result of the revision of the Victoria Island Model City master plan in 2013, which laid the groundwork for a broader focus on the area’s other regions beyond Core Victoria Island.

More recently, we have noticed that development activity is expanding once again. This time, we see a new batch of residential and mixed-use projects coming into the North-West region, growing its total count of prime residential and commercial developments.

Background: North-West, Victoria Island

North-West Victoria Island is bounded by Ozumba Mbadiwe Avenue to the North, Akin Adesola Street to the East, Adeola-Odeku Street to the South, and Ahmadu Bello Way to the West. 

Akin to other parts of Victoria Island, this sub-region is home to multiple Federal organisations, low-density office buildings, and hotel facilities, while holding the lion’s share of Victoria Island’s diplomatic missions, with over 13 foreign embassies out of 27 in Lagos.

In the mid 2010s, South East Victoria Island had the highest number of luxury residential towers, including Pier Harbour, Laila Tower, Aya Tower, Rose of Sharon Tower, South Port Harbour, and Insim Twin Towers, among others. Following closely, the North West region had the second-highest concentration of luxury units. These include Centre Heights,  Royal Residence formerly Eden Heights, Crestview and Olympic Towers, Vita Towers.   

Over the past 12 months, however, the submarket has been expanding, particularly within the residential segment. More notably, the region’s pipeline is now dominated by deluxe and luxury apartment projects such as Elysian Rise, Reportage Tower, Trimnell Tower, The Alfred, Kadars Gate, The Gaia, Ozumba Mbadiwe Tower, Xamira Heights, Amoretto Luxury Apartments,  11 Goriola, and Hebron Tower, with recent completions including La Paz Apartments, The Oak Residence, and Bluerock Residences. 

This uptick raises a critical question: What is driving this growth? Are developers responding to untapped demand or just jumping on the JV bandwagon? Here are a few ideas: 

What are the key drivers of this growth?

1. Demand for residential apartments in proximity to offices

North-West Victoria Island benefits from its proximity to major commercial corridors like Adeola Odeku Street, Ozumba Mbadiwe Road, Kofo Abayomi Street, and adjoining arterial routes. While close enough to serve professionals working in the island’s business districts, the area retains a more residential identity compared to the commercial-heavy core. This positioning has made it particularly attractive for prime residential living, serving professionals and affluent families seeking modern accommodation within the area.

2. Land cost becomes a competitive advantage for NW Victoria Island

The average land price of the North West region sits around ₦2,000,000 per sqm. The graph below distinguishes it as a more affordable alternative to the Core VI and South West area, while remaining strategically closer to these commercial hubs than the cheaper South East region, with an average land price of ₦1,700,000 per sqm.

Unlike Core VI and South West, where limited land availability has driven up prices, North West still has more land available for sale, allowing developers to acquire property at lower costs without sacrificing proximity to established commercial infrastructure.

3. Calmness of Inner streets becomes a market differentiator

Luxury developers are strategically capitalising on the serenity of the North West region. In contrast to the more commercially active corridors with busier arterial routes, including Churchgate Street and Sanusi Fafuwa Street in the Core VI, North West’s inner streets, such as Sapara Williams Close, and Goriola Street, exhibit a different urban character.

These inner streets are largely insulated and are better positioned to accommodate low to medium-density residential developments, offering a quieter living environment. This locational advantage also strengthens the investment case for developers and capital partners seeking to deliver high-end residential projects within a calm yet centrally located district. 

North West VI Pipeline Developments

Currently, the residential sector holds 75% of the total pipeline,  the office pipeline makes up 18.8%, while the health sector holds 6.3% of the total pipeline. Notably, non-residential projects such as Lagos American Specialist Hospital and the Vestor Office have been put on hold. 

Here are the Pipeline Projects in North-West Victoria Island:

So What?

For landowners in North-West Victoria Island, this is a defining moment to clarify strategy. Investor appetite is strengthening, and the current opportunity window is finite. Whether the objective is to monetise, structure a development partnership, or retain the asset for long-term appreciation, decisions should be made with a clear understanding of the market’s timing, trajectory, and the shifting dynamics now underway.

We love your feedback! Let us know what you think about the North-West Victoria Island by emailing [email protected].

If you have research requirements or are considering investing in Nigeria’s property market, contact our Capital Advisors team at [email protected].