Over 1,000 housing units are being built on the Oniru & Lekki Phase 1 (Right) Waterfront - Here's what it means for their residential market

Over 1,000 residential units will be delivered in the next two years on the Water Corporation Drive -Trinity Avenue – Okunde Bluewater Zone – road stretch. This road stretches from the Oniru neighborhood down to the Lekki Right (right-hand side of Lekki Phase 1).  The Oniru neighborhood is popularly known as the Victoria Island Annex or Extension, as it is the area that connects Victoria Island to Lekki Right.

Map showing Oniru, Lekki Phase 1 Right, and Lekki Phase 1 Left

Oniru is notable for its leisure spots, entertainment developments, and beaches, especially because of its long stretch of waterfront area. Some of these developments include; Twinwaters Entertainment Center, Landmark Towers, Landmark Retail Boulevard, Landmark Beach, The Good Beach, and La-Campagne Tropicana Beach – Oniru, amongst many others. 

Furthermore, there are a number of interesting residential projects on this road stretch that are currently in the pipeline. In this article, we highlight key interesting facts about the upcoming pipeline on this road stretch, as well as how this would affect the residential market in this area. 

Below is a map showing the properties we track on this long stretch of road, that connects Oniru to Lekki’s Right side:

 

Over 1,000 Units Of the Pipeline On the Water Corporation Drive -Trinity Avenue – Okunde Bluewater Zone – Road stretch will be completed by the end of 2025

Based on the data that we track, over 1,000 units are currently under construction. The pipeline in Oniru represents 45.69%  of the total stock in Oniru. This incoming supply will seek to offset the spilling demand that Oniru usually gets as a result of being an extension of Victoria Island. Notably, a total of 26.4% of the pipeline will be completed by 2023, while 17.5% will be completed by the end of 2024. A more significant part of the pipeline, 46.7% will be completed in the year 2025, and the remaining 9.4% is currently on hold. 

The properties on this stretch are built by some notable developers including 

• Landmark Group
• Digital Landlords Nigeria Limited
• Grenadines Homes
• Cepstar 7
• Deluxe Residences
• Vava Developers

Off Plan Prices and Foreign Exchange Rates Likely to Affect Sales Price Appreciation

There is likely to be a stable growth in sales prices, as most of these properties are being sold off-plan. Up to 70% of the projects are off-plan projects, and this gives buyers the opportunity to buy at a lesser price than usual, and then get a return on investment from the properties’ appreciation at its completion. 

On the other hand, there is the foreign exchange rate factor. The dollar to the naira exchange rate in parallel (black-market) rates would directly affect properties priced in dollars. For example, even though the sale prices in dollars may not change as much in the last year, the over 40% decrease in the naira’s value in the past year will automatically lead to increased sales prices when converted to the local currency. 

The upcoming supply will positively impact the Oniru Short-stay market.

Oniru is one of the preferred destinations for short-stay alongside other prime areas like Lekki Phase 1, Victoria Island, and Ikoyi. A number of the residential properties in Oniru environs have been converted into short-stay properties or are being used for short-stay during festive seasons. One notable development is the Bluewaters Apartment, which has about 75% of its apartments used as short-let.

This means that the supply of these properties is likely to add to the existing supply of short-stay properties as investors can leverage it. It should be noted however that these properties are not purpose-built for short-stay like some of the properties we mentioned in a similar Freedom Way article, Lekki Phase 1.

The Waterfront Properties are likely to fight for their waterfront with  Eko Atlantic City

When a developer intends to build in a location, it is essential to look at the existing masterplan of that area by the government to ensure that the use planned by the government matches its intended use. Also, this is necessary to ensure that the development remains in a suitable location and sustainable manner. In this vein, it is essential to mention that the Eko Atlantic City currently under construction has been planned to extend up to the third roundabout after Lekki main roundabout. This is where Ikate begins.  

What this means for developers is that the seeming waterfront properties are likely to be blocked by residences in the Eko Atlantic area, except the heights exceed those at Eko Atlantic. 

It will be interesting to see how this factor could affect the upcoming completions in the mid-long term horizon. 

 

Image of Eko Atlantic City Masterplan showing how it extends to the 3rd Roundabout

 

The incoming supply will cause an increase in traffic on the road stretch as an alternative route

It is also notable to mention that the Water Corporation Drive -Trinity Avenue – Okunde Bluewater Zone – road stretch is an important alternative route being used by drivers who want to avoid the traffic on the Lekki-Epe Expressway. However, the road on that stretch could be more commendable, as there are a lot of potholes and bad spots. This situation causes a slowdown in the movement of cars. There is likely to be an increase in traffic with the additional 1,000 Units+ of properties to be occupied on this road stretch. In view of this, the Lagos State Government should consider an early repair of this road stretch as well as some of the inner roads which will likely be used by most of the occupiers.

We love your feedback! Let us know what you think about the additional units being built on the Oniru-Lekki axis and what you think this means for the residential market in this area by sending an email to [email protected].