Ikate is an emerging middle income neighbourhood along the Lekki-Epe Expressway in the Eti-Osa Local Government. The region starts from Freedom Way in Lekki Phase 1 to the left, and Oniru to the right, and ends at the right side of Ilasan, along the Expressway. Its borders terminate at the shores of the Atlantic Ocean on both ends.
Due to its origination from Freedom Way, projects along the road and some part of Ikate are frequently described as Lekki Phase 1 extension. Our interaction with agents who are active in the market reveals that people who desire to rent or buy property in Lekki Phase 1, but cannot afford it, typically resort to Ikate as an alternative.
The neighbourhood has been growing in importance due to its proximity to Victoria Island, and Ikoyi through Lekki Phase 1. Accessibility to business districts is a major driver of real estate value, and the connectivity that Ikate provides to the aforementioned commercial hubs is making the neighbourhood even more alluring.
This growth narrative has encouraged developers and investors to take positions and tap into the strong demand potential within the Ikate residential market. So far, Ikate is predominantly residential, with a number ongoing and completed projects within this segment, even though a handful of these projects are increasingly being used for short lets. We are tracking some of the ongoing and recently completed projects in the neighbourhood.
Ikate Residential Market Analysis, Estate Intel
Currently, Estate Intel is tracking a total of 325 completed units in Ikate, even though the total stock is much more than that, and 615 units in the pipeline. The data that we have gathered so far shows that the average rent for a 3 bed apartment is N3,500,000 and the same currently sells for N58,300,000 representing a yield of 6.45% per annum.
Rents and sale prices in the area have grown by 8.4% and 20.8% respectively over the past 5 years. Based on the data we have tracked and our experience with the market, we believe the market direction for Ikate over the next few years is neutral.
Click here to read the Ikate residential market analysis which gives a more in-depth analysis of other market data that we track including; sales and rental rates, yields, supply drivers, stock breakdown, occupancy rate, and information on key contractors who are active in the market.
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