Despite being regarded as the commercial capital of Lagos, development has not been very well spread across the 8,000,000m2 region that is Victoria Island (V.I). Estate Intel sampled over 150 major projects delivered in V.I over the past 20 years, and noted that only 12% of these projects were delivered in the South West area, while Core and North West V.I accounted for over 61.5% respectively.
Recently, however, that story has been changing! In the past 12 months, new completions and development starts are giving South West V.I a fresh chance for greater relevance within the commercial capital. Before we discuss why, here’s a brief background.
Background
South West V.I is bounded by Adeola Odeku Street to the North, Akin Adesola Street to the East and Ahmadu Bello Way to the South and West.
The images below depict the existing use of land and the proposed use of land within the 2006 Ikoyi-Victoria Island Model City Master plan. In the first image, it is clear that the region had an existing use with a mix of residential, institutional and commercial allocations, but the proposed use, shown immediately after, indicates that the Government’s vision for the region at the time was residential. Since then, it has been largely adhered to.
Why is this development happening?
The New Master Plan has changed, abit:
The new and Revised Model City Plan for Ikoyi – Victoria Island Model City Plan between 2013 – 2033 took a different approach. As the revised plan below shows, most of what is planned within this region is now a combination of ‘High Residential’, ‘Medium Residential Districts’ and more importantly ‘Mixed-Use Districts’. More importantly, due to the introduction of Eko Atlantic the physical characteristics of the area have changed. These new introductions have made room for new property investors to proceed with more aggressive development activity.
States Liaison Offices are opening up for business
Since the early 2000s, most of the use in the region included State Liaison Offices, Governor Lodges and a number of old and corporate occupied residential properties. For the most part, State Liaison Offices and governor lodges were derelict and unused. Up until recently, we had seen minimal activity from the governor lodges and state liaison offices. However recent disposals and leases show that this semi-regional landlord category is willing to do business with potential developers in need of land to execute. Here are a few recent examples:
- Paelon Hospital acquired and extended an old Liaison Office House in 2017. It is now home to a large hospital with a Gross Built Area of over 1,100sqm.
- La Roche and other businesses recently occupied the Kogi State Liaison Office on Bishop Oluwole Street using it as a showroom for the fixtures and fittings they sell.
- Earlier this year, The Ondo State Government, Ondo State Development and Investment Promotion Agency (ONDIPA) entered a joint venture with Prestige Homes to develop a mixed-use property with entry access on Bishop Oluwole Street and Ahmadu Bello Way.
- The Benue State Liaison office was also partially converted to a hotel that is now under the management of Presken Hotel & Resorts.
What are the biggest projects?
Within the quadrant, some of the largest projects that are active or recently completed include:
- Street: Bishop Oluwole Street
- Use: Office
- Developer: Nigeria Insurers Association
- Completion: 2022
- Status: Recently Completed
1049 Abagbon Close
- Street: Abagbon Close
- Use: Office
- Developer: Primegate Properties
- Completion: 2022
- Status: Completed
- Street: Bishop Oluwole Street
- Use: Office
- Developer: Aerobell Properties Limited
- Completion: 2023
- Status: Under Construction
Victoria Island Trade Centre
- Street: Saka Tinubu Street
- Use: Mixed Use
- Promoter: Clayring Services
- Completion: 2023
- Status: On Hold
- Street: Ahmodu Ojikutu Street
- Use: Office
- Developer: Coronation Group
- Completion: 2018
- Status: Completed
- Street: Saka Tinubu Street and Ahmodu Ojikutu Street
- Use: Mixed Use
- Developer: Dillon Homes
- Completion: –
- Status: Conceptual
NIBBS Renovation
- Street: Bishop Oluwole Street and Ahmadu Bello Way
- Use: Office
- Developer: NIBBS
- Status: Completed
Mixed Use Project by Ondo State Government Project
- Street: Bishop Oluwole Street and Ahmadu Bello Way
- Use: Mixed-Use
- Developer: Ondo State Government, Ondo State Development and Investment Promotion Agency (ONDIPA) and Prestige Homes
- Completion: 2024
- Status: Site Clearing
- Street: Bishop Oluwole Street and Ahmadu Bello Way
- Use: Hospitality
- Developer: Ekulo Group
- Completion: 2024
- Status: Under Construction
Wheathill Hospital
- Street: Oju Olobun Close
- Use: Healthcare
- Developer: Private Individual
- Completion: 2023
- Status: Under Construction
Other projects on the outskirts of the quadrant such as Number One and Pactum Towers were excluded as development activity there was largely driven by high street and high traffic, slightly different from internal dynamics we’ve seen within the quadrant.
What does this mean for you?
Supply will trend upwards
As new land parcels become available for sale or for joint ventures, we can expect more supply to come into the Victoria Island region, especially within the mixed-use, office and residential sectors. Even though Ikoyi’s Kingsway artery has become a preferred option for a number of corporations, Victoria Island will still remain the commercial capital for the foreseeable future.
If you own land within the region, now might be a good time to also consider your options. Especially with greater interest emerging from prospective investors.
What are your thoughts on Victoria Island’s relevance as a commercial node? Let us know on LinkedIn or send an email to insights@estateintel.com.
