Prices of Houses in Ikoyi, Lekki, Victoria Island Likely to Drop

With the recent floods experienced in different areas across the nation, Real estate experts, including land and estate surveyors and valuers have said the recent excessive flooding in high brow areas of Lagos, will reduce the desire of many prospective tenants and property buyers for property there.

There are also worries that petroleum products in filling stations’ storage facilities located in the recently flooded areas across the nation have been contaminated.

According to Punch, a senior staff of one of the fuel marketing companies in Lagos disclosed that the fuel in the underground tanks in some of the fuel stations in the flood affected areas would have been infiltrated with water. He added that the contaminated fuel could damage car engines.

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“Some stations may not want to go through the process of draining the water. Lekki, Ikoyi and Victoria Island, among others, are prime areas and that is why we have many standard stations along that line. There are stations that sell one truck a day,” the source said.

The Vice President and Head of Energy Research, Ecobank, Mr. Dolapo Oni, expressed worry at the unknown extent of damage might have occurred as a high percentage of  filling stations use underground tanks to store petroleum products.

“The basic worry is how much of the tanks have been affected. How much petrol could have been adulterated or contaminated with water? What have stations done to reduce the risk of contamination by water?”

The Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Obafemi Olawore, said the appropriate measures are being put in place to look into the extent of damage

He said, “We have our environment, health, safety and quality departments that will look at everything. For major marketers, before we send one litre out, we have made sure that the product meets every standard.”

He added, “If any marketer goes to his station after the flood would have receded, he will check everything; no marketer would sell fuel adulterated with water.”

The Vice President, Africa Chapter, International Real Estate Federation, Chief Kola Akomolede, said the recent flooding would dissuade many individuals from acquiring lands or building flood-prone areas of Victoria Island, Lekki, Ikoyi and others.

He added that there are no readily available alternatives for residents affected by the flood to relocate to.

According to him, “If it were in a country where there are several other choices, people will move en masse from Lekki and Victoria Island axis. We are not likely to see that kind of movement because there are no alternatives”.

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Akomolede included that due to the flood, some properties are likely to remain unrented or unsold for some time, while the flood will supposedly “bring down prices or rent.”

The Principal Partner, Ubosi Eleh & Co, an estate surveying and valuation firm, Mr. Chudi Ubosi, said the recent flooding, would prompt individuals to be more careful about purchasing properties in Lekki.

“Developers will also be a lot more cautious about development, creating adequate channels as much as they can for water to run off,” he added.