There has been an unprecedented rise in demand for residential and commercial properties in Lagos in the last 10 to 12 months, a situation that has sent prices rising high up onto the ceiling and to the rooftop.

Due to a combination of factors and the dream of the average Nigerian to own a home in areas like Lekki, Victoria Island and Ikoyi in Lagos, escalating demand has left supply in its trail, resulting in over a 100 per cent cost hike.

Principal Partner, Messrs. Kola Akomolede and Company, Chief Kola Akomolede, said high demand for residential and office accommodation became noticeable in Lekki and environ about a year ago but it became more noticeable about six months ago with the influx of oil workers from the Niger Delta region.

He said that, as at last December, a prospective buyer could get a four-bedroom duplex in Dolphin Estate for between N38 million and N40 million. But now, he added, the same property sells for between N65 million and N70 million per wing.

Similarly, a three-bedroom flat that cost between N8 million and N10 million last December now goes for between N15 million and N17 million. Also, a terrace house that sold for between N30 million and N35 million in December 2007 now attracts N70 million.

Akomolede disclosed that, in Lekki, a plot of land now goes for between N70 million and N80 million, up from the former prices of between N40 million and N45 million.

Furthermore, a plot of land in Parkview Estate in Ikoyi this time last year sold for between N100,0000 to N120,000 per square metre (m2). However, the same property now sells for not less than N200,000 per m2.

Daily Independent learnt that prices of land and houses in places like Victoria Garden City (VGC), Osborne Road and Banana Island are also on the rise. For instance, a plot of land on Banana Island in Ikoyi now costs between N120 million and N140 million, up from its former price of between N100 million and N110 million last year.

Industry watchers believe that the scenario means that property owners in these areas are smiling to the bank.

"This also includes estate surveyors and lawyers who render one form of professional services or the other to both the owners of the houses to be sold and the prospective buyers," a source said.

Principal Consultant, M. I. Okoro and Associates, Chief Innocent Okoro, said that though there is a boom presently, things would however normalise, probably after the next five to 10 years.

"By the time the road that links Lekki with Epe is completed, development in Lekki will spread to Epe and more houses will be built and the demand for houses in Lekki, Victoria Island and Ikoyi will reduce. In the next five years there will be a drop while the situation will become normal in the next 10 years," Okoro stated.