Profile Nigeria’s Most Expensive Neighbourhood: Banana Island

Banana Island is a small artificial island in the Ikoyi neighbourhood of Lagos, Nigeria. It is Nigeria’s version of the Seventh Arrondissement in Paris, La Jolla in San Diego, Tribeca in New York City, and Shibuya and Roppongi in Tokyo.

Built in 2000, it is home to some of Nigeria’s wealthiest and most prominent families who appreciate being away from the hustle and bustle of Lagos, the country’s largest city and economic hub.

The distinctive form from which it gets its name.

Boundaries

Located in Lagos Lagoon, the 1.63-million-square-meter island is about 8 kilometres (5 miles) east of Tafawa Balewa Square, the city’s commercial and ceremonial centre. It is linked to the road system in the vicinity of Parkview Estate via a dedicated road. It is bordered by the converging First Avenue and Second Avenue to the north and south, respectively.
Banana Island real estate prices, like the rest of the country, are determined by the value of the land, which is NGN400,000 (US$1,101 per square metre), according to Roberta Nouboue, managing director of Madingwa Real Estate.

Ms. Nouboue stated that the starting price for detached homes on the island was NGN1 billion (2.75 million USD). A six-bedroom detached home on 2,600 square metres of land is currently listed for NGN5 billion, she said.

Single-family terrace/townhouses with four bedrooms cost between NGN350 million and NGN500 million, she said, and typically sit on a lot size of 1,000 square metres.

She mentioned a listing for NGN750 million that is available now. Each of the two townhomes on the 600 square metre lot costs that much.

Ocean Parade Towers, Bella Vista Towers, and Lakepoint Apartments are the three most well-known condo complexes on the island.

Ms. Nouboue explained that high land prices and a lack of available land have led to the construction of more multi-family dwellings such as apartments and terrace houses than single-family homes. Most of them are privately owned, with tenants paying between NGN25 and NGN30 million per year in rent.

A unit can be purchased for around NGN363 million, she said, “because value has dropped significantly in the last three years with the devaluation of the naira. It’s illegal to market real estate in anything but naira.”

According to her, Ocean Parade is the best of the three condo complexes because of all the extra features it offers, such as tennis courts, an Olympic-size pool, two gyms, and play areas for kids.

There were supposed to be 535 property plots on Banana Island, each measuring between 1,000 and 4,000 square metres, housing ultra-luxurious single-family detached estates. The maximum allowed number of stories for a home was three.

As land prices increased over the years, high-rise condo developments were constructed on the north side of the island, which is also home to the commercial corridor. Originally, homes were built on the south side of the island. The Adunola is the oldest of the three mixed-use high-rises, while Lakepoint Towers and Desiderata are relatively new additions.

“The first houses that were built are in British and Dubai traditional styles,” Ms. Nouboue explained. “The newer ones are more modern looking, with straight angles, and they are less elongated because they are on less land, but they are still very ostentatious and have nice gardens.”

Fiesole, Italy, is a charming little town not far from Florence.

Charles Onyenze, an associate at Knight Frank, added that purchasers can select from a variety of two- to four-bedroom en suite flats, maisonettes, and terrace houses. He remarked, “Generally speaking, a very large percentage of homes are customised, while a few are large estates accommodating a number of prototype houses.”

Ms. Nouboue remarked that swimming pools are always a hit with guests. Furthermore, she remarked, almost every home also features a fitness centre.

“Banana Island is a piece of heaven in the middle of noisy Lagos,” Ms Nouboue said, adding that the island has two parks and that apartment buildings are fully equipped with amenities like fitted kitchens, walk-in wardrobes, intercom systems, security surveillance systems and standby generators. To enter the island, visitors must go through a security checkpoint; access is restricted to those who have been extended an invitation.

Because there is little traffic, she said, “you can jog in peace.”

According to Mr. Onyenze, the island’s unique features include a robust security infrastructure, high-quality roads, constant street lighting, and easy access to the waters of Lagos Lagoon.

Having one can boost your social standing as well. It’s a sign of one’s social standing to be seen in Banana Island, he said.

Ultra-Low-Mileage Bugat, derived from penta

High-End Conveniences

While the only businesses on Banana Island’s main street are a café, a barbershop, and a supermarket, visitors can reach the upscale shopping and dining of Victoria Island in just 12 minutes by car.

“Victoria Island is like Manhattan,” Ms. Nouboue remarked.

NOK by Alara, which serves new African cuisine, Z Kitchen, which serves succulent steaks, and R.S.V.P., which serves international cuisine, are some of her favourite restaurants.

She highly recommended “R.S.V.P.” for a fun Friday night out. They have a pool, serve cocktails, and regularly host world-renowned DJs at this posh venue.

To see art, locals take the five-minute drive to Ikoyi. Local auction house Arthouse Contemporary can be found here, as can the Wheatbaker hotel, which frequently hosts art exhibitions and events, and the Nigerian National Museum, which displays some of the finest examples of Nigerian art.

You can go shopping in Ikoyi as well. Zashadu, a retailer specialising in handbags, Ejiro Amos Tafiri, a high-end retailer named after a Nigerian fashion designer, and Grey, a retailer specialising in functional and fashionable clothing, are all examples of upscale retailers.

Ms. Nouboue has also spoken highly of Alara, an African art gallery and store located on Victoria Island. “It’s a beautiful concept store designed by architect David Adjaye, and it has everything from fashion to furnishings,” she said. While Ikoyi is home to only two schools, Banana Island School (for boys and girls ages 1 to 5) and Olive Dale Preparatory School (for boys and girls ages 3 to 6), both are among the best in Nigeria.

There is the coed Lagos Preparatory & Secondary School for kids as young as 18 months and as old as 16 years old; there’s also the British International School for kids aged 7 to 13 with an optional boarding programme; and there’s St. Saviours for kids as young as 6 with a British curriculum.

“Most of the schools stop at the primary level because people tend to send their children to boarding schools in the U.K. and the U.S.,” Ms. Nouboue explained.

Residents are also drawn to the island because of its advanced technological infrastructure, which is unavailable in most of the country. There is a central sewage system and treatment plant on Banana Island, as well as underground electrical and water systems, street lighting, and satellite communication networks.

Where Do They Live?

Expats from the United States, Britain, Lebanon, India, and France join the Nigerian affluent on Banana Island. They have offices in Nigeria and work for companies like the multinational conglomerate Etisalat, the telecommunications company Airtel Nigeria (which offers prepaid, postpaid, and 4G services), the humanitarian organisation Ford Foundation Nigeria, and the legal practise of Olaniwun Ajayi & Co.

Ms. Nouboue remarked, “A large group of people are tenants in the high-rises.” “Most single-family home owners not only make this their permanent residence but also own additional properties in the United Kingdom or the United States.”

She went on to say that the island is great for families, and that the average age of the locals is 45.

Prominent Locals

According to Ms. Nouboue and other published reports, Mike Adenuga, the billionaire owner of Globacom, the country’s second largest telecom operator, and of the oil exploration firm Conoil, resides on the island.

So, according to published reports, does Iyabo Obasanjo, daughter of the former president Olusegun Obasanjo; Sayyu Dantata, son of Alhassan Dantata, who, when he died in 1955 was one of the wealthiest men in West Africa; Kola Abiola, the son of the businessman/politician MKO Abiola; identical twins Peter and Paul Okoye, aka P-Square, the Nigerian R&B duo; and Nigerian mega-blogger Linda Ikeji.

Outlook

Nearly two decades after its construction, Banana Island now faces competition from other high-end resorts in Nigeria.

Even though only the first buildings of Eko Atlantic City, a 10-district, 10-square-kilometer luxury high-rise community being built on Victoria Island on land reclaimed from the Atlantic Ocean, have been completed, Ms. Nouboue claims that they have caused a sea change in the Banana Island market.

“It looks more like Miami, and the ex-pats are starting to like it more,” she said, adding that the project would be finished in about 15 years. Built on a beach, with water views and roads like those in the U.S., it has not had a major impact on prices in Banana Island. However, the availability of more options in the luxury market has likely slowed the rapid price growth that might have been observed a decade ago.

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According to Ms. Nouboue, prices in Eko are significantly higher than on Banana Island, and it is not uncommon to see a one-bedroom flat listed for NGN1billion.

“Banana Island is all about location,” she emphasised. “It’s closer to the airport and to the mainland, but people are selling their mansions and buying three-bedroom apartments because they don’t want to deal with the upkeep or the inconvenience of living without electricity or running water.”

The “real estate market looks promising in the future,” Mr. Onyenze says, “as there are visible signs of massive development in progress.”

Although he did not deny the 30 percent price drop, he insisted, “the economy will improve. It will not be slowed down in perpetuity.”

The appeal of Banana Island, he said, lies in its exclusivity for “the highest echelon of society.”

The devaluation of the naira, falling crude oil prices, inflation, high interest rates, job cuts, and divestment by multinational organisations have all contributed to a 30% price drop in the last three and a half years, as acknowledged by Mr. Onyenze.

However, he expressed confidence that “the economy will improve. It will not be slowed down in perpetuity.”

He cited data from the National Bureau of Statistics showing that in the fourth quarter of 2017, the Nigerian recession ended and that the non-oil sector, which includes construction and real estate, grew by 2.05%.

Given these factors, he predicted that “the highest echelon of the society” would continue to be drawn to Banana Island. Although Ikoyi is home to many prestigious educational institutions, Banana Island is home to only two: Banana Island School, which serves students aged 1 to 5, and Olive Dale Preparatory School, which serves students aged 3 to 12.