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Land Rush in Lagos: Prime Property Values Jump 42%

Despite a struggling construction sector, Lagos' land market is experiencing a surge, driven by high inflation and a devalued naira. This trend offers attractive returns for investors in prime locations, but presents challenges for budget-conscious buyers.

Land Rush in Lagos

Prime Land Sees Explosive Growth

Land prices in Lagos' most prestigious areas, like Banana Island and Ikoyi, have skyrocketed in recent months. Banana Island, home to Nigeria's elite, saw a staggering increase of 43-57% per square meter, with prices reaching N2.2 million by March 2024. Ikoyi followed suit with a 62-75% increase, pushing prices to N1.4 million per square meter. Victoria Island, more commercially focused, also saw a healthy 33% rise.


Investors Seek Refuge in Land

Experts attribute this boom to inflation hedging. Emeka Eleh, a real estate leader, explains that with a troubled economy, investors are turning to land as a safe haven for their assets. Land, unlike some other investments, rarely depreciates and offers a potential for future appreciation.


Lekki Shows Strong Growth, Other Areas More Modest

Lekki, Lagos' fastest-growing real estate corridor, experienced a remarkable near-doubling of land prices, with per square meter costs reaching N850,000. However, established areas like Ikeja GRA saw a more moderate increase of around 45%.


Construction Sector Struggles

This land market boom stands in stark contrast to the construction industry's current woes. Gbenga Olaniyan, CEO of Estate Links, highlights the challenges faced by developers. Rising material costs, inflation, and a volatile exchange rate have disrupted contracts and forced renegotiations.  Some projects have even stalled entirely.


A Tale of Two Markets

Lagos' real estate market presents a tale of two sectors. While prime land offers lucrative opportunities for investors with deep pockets, the construction industry grapples with inflation's harsh realities. This situation creates a complex landscape for both developers and potential homeowners.

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