This is one of the most common statements you’ll hear from people in Nigeria, especially those unfamiliar with how the real estate industry works.
The idea of something being “overpriced” usually comes down to paying more than you feel you’re getting in return. And while there’s some truth to the sentiment—after all, there’s always that one “Judah” in every twelve (and trust me, they’re always the loudest)—it’s essential to look beyond the surface. Factors like speculation, middlemen (agents), and developers eager for quick profits all contribute to the perception of inflated prices.
But what really makes real estate in Nigeria seem expensive? Let’s break it down.
Why is Real Estate Pricey?
First, it’s important to note that the cost of real estate in Nigeria varies widely depending on location, and Lagos, which I’ll focus on here, is no exception. Several factors determine the value of a property:
- Location
The location of a property is one of the biggest factors in its pricing. Areas like lekki and Ikeja with more economic activity and infrastructure development naturally command higher prices. Other areas like Gbagada, Maryland, Ikoyi, Victoria Island etc. are highly developed and residential which also command high prices. The busier or more developed a location, the higher the cost. - Land Acquisition Costs
The price of acquiring land is a major contributor. As land becomes scarcer, especially in prime areas, its value increases significantly. - Building Materials
The cost of construction materials, many of which are imported, adds to the overall expense. Changes in global market prices and local availability also influence these costs. - High Demand for Housing
The growing population and urban migration mean there’s a constant demand for housing, particularly in cities like Lagos. More demand naturally pushes prices higher. - Facilities and Amenities
Properties equipped with modern amenities, such as gyms, pools, and security systems, are priced higher because they offer additional value. - Inflation
Inflation is perhaps the biggest culprit. With the rising cost of living, everything—from building materials to labor—gets more expensive, and that inevitably affects property prices.
Real Estate That Offers True Value
Despite the challenges, there are properties in Nigeria that provide real value for money. These properties take all the above factors into account and deliver on quality and investment potential.
Here are some options to consider:
- Bloom Haven Residences – Chisco Elegushi, Lagos
- Bloom Residences – Osapa London, Lagos
- Bloom Towers – Oniru VI, Lagos
- Cynergy Gardens – Ibeju Lekki, Lagos
- Bryan’s Court – Osubi Warri, Delta State
When you’re looking to invest in real estate, it’s crucial to ensure that the property aligns with your needs and delivers value. With the right information and a keen eye, you can find investments that are worth every naira.