Nigerians are increasingly relocating abroad, leading to the sale of land to finance their moves. Those in the diaspora work multiple jobs to buy back land in Nigeria, creating an unending cycle. The land market, especially in urban areas, thrives on remittances, while prices rise in prime locations, suggesting significant demand driven by expatriates. Inflation further influences land valuation, reflecting broader economic challenges.
A significant number of Nigerians are opting to relocate abroad, a phenomenon colloquially termed “japa,” to escape the severe economic hardships that prevent many families from accessing basic necessities. This decision often precipitates the sale of properties, particularly land, as individuals seek funds to facilitate their move, with many viewing this as a permanent migration. Reports indicate that families frequently liquidate their land assets to finance their journeys.
Nigerians living overseas—whether in Canada, the United States, Europe, or other regions—are reportedly working multiple jobs to accumulate the means to purchase land in their homeland, often the very land they sold before departing. This back-and-forth migration creates a continuous cycle where land is central to individual and familial aspirations. The active land market, particularly in urban regions, reflects this cycle keenly.
Moreover, remittances sent home by Nigerians in the diaspora constitute a substantial part of the nation’s economic indicators. Estate developers are increasingly targeting these expatriates as potential investors, illustrated by the demolition of WinHomes Estate—a project where diaspora investments reached approximately $250 million. This site was cleared by the federal government to facilitate the Lagos-Calabar coastal highway construction.
Experts highlight that land prices, driven by diaspora demand and rampant inflation, are on a consistent upward trajectory. Even as inflation rates fluctuated, with a notable peak of 34.80% in December 2024, the market for land—especially in prime urban locations—remained robust. Notably, while prices surged in affluent areas of Lagos, other markets serving low-income buyers did not experience the same growth.
Examples of this price increase include the upscale areas of Banana Island and Old Ikoyi, where land values rose remarkably over six months. In Banana Island, for instance, land prices surged from N1.4 million to as high as N2.2 million per square meter. Similarly, Old Ikoyi saw price increases from about N900,000 per square meter to N1.4 million, illustrating the growing value of prime real estate.
Mr. Emeka Eleh, a Principal Partner at Ubosi Eleh + Co, validates these trends, noting, “Investing in land is always a good decision… unless land becomes degraded, it hardly depreciates.” He adds that other areas, such as Lekki and Ikeja GRA, are also experiencing significant price increases in response to these economic pressures.
The trend of ‘japa’ is reshaping the landscape of Nigeria’s real estate market, creating a cycle of land sales and purchases driven by migration and remittances. This phenomenon reflects broader economic challenges and aspirations, as individuals seek to secure their financial futures through land investments, despite the fluctuating economic environment. Consequently, the demand for land remains strong, particularly in urban centers, where these dynamics intersect with inflationary pressures and growth in diaspora investments.
Original Source: businessday.ng
