The ‘japa’ wave in Nigeria drives a continuous cycle of land sales as many relocate abroad to escape economic hardships. While Nigerians abroad work to repurchase land back home, escalating prices in prime areas reflect the demand fueled by remittances. The trend raises concerns about accessibility to property for local families amidst rising inflation and is influencing changes in the real estate market.
In recent years, many Nigerians have opted to relocate abroad, a phenomenon termed ‘japa’, driven by severe economic hardship that restricts access to basic necessities. This trend has significantly impacted property ownership, as numerous individuals sell land to finance their departure. It is common in various communities for families to divest real estate to support this permanent relocation, indicating a broader migration pattern among the populace.
Nigerians abroad, whether in Canada, the United States, or Europe, are often engaged in multiple jobs to accumulate funds for purchasing land back home, leading to a cyclical pattern of land transactions. Families sell property to japa, only to seek to reinvest in land upon their success abroad, generating a continuous demand for real estate that fuels market activity, especially in urban areas.
The influx of remittances from Nigerians living overseas has become a critical contributor to the country’s economic growth, prompting estate developers to cater specifically to this demographic. Recent developments, such as the demolition of WinHomes Estate in Lagos—where approximately $250 million had been invested by Nigerians in the Diaspora—illustrate this trend and its implications on the local property market.
Experts indicate that rising land prices, especially in prime locations, are driven by both increasing demand from the Diaspora and inflation. For example, inflation rates peaked at 34.80 percent in December 2024, significantly raising the cost of living and property ownership for many families in Nigeria.
In high-value areas such as Banana Island and Ikoyi, land prices surged dramatically within six months, with prices at Banana Island increasing from N1.4 million to between N2 million and N2.2 million per square metre. This trend underscores a concerning reality for ordinary Nigerians who aspire to enter the real estate market but face escalating prices that are largely unaffordable.
Emeka Eleh, a Principal Partner at Ubosi Eleh + Co, pointed out the value of land investments amid economic downturns, stating, “Investing in land is always a good decision… unless land becomes degraded, it hardly depreciates.” He noted significant price increases in other thriving real estate areas, reinforcing the notion that land remains an appealing investment option for those seeking to safeguard their finances in uncertain economic climates.
The current trend of ‘japa’ among Nigerians underscores a significant land transaction cycle, where properties are sold abroad to finance relocation, only to invest back in real estate after establishing themselves abroad. Meanwhile, escalating land prices reflect the increasing demand driven by Nigerians in the Diaspora, coupled with rampant inflation, placing home ownership out of reach for many. This interplay contributes to the vibrant, albeit challenging, real estate market in Nigeria, particularly in affluent urban locations.
Original Source: businessday.ng
