The trend of ‘japa’ among Nigerians, driven by adverse economic conditions, has led many to sell their land to fund their migration abroad. Those overseas often work multiple jobs in order to buy land back in Nigeria, creating a continuous cycle of land sales and purchases. This has stimulated an active real estate market, especially in urban areas, leading to rising land prices, particularly influenced by diaspora investments.
In recent years, a significant number of Nigerians have chosen to emigrate for better opportunities, a trend colloquially referred to as ‘japa’. This surge in migration is primarily driven by poor economic conditions that have made basic necessities unaffordable for many families. To finance their relocation, many are selling off assets, predominantly land, thereby contributing to an ongoing cycle of selling and buying land tied to migration.
Remarkably, Nigerians abroad are often engaged in multiple jobs, with the intent of purchasing new land back home. Ironically, this creates a loop where individuals sell land to move abroad, only to work hard overseas to afford land upon their return. This dynamic has resulted in a vibrant land market, especially in urban areas, reflecting the ongoing influence of remittances from the diaspora on Nigeria’s economy.
The appeal of the real estate market to diaspora Nigerians has prompted estate developers to target this demographic aggressively. An exemplar of this trend is the demolition of the WinHomes Estate in Lagos, where $250 million was invested by Nigerians overseas to create a serviced estate. The government’s decision to clear this site for the Lagos-Calabar coastal highway illustrates how infrastructural developments affect the land market.
Experts indicate that land prices in Nigeria consistently rise, influenced by high demand from diaspora members and inflation rates. Despite inflation peaking at 34.80 percent by December 2024, land in prime locations, particularly Lagos, has seen escalating prices. For example, in exclusive areas like Banana Island and Ikoyi, prices have risen dramatically, reflecting a robust real estate trend even amidst economic challenges.
Emeka Eleh, a notable Principal Partner at Ubosi Eleh + Co, encapsulates the situation, stating, “Investing in land is always a good decision, especially during economic downturns with high inflation. Land typically does not depreciate unless degraded.” Locations like Lekki and Ikeja GRA have also experienced notable increases, indicating robust demand in the Nigerian real estate market.
The phenomenon of ‘japa’ has caused a cyclical trend in Nigeria’s land market, where many are selling land to emigrate, only to seek to buy back land upon return from abroad. This trend has led to increasing land prices, particularly in urban areas driven by demand from those in the diaspora. Despite economic challenges, real estate, especially in prime locations like Lagos, remains a preferred investment, indicating resilience in Nigeria’s property sector.
Original Source: businessday.ng
