The biizzare cost of acquiring a landed property in the Capital city of Nigeria, Abuja is worrisome. People (politicians) have made a mess of the concept of value in determining the prices of properties in the nations capital.

Before we jump into conclusions that forces of demand and supply is the culprit, let me quickly add that, value is generally intrinsic in nature and not a function of subjective judgements.

I don't know whether to describe Abuja real estate as booming or about to plummet into chaos. Couple of days ago, I overheard somebody talking about an empty land measuring about 2,500 square metres in Maitama district acquired by someone (possibly a politician) for a whooping sum of 600, 000, 000.00 ( Six Hundred Million Naira ). Who in his right senses can justify that the price paid for this piece of land is commensurate to the value?. We are talking about $4, 000, 000.00 ( Four Million Dollars) here.

I remember back in 2007 when it was reported that an artist named Curtis Jackson popularly known by his stage name 50 Cent acquired a mansion in Connecticut from a legendary boxer Mike Tyson for $4,100,000, originally purchased by the latter for $2,700,000.
The property in question has 52 rooms and sits on 17 acres of land. It also has a pond, a pond house, 25 bathrooms, 20 bedrooms, a media room, movie theater, 2 basketball courts (indoor and outdoor), a club, a gym and everything you would wish to see in a tastefully furnished modern mansion. Now, if such luxurious property in America is worth a hiked sum of $4,100,000 in 2007, Why would a 2500 square metre of an ordinary piece of land in a developing country like Nigeria with all the troubles worth 600,000,000 Naira ?. An approximate equivalent of $4,000,000?.



50 Cent's Connecticut Mansion

According to this ugly trend. Buying a choice property in Maitama and Asokoro area of Abuja costs 8 times as much as you can get something better anywhere in the world. Although, I am happy for owners looking to make fortunes off their properties but what about buyers that are not politicians interested in buying into such properties ?. And if properties are sold for such stupid amount today, in 10 years the same piece of land would be worth a billion Naira without a commensurate increase in the income of ordinary Nigerians who are supposed to be the potential buyers.

Even though we may argue to be living in modern time, this trend is purely insulting to the subjective theory of value which see value in terms of an object being useful in satisfying human wants and limited in supply but not without recourse to the intrinsic/real value of such object. Paying for something you obviously want at a ridiculous price is abusive, senseless and retrogressive.

But the question of value poses itself when the most tangible object such as land become the subject of exchange. We live in a time when few corners of life remain untouched by the possibility or actuality of exchange.

To get a decent place to live in the city is almost not possible for low and middle income earners.

The outrageous amounts paid for these properties shows that we live in a broken society. Value has become worthless in our eyes, all we talk is price tag.

Read more on my blog and follow me http://www.instapy.com/2012/05/27/abuja-real-estate-madness-price-tag-and-no-value-tag-is-everything/

As long as Court (judges in this case) include that one should have a house in Maitama or Asokoro before meeting a bail condition, The Crazy price been paid by Nigerian politican will continue.

My dear, i stay in Abj and work in estate firm. To be sincere, “estate biz in dis twn, its going out of hand“. But, nobody is being forced to acquire dis property, they accept and paid for it, abi?? Which means they have d money,(our moni,they stole). Dnt worry, property will surely depriciate instead of appreciating in dis twn. Shebi, if d build houses, plaza, hotel etc and it stays empty for 8yrs, witout anyone asking for the price, not to talk of packing in. Wat will happen nxt?? I knw pple are packing to affordable places now. Those Asokoro & Maitama areas are for them ooo.