Are you aware that there are many land speculators who, for some time past, aquired countless acres of land especially in Ofada and Mowo areas in the early 2007s with the sole aim of selling at prohibitive prices today but still without success? If you looked carefully in the last 3 or 4 months, their expectations are begining to show some marked drop. Prices are begining to be adjusted to suit the reality of the time. Those speculators who still think that better days are still ahead should forget it.

I still read in this forum prices of property in the region of billions of naira. Are you unaware of the current global meltdown? Do you belong to the group that still believes Nigeria is immune to this phenomena?

Very soon you will experience what i am saying

i mean what i am saying

"Are you aware that there are many land speculators who, for some time past, aquired countless acres of land especially in Ofada and Mowo areas in the early 2007s with the sole aim of selling at prohibitive prices today but still without success? If you looked carefully in the last 3 or 4 months, their expectations are begining to show some marked drop. Prices are begining to be adjusted to suit the reality of the time. Those speculators who still think that better days are still ahead should forget it."

Yess,aware.But,who told you they are without success.Why not make a vissit to the office of one of the Devolopers along Mowe/Ofada and see for your self,you can make enquiries on the paformances of there client,or their office data record.
Reach Dad teaching says one should not be scare of risck,do you have land on this axis?i guess no,you better try and get one plot now.If you do you are investing in either your fulture,or your children fulture,dont be a Thomas.
"Prices are begining to be adjusted to suit the reality of the time. Those speculators who still think that better days are still ahead should forget it."
Remember,some people started the storck market at early 60s,they made millions before 2005.But,some saw it at early stage but saw it the way you see all this land speculators on Mowe/Ofada axis.When the early storcks investor are making money was when poeple like you are just buying the advertised public offer.
People like you late storcks investor crash with the storck market . Can you tell people how much you have lost now.A friend of my happen to be one of yhe early investor,he started since he was in secondary school. he lost some money but ,he is still gainning because he has rediversify after series of early gains from the storck.
call one of them now and have your own land ,dont waite for when it crash,get it now and waite for it to crash,if it crash,it can not even drop to be same amount you buy.

I think you are making some sense

Larry Okun,
You see,property bussines is not like other bussines,it need much capital to do it,but for the wise one,it can start by investing in the small scale land investment.You may not count it to be investment because you will not know you are investing.Most people buy land just to build where they can live.
Its only the rich people that buy land for investment,becuase they read the fulture,they never want to get broke,they want to make more money,they like to send their money an erand,want money to work for them.
We so many rich men in our society today that have a real estate portfolio,their major investment is in real estate and they have not stop.Its because they realise the value at which properties apreciate.e.g Dangote-he has so many high rise building and other properties in Lagos,Kaduna,Kano,Sokoto,Abuja & abroad.Femi Otedola also has so many many properties everywhere in the world to the extent that he has a property company-(Femi Otedola Properties Limited).Eleganzas properties also is very vissible everywhere in Lagos.e.t.c
So my brother,me and you dont have so much money to invest in property,but we can start somewhere,that is why all this so call land speculators go into this axis as a land brokers for low income earners that are not fearful of the risk to invest or build their own houses.
Do you know the cheapest land you can get with good register title e.g(C of O) within Lagos is 5 million.So do people like me that earn less than 100k per month buy land and build,mind there is no area is a bush that development can not get to.Where you are living presently,i want you to think back how was the place looks like 7 to 10 yrs ago?
Thnkx,let just reason together and allow people to read us and learn from our advise

But Real Estate is not bad yet in Nigeria ,price of property just stand still,people are not buying because of the current global market that is down.But,the property agents,developers and the landlords refuse to bring the prices down.
Somebody tell me what will happen next?
Can property market crash in Lagos true true?
I think it cant since we are not use to credit (mortgage)the way they do in abroad.People commonly use their personal money to buy here in Nigeria instead of mortgage,banks are not even given mortgage as they promise and advertise on our news papper.
Whats your opinion

A reasonable appreciation of real estate is expected. When it appreciates as rapidly as we've seen in the highbrow areas of Lagos, it's logical to expect a correction. The extent of this correction is as yet, unknown but I don't see how Lagos can escape it particularly in the market over N50-N60 million.

The correction has begun and is still happening in many parts of the world, I fail to see how Lagos will be exempt.  With regards to the issue of people paying cash for these properties, I  know a lot of people made money from the stock market and were able to make cash purchases but I'd still venture to say that majority of the buyers in the upscale market had some kind of credit financing or the other.

I think it's going to be interesting to see what happens in the next couple of months.

P.S. Don't know anything about Mowe/Ofada, my comments strictly relate to the Ikoyi/VI/Lekki axis.

You need to visit ofada/mowo youself to see what some speculators are calling estates. If you do not have the patience, I bet you, you would abort the trek or the rough terrain drive to access some of these strange estates. Some of "The so-called developers" do not even know what to put on the ground to earn the tag "estate/s", much less the fund needed to attract prospective landlords. As characteristic of most "nigerians", profit maximization is what matters

This explains why you see newly buldozed earth roads with a poorly constructed gate overhead labeled an estate. They are even running out of what to call their estates. This was similar to what some gsm service providers did in the late 90s when they would put one antena in Ijebu-Ode and announce that they have covered the whole of Ogun state You make a call, all you see or hear is "no service"

If you have diaorhia, allow it to run its course, waite until these prices become proportional to their value. Remember, you are buying land in Ogun state where land is in abundant supply!

siparaporo. I respectfully disagree with you that there is plenty of land in Ogin State and therefore it will always be cheap.

If u think like that, you will surely miss the next opportunity to benefit from Real Estate impemding appreciation in Mowe / Ofada in Ogun State.

You have to remember that Ojodu Berger and Isheri used to be considered bush and is still partly Ogun State and Lagos. But Today you can't find

land in a good part for less than 5 Million Naira.

You have Grant Properties there building houses for 25million plus after seeing that Lekki is not a profitable for their business as Ogun State.

So what exactly is your point. People are failing to Realize that with the population explosion from Lagos, We are beginning

to see that lagos is swallowing up Ogun State and of course Ogun State is benefitting.

For your own sake and other do not overlook and if u still don't believe me don;t dissuade others, or else they will regret.

Psychologically, some people cannot get over the fact that they are buying land in ogun state which to some is not considered to be sophisticated.

Remember that in developed nations it is not uncommon for people to live one or two states away and still commute to work everyday.

Lastly, Mowe /ofada is buy and hold there are only two communities that are livable as we speak.

In fact the rate of return in that axis is becoming to higher and will only continue to rise.

If you are waiting for when property market will crash in Nigeria, i am telling you it may not be so soon.
I think what you need to look at is the reality on the ground in our country, the fact remain that the demand for shelter in this country is still far above the supply, lots of people are yet to have their own house as a basic thing needed by humanity, not to even talk of the fact that Nigeria is not a country where the goverment have a solid plan in place towards the provision of cheap shelter for the populace. majority of the investment in this sector is still in the hand of private investors with little or even no government intervention.
So the best thing is for you to key in soon before it is too late,

'If you have diaorhia, allow it to run its course, waite until these prices become proportional to their value. Remember, you are buying land in Ogun state where land is in abundant supply!'

Oga Siparapolo,how many acres of land do you have in Mowe as cheap as it is now?
Have you bought land before ? You have not and will not buy and you will not allow people that want to buy buy.Have you vissited the place lately,i advise you to go to the axis and inspect the Master Golden Estate,the have been allocating plots to all their suscribers.They have done well,the developer is Sim Properties.Their estate gate house,fence are even better than some estate gate you use to see along Lekki Epe express road,not as you claimed "poorlly gated house"You need to vissit the Golden Heritage Estate at Mowe too and see yourself.Sherry View Estate.
You have forgorting what all this developers are doing are not for rich people people like you,they are trying to brake the property market for low income earners,to be able to build their own houses.

Properties will always be apreciating in Nigeria eccept if their is a disasters,God forbid.I mean like what happen in some places close to Florida in US.
Nigerians,we love properties,we want to own our houses ourselves.Some peolpe can even afford to have 3 to 20 houses,an estate to them alone in this country.Poeple dont sell the one they have to move to other ones.All this makes properties not to come down as we think.In abroad people are contemted with a house,when the children grow they move out from the parent,the parent sell the big house they might have bougth because of the numbers of family they have .Most of this farmilies go bact to like 2 Bedroom flat or 3 Bedroom flats,when they no the numbers of people have reduse.
Nigerians doesnt do dis,you find out most of this giant houses are empty .Some childrens sell or let them out,childrens go their ways,have their farmily start their life. African and Niger mentality.

Common sense shuold well advise you that what land speculators are parading as estates in these areas are not tenable at all. Imagine 50 estates promising autonomous hospitals; schools; stadia; independent water treatment plants eldorado roads etcin one border area. Are you saying we would soon have 50 or more hospitals; schools; stadia; independent water treatment plants eldorado roads in mowo/ofada? Comeon, agree with me that these are mere marketing public relation exercises. Nontheless, I and not saying that these "developments" would flop in no time, what I am saying is that the prices are out of this world considering the current global economic deflation

To add a little insult to injury, do you know that Fashola administration means well for lagosians. Do you think he would fold his hands and allow addicted land buyers aiming to make abnormal profit litter everywhere with plots without erecting suitable building in them? I am an insider, I bet you, sooner or later, state edicts are underway to compel land owners to either build or lose their plots within 2 years. He is presently experimenting with state acquired land and people with collapsed structures which could be extended to others very soon

Do not say I did not warn you! Remember how I warned about share-buying in time past. Dispose your land at a reasonable price now before had I known!

@@@@ post

u are completely writing rubbish!! i m afraid u writing rubbish seriously

this is nigeria we are talkin about not develop world

u have a situation whereby the price of fuel drops, still no impact on other byproducts

u see in nigeria, year after years, even with emm stablised dollar things cost more

in a country a bag of cement has rocketed

so plz this nigeria; hope u recognise the reason there are so much looters lookin to make a kill

those structure aint meant for commonman but for the looters and few good soul

hmmm

I thought land do appreciate

Hi All,
Interesting thread. A few comments however:
For me, I think land is valuable and will become more valuable over time. Reason is that demand will continue to outstrip supply for now, as most land in Lagos and Ogun remains unregulated, undeveloped and largely inaccessible. Some property will remain prime and will go for a premium. However, a market correction may be seen over time as most of these properties were priced based on perception in any case, and were not valued based on any kind of regulations, rather more of demand.
Unlike stocks, we are yet to feel the full impact of the economic depression on the property market. That may be because really it was only a small segment of the economy that was buying in the first place, and that segment is still largely intact for now. We've not had tumbling job cuts in Nigeria the way it has been in other parts of the world. Until that happens (and I pray it doesn't), we may not see much of a change for now.
My own prediction about the Mowe/Ofada axis is this: This area will continue to grow and expand, maybe even faster than the Lekki axis. The problem is Ogun State government is not really empowered to open up that area as per infrastructure development (roads and power), and private developers might be crippled by funds right now (jacked up interest rates by banks). But the Ogun State location is also a good thing because a you-must-build-now edict won't affect speculators in that area for now. As the housing crisis persists, there'll be more and more private efforts in developing those areas, rather than cute upscale estates that you see more of in the Lekki-Epe axis.
Whichever way, it's a win-win situation, but my advice is: buy if you have the cash but make sure you take all necessary precautions!
Peace.

Perhaps the most incisive contribution sofar. I salute you grammar and level of expression!
However, if I may add, I am not saying that a nail should be driven into the coffin of this border region. My fear is that Ogun State cannot afford to fold her hands and allow slum settlements along its access to Lagos metropolis. Besides, the fear both states now have is that the developers are only driven by what financial gains they are in for instead of what form of settlement these estates would result in. Like what happened in South Africa during white minority rule, selectional settlements of low income earners and people without wherewithal gave rise to "shack" towns bordering Cape Town and Jo'burg with attendant residencies of armed robbers and people with anti-social tendencies in these areas. You mean you are not afraid! Can the likes of Dangote;Isiak Rabiu Tinubu own a residential property here?

@Ajalenkoko
I gbadun your talk.
I dey always like to hear your opinion.You be correct guy.
But,I think whichever way you look at it both sides are making sense but investment in the are should be seen as a long term thing.I am looking at least another 7/8 years so it is not a get rich quick as the marketer are putting it.You have to shine your face.

Pappy2000

Its only in Nigeria that things are extremely topsy turvey in relation to buying properties more especially in Lagos. The truth is that the people to blame are the land speculators and the purchasers who are ready to jump into a high catchment area or percieved choice future area thereby driving the prices higher.

For example, look at the Lekki/Ajah Axis:

Most of the lands there are being owned by traditional families and prior to the forceful takeover of that place by the government in 1994, lands there were selling for a mere N5,000. Now property speculators, corporate bodies, well to do citizens of Nigeria and a host of others want a piece of the good life now. Places like Ikate Elegushi, Agungi, Ikota, Badore now command high price fees for lands that were bought for less than N1,000,000 3 years ago.

The latest mad rush now is to buy a land at Ogombo village, Sangotedo, langbassa etc. These lands costs less than N3million at most or better still N1million but by 2010, they will jump to N5MILLION and by 2012 it will cost N10million for a land there because people are moving there in droves and they see developing amenities that will attract them.

Some people rush to buy these lands so that they can make a profit off it in future and they are the land speculators who drive up the prices. Sometimes i think it is a good idea for people to just buy these lands for cheap and later sell when they have the time and resources to purchase them now but then again, its negative aspect is that they help drive up the prices in future. So it has it advantages and disadvantages.

The only problem i have seen from my own little experience in these matters is that land speculators who buy these lands from the traditional families for cheap end up buying wrong properties with very very defective titles and when they discover the problem, they are quick to put it on the market for another unsuspecting buyer to purchase and walk away with a very handsome profit.

If purchasers pay a closer look to the title and do their own searches, it is a better way to drive down the price if found defective or unattractive because the seller is eager to sell no matter what. I have seen cases where a land has been advertised for N5Million and upon prompt search and investigation, i found out it had a defective title, i was forced to renegotiate that land to N1.8million and helped the person get a good title with an extra N350,000 at alausa hereby saving almost N2.5million for the purchaser. Its another way to drive down the prices

Other situations crop up when the buyer is so stubborn and adamant that he/she must buy a property or land in a high brow area. There are so many mitigating reasons the prices will be unilaterally high and beyond his reach. What they are marketing to you is just branding and not substance it self and buyers should be very wary of it.

Finally the last reason prices jump up is basically due to the fault of estate agents. In law there is what is known as GAZUMPING

Gazumping is a trick estate agents use to over price the property when there is no reason to increase it. For example, you negotiate with the agent for a land going for N1Million naira, you do your statutory investigation and searches on the land and you have intention to buy it and promise to pay a deposit while your solicitor is handling all the paper work to transfer it to you, then you recieve a call from the agent that another person is interested in that same property and he is willing to pay N2million Naira for it and unless you increase your offer, the property wouldnt be transfered to you.

Panic sets in and you begin to run helter skelter to try and make sense of what just happened and you are ready to offer the agent another N500,000 just to make sure that the property is yours because you really like it and you have already spent money on the search.

The truth is, you have just fallen for one of the greatest real estate scams of the millineium. The aim is to push up the prices of that property and make sure you over value that property for the next victim. Usually they select a person to act as the new buyer who is bidding for the same property with you and he is ready to show that he can pay it.

The solution to this is very simple. YOU WALK AWAY! Forget that you have done the search and expended a little money. Be rest assurd the agent will call you very soon to re-explain things to you why the offer to that new person didnt go through and why your the favoured candidiate to buy it back at N1Million.

Agents live on the patronage of buyers and not the other way around. If they sense your too panicky, too enthusiastic, too forth coming, discussing money issues that favors them, then your are in for a big ride with them. Always involve your Property Lawyer when you want to buy a land because they are used to these tricks and will advise you accordingly. If you follow these simple rules, the property crash your expecting will happen. If you walk away, be rest assured that there are other lands out there, more cheaper, better agents looking to do business with you and more security.

You might feel aggrieved that you didnt get that choice area you wanted but remember where ever you end up getting will be the choice area for another person to admire. At least its your money, so spend it wisely and cheaply!

Cheers!

As the effect of the credit crunch trickles into our economy.
Land and property owners are about to witness an awakening.

The simple laws of demand and supply still works.
Despite land being a fixed resource.
The property boom has been fuelled by a cartel of speculators and
free money. I mean the proceeds of corruption.


If the corruption persists, this might create an artificial demand but it won't last
But remember as at today a barrel of crude oil was sold  for $45.
It means less money for the boys and girls in govt. to share.

Honestly, I believe it makes alot of sense to rent in Lagos or Abuja.
Culturally owning a house is still very symbolic in our psyche.

The present prices are not sustainable.

But i don't know how many people share my economic view about the real estate industry.

Of course it will crash.
Houses are more expensive in the Ikoyi axis of Lagos than in New York!!!

what explanations do we have for that? my own is for rent to crash as well and ill be glad
cos rent in Lagos na die!!

I am happy about the replies I am reading today. These high prices are not sustainable in an unproductive environment like Nigeria. People can afford to use ill-gotten wealth to purchase a property without morgage at any cost provided the location is right for them. This is not what obtains in advanced countries. Imagine some property on sale in this forum going for N1.2 billion. Is there any sanity in this?

Ajanlekoko,your message is very interesting,the best out of all the messages.

"it's a win-win situation, but my advice is: buy if you have the cash but make sure you take all necessary precautions!"

Goog advise,people like Dagote ,Otedola or Isiaku Rabiu will not come Mowe to buy land from the land speculators but they can aproach any state government to get any land that interest them at any time .What siparaporo dont no is that big men are not interestaed in buying the product of your factory but buy your factory itself. Remember they send money on erand ,they forsee the fulture of any market or product which an ordinary man will not see.If you go from Lagos to Ibadan,do you know how many hecters on the express road that may belong to any of our so call rich men in Nigeria.Because they must have seen the fulture of all this axis.
The presence of Obasanjo farm brings so much development to Ota,especially Sango.Why didnt Obasanjo locate his farm land in any area within Lagos State.At least some part of Lagos were still bushy then in 70s.
When the Redeem Church started the camp ,the area was bush,Mowe was just a village and land market value was between N20,000,N50,000 to N80,000 through the Omo Oniles.But see what the price is now,N2m to N5m depend on  the locations.My advise is buy land in if you have the money to buy and take some precautions,just as Ajanlekoko said.

@ poster,
my guy if you're waiting for property prices to crash in Naija, YOU MUST BE DREAMING!
the prices crashed in the US because they live a credit life.
Yes, everything they do is credit.
Buy expensive cars on credit
buy houses and estates on mortgage and hope to complete the payments within 20 years.
In Nigeria, its cash and carry. That's why you shouldnt expect things to nose dive. the best investment you can make is to buy land. It will always appreciate unless a disaster like erosion happens there.
I bought a plot of land last year and my brother wanted to buy the next one beside it the following day but the price jumped by 20%. we pleaded and begged but no way. he had to buy it at that price.
Today, that land is worth almost double the price in just a year cos houses are being built all over the area.
Once, i get some reasonable cash, i go start my own work and join the league of landlords.
I don tire to be tenant

Imagine some property on sale in this forum going for N1.2 billion. Is there any sanity in this?

This is a question for the market to answer.

“People can afford to use ill-gotten wealth to purchase a property without mortgage at any cost provided the location is right for them”

  This is part of the answer to your above question, whether ill-gotten or not, there is a lot of money circulating in Nigeria, whether these funds are circulating in the right manner / turned around properly, is another discussion. What applies is that, there is so much money chasing the properties that are available in locations where there are very high demands. The demands might be due to trend, hype, me-too syndrom etc
Of course, the global economic crunch might impact the Nigerian economy i.e. oil revenue and other by-falls, but as long as the population continues to increase and there is absence of adequate and well organised policies in place to deal with this development, I am afraid the issue of house prices in Nigeria will remain a problem. The impact of the global economic downturn on the Nigerian housing market will be minimal
Talk about ill-gotten wealth, even in advance countries, this prevails aswel, ever heard of the Mardoffs and Allen Stanfords of this world?
Further, the housing market is not regulated by the government in Nigeria as applied in developed countries.
The root cause of the current global recession goes back to the US and it’s sub-prime mortgages. Mortgages sold to people who from un-set was clear that they cannot afford such mortgages. This sub-prime mortgages were further securitised (Turned into negtotiable financial instruments traded on exchanges with these mortgages and colateral).
Like some people already mentioned, the mortgage culture is not that prominent in Nigeria. Most houses in Nigeria are cash and carry fortunately or unfortunately.

If anything I think the government should bring these prices down, this generation have obviously been priced out of Lagos. What percentage of labour between ages 24-45 earn enough to afford a decent accommodation let alone become a property owner? It's inevitable that corruption will not go away for a very long time when the current situation makes it almost impossible to acquire a property if you are not involved in any sharp-guy activities. Logically how possible is it for someone who earns a salary of say 60k/month to get on the property ladder when his expenses are at par or even exceeding his income. The catalyst that spurns greed, theft and deceit are factors like this. Everyone needs to acquire something before they die and the moment it starts to look gloomy they jump on the highway and rob to achieve this.I personally don't think the prices will fall for a very long time since the country and subsequently the sector is run by selfish lots who would rather have all they can get at the expense of the people. As long as majority of us continue with our "I better pass you" attitude the gap between the very rich and poor will never close-up.

Property prices will only crash when massive corruption stop in this country. We dont have an established mortgage system here so what happened elsehwere would not happen here. Admittedly the cash crunch might affect the market a bit but its just a bit. Its only when Govt officials stop stealing by the millions and the billions are we ever going to crash the prices. Afterall who buys a single propery for billions of naira? which bank or mortgage firm would give a billion or 2 to buy a house in southwest ikoyi or queens drive?

Deflation on the rise. The sam thing is happening in Europe and in the US.