I watched a video by Tayo Aina on a $200k Jo Bourg property recently and it got me thinking. I never really thought about it till now, but are we really getting 'VALUE' for the properties we buy in Nigeria compared to South Africa for the same price?

Based on what I see, it seems not. South African houses have better overall architectural design, SA houses have better use of interior space, SA houses have bigger windows and more natural light, SA houses have better fit and finish (some of the quality of finishes we are asked to pay up to N80mln for is just shocking at times), SA houses have better greenery around and SA houses have better environmental ambiance.

Take a look at the pdf presentation in the link below comparing equivalently priced SA (Pretoria) house vs Nigeria (Osapa) house and let's have a conversation on what you think between the two. Both are circa N78mln.


https://drive.google.com/file/d/1w7Mr2ARjltF1qn6wpQI-Si8AHCEat622/view?usp=sharing


If you think SA offers a much better total value proposition, I wonder why Lekki is full of N100mln+ houses? Even as far as Osapa, Agungi, Ologolo, Ikate and Okota!! In Pinnock beach, a number of new contemporary properties go for as high as N200mln.

Definition of value differs, but FOR ME, I am really struggling to see the value proposition in our properties.

https://www.youtube.com/watch?v=gro2FuAkkgE

That's because 98% of the money (conservative estimate) used to buy mid-up market real estate in Nigeria is dirty money. Majority of the Lekki Ajah new money are internet fraudsters (90%), politicians/contractors, drug dealers, thieving employees cleaning out from their organisations, crooked 'businessmen', schemers, etc.

This money didn't originate from clean sources, so they are not subject to market forces in the real sense.

hedonistic:
That's because 98% of the money (conservative estimate) used to buy mid-up market real estate in Nigeria is dirty money. Majority of the Lekki Ajah new money are internet fraudsters (90%), politicians/contractors, drug dealers, thieving employees cleaning out from their organisations, crooked 'businessmen', schemers, etc.

This money didn't originate from clean sources, so they are not subject to market forces in the real sense.

I think you do have a valid point! A lot of the Nigerian economy is driven by corruption. Things like estates, high end cars and other luxury purchases are from one deal or the other, so it skews the impact of real market forces.

But that is just one factor though. It is also unfortunately the fact that because lagos is the only real cosmopolitan city we have, and is also the smallest, demand just outstrips supply.

Granted a lot of the demand is stolen money fueled, but there is still high legitimate demand as well.