1980: My dad got his first house for free for the single reason that he worked for the government. Back then lands were cheap because the economy was good, later on in the 1990s, my dad bought 4 more lands and because of his busy schedule his wife took it upon herself to develop those land. Collectively, the house and lands my dad got back then didn't cost him up to N5m. I remember he bought two lands at 250k each 1500sqm in the city centre, he bought 2 more I can't remember the exact price. My mother opened businesses with my dad support and she acquired two more lands, the structure on one of those land today is valued at N200m.
Then the government house was later sold to government workers for around 3m or so but today the same house is worth N40m.

WHY IS THE REAL ESTATE BUBBLE ABOUT TO BURST?

A Land that cost 500k in 1998, 25 years later costs N25m. It might sound like a good investment but here is the problem...

Since inception of democracy in Nigeria, the economy has be going one step forward and 4 steps backward and this has impoverished a lot of people.

Its 2023 and a standalone one bedroom flat in Abuja which cost N1.5m in 1999 is now N25m.
Considering the high level of unemployment and inflation, 80% of Nigerians can not afford a stand alone 1 bedroom flat bungalow which went from N1.5m in 1999 to 25m in 2023. How many civil servants can boost of even N10m savings in this economy? Unless they are criminals because the current state of affairs doesn't allow for prosperity.

Despite the high cost of real estate and property, 90% of Nigerians have been priced out, meaning they cannot afford a decent house for themselves.
Go on jumia you will see thousands upon thousands of properties for sale with no buyer. Most of those ads have been there for more than 3yrs.

So its either the real estate bubble burst i.e the price of property crash drastically so that sellers are forced to lower their prices because even now many property owners are in desperate need to sell their homes to enable them stay afloat in this economy but cannot find buyers.

Birdbyrde440:
1980: My dad got his first house for free for the single reason that he worked for the government. Back then lands were cheap because the economy was good, later on in the 1990s, my dad bought 4 more lands and because of his busy schedule his wife took it upon herself to develop those land. Collectively, the house and lands my dad got back then didn't cost him up to N5m. I remember he bought two lands at 250k each 1500sqm in the city centre, he bought 2 more I can't remember the exact price. My mother opened businesses with my dad support and she acquired two more lands, the structure on one of those land today is valued at N200m.
Then the government house was later sold to government workers for around 3m or so but today the same house is worth N40m.

WHY IS THE REAL ESTATE BUBBLE ABOUT TO BURST?

A Land that cost 500k in 1998, 25 years later costs N25m. It might sound like a good investment but here is the problem...

Since inception of democracy in Nigeria, the economy has be going one step forward and 4 steps backward and this has impoverished a lot of people.

Its 2023 and a standalone one bedroom flat in Abuja which cost N1.5m in 1999 is now N25m.
Considering the high level of unemployment and inflation, 80% of Nigerians can not afford a stand alone 1 bedroom flat bungalow which went from N1.5m in 1999 to 25m in 2023. How many civil servants can boost of even N10m savings in this economy? Unless they are criminals because the current state of affairs doesn't allow for prosperity.

Despite the high cost of real estate and property, 90% of Nigerians have been priced out, meaning they cannot afford a decent house for themselves.
Go on jumia you will see thousands upon thousands of properties for sale with no buyer. Most of those ads have been there for more than 3yrs.

So its either the real estate bubble burst i.e the price of property crash drastically so that sellers are forced to lower their prices because even now many property owners are in desperate need to sell their homes to enable them stay afloat in this economy but cannot find buyers.

I agree with you. Properties are over-priced. Present economy cannot sustain that.

Sevenworldpower:


I agree with you. Properties are over-priced. Present economy cannot sustain that.

And 90% of people can't even afford a small house in the city or to even build one in the most remote areas because of cost of transportation and building materials.
What do you think will happen next?
Is it a good idea to invest in property for future gains?

Birdbyrde440:


And 90% of people can't even afford a small house in the city or to even build one in the most remote areas because of cost of transportation and building materials.
What do you think will happen next?
Is it a good idea to invest in property for future gains?

Your parents were wise to invest in properties in 80s and 90s.
It is good but not in over-priced areas of the cities exception are business hubs like Dugbe in ibadan, Lagos/Mile 2/Education in Portharcourt, Ikeja/VI/Ikoyi in lagos. Prices of properties in those areas are not likely to crash. Rent may crash though.

When you are ready to sell your property is when you will know the 'true' value

MuchAdo:
When you are ready to sell your property is when you will know the 'true' value

Fixed!!

Good Day Everyone,the comments so far have been very interesting and I daresay I seem to agree that most properties in the country are overpriced
I am privileged to have seen how this system works,the property itself is not expensive but there are so many hangers on that actually cause the property to keep raising above the market price
For Example,my company just acquired properties around the Lekki Industrial Hub which comprises of Dangote Refinery,Lekki Sea port and Free Trade Zone
We bought the price at a very cost effective price and we were willing to sell it for very cheap.Then something happened,some realtors insisted on collecting 20% agency on every plot sold,we had no choice but to increase our price,now the agents are insisting we increase again their percentage and before you know it we will be forced to agree because they are the people who have a closer reach to the clients
For me,I am comfortable with my present price but I don't know how long we can maintain it
What I just described above is the biggest problem facing property owners,we have very cheap land with good titles but due to the pressure from our realtors and the economic realty in the country, properties will keep raising
Kindly visit our estate page for more details,quote this remarks and I will gladly give you a discount of 10% on all our Properties
Terms and conditions apply though

https://www.nairaland.com/7926530/christmas-end-year-promo-silvergate#127237817

Facts.

Most people who can afford to buy real estates at these choking prices would rather leave the country.

Wait until igbos start selling thier property on mass in areas they are facing issues

You go wait tire.

I'm in the construction industry and I can tell you that prices are not going down any soon even if 90℅ of the population starts earning below 10k in a month.

The prices of real estate in the country is not pegged to the earning power of the people.
It is more like a store of value for illicit wealth and a conduit pipe to pump them from hands to hands without raising much dust.

You would expect the prices to drop if demand drops right?
But that won't be the case.
The number of unsold and uninhabited houses in Lagos is almost as much as half of the inhabited and the prices are still soaring.

Until something happen to yahoo-yahoo and politics-fuelled theft, nothing would chook pin in the nyash of the Nigerian real estate bubble.

MuchAdo:
When you are ready to sell your property is when you will know the 'true' value

Very very true.
You might think its worth 200m but when you don't get a buyer you might end up selling it 50m to the only serious buyer you get

kettykin:
Wait until igbos start selling thier property on mass in areas they are facing issues

Is Kettykin capable of making a reasonable comment that is not predicated on his ethnicity?

What happened to all the grown-ups on Nairaland, I wonder

CrownOfClay724:
You go wait tire.

I'm in the construction industry and I can tell you that prices are not going down any soon even if 90℅ of the population starts earning below 10k in a month.

The prices of real estate in the country is not pegged to the earning power of the people.
It is more like a store of value for illicit wealth and a conduit pipe to pump them from hands to hands without raising much dust.

You would expect the prices to drop if demand drops right?
But that won't be the case.
The number of unsold and uninhabited houses in Lagos is almost as much as half of the inhabited and the prices are still soaring.

Until something happen to yahoo-yahoo and politics-fuelled theft, nothing would chook pin in the nyash of the Nigerian real estate bubble.

I agree with you, real estate is a store of value for rich people like corrupt politicians and other fraudsters but
What about normal people that invested in real estate 20yrs ago and can't find buyers?

Namaster:
Facts.

Most people who can afford to buy real estates at these choking prices would rather leave the country.

Exactly

kettykin:
Wait until igbos start selling thier property on mass in areas they are facing issues

They will not find buyers easily and maybe forced to sell for ridiculously low prices depending if the property is properly documented

I haven't heard and never in our history has the value of properties gone down.

We have no competitors in the market...no govt mass housing to help in reducing the prices of these properties and don't ever think this would ever happen.

You Sabi

CrownOfClay724:
You go wait tire.

I'm in the construction industry and I can tell you that prices are not going down any soon even if 90℅ of the population starts earning below 10k in a month.

The prices of real estate in the country is not pegged to the earning power of the people.
It is more like a store of value for illicit wealth and a conduit pipe to pump them from hands to hands without raising much dust.

You would expect the prices to drop if demand drops right?
But that won't be the case.
The number of unsold and uninhabited houses in Lagos is almost as much as half of the inhabited and the prices are still soaring.

Until something happen to yahoo-yahoo and politics-fuelled theft, nothing would chook pin in the nyash of the Nigerian real estate bubble.

Birdbyrde440:


I agree with you, real estate is a store of value for rich people like corrupt politicians and other fraudsters but
What about normal people that invested in real estate 20yrs ago and can't find buyers?

It is not always true.

I once had 8 lands and i sold them off and that doesn't mean that I am corrupt I remember also,how I bought a land for 4.8million and today,same land is going for 18million.

There are professional land speculators of which i am one of them.

Don't always generalised with the above statement.

Birdbyrde440:


I agree with you, real estate is a store of value for rich people like corrupt politicians and other fraudsters but
What about normal people that invested in real estate 20yrs ago and can't find buyers?

The good thing is that legit investors can actually key in and make their own kill.

So far your property is reasonably priced and in a good location, you will always find buyers.

You can't buy a land anywhere from Ajah to Bonny camp in the 90s' and not rake in x20 on it today... E no possible.
Except your pricing is unreasonable compared to the prevalent price.

You must be a joker. A real one. The property market will burst in a growing population like ours? I don't think you know what you're saying at all.

Maybe in the next 100 years then and not now

Until govt start creating affordable housing for the masses prices won't go down...those developers go just buy land 100k per plot put road drainage and fence begin sell am for 16 million naira per plot there u av the reason for the bubble..we should start focusing on creating high rise building and prevent these guys from colonising the few lands available that should be meant for farming.

happney65:
You must be a joker. A real one. The property market will burst in a growing population like ours? I don't think you know what you're saying at all.

Maybe in the next 100 years then and not now

You don't know anything about market cycles.

You are effectively saying that real estate value will continue to rise ad infinitum, if a one bedroom bungalow start cost 50m naira, who will buy?

When more 80% of Nigerians don't have up to 400k to their name, at a point the price of properties will start to drop

You might have a point 🤭🤔

CrownOfClay724:


The good thing is that legit investors can actually key in and make their own kill.

So far your property is reasonably priced and in a good location, you will always find buyers.

You can't buy a land anywhere from Ajah to Bonny camp in the 90s' and not rake in x20 on it today... E no possible.
Except your pricing is unreasonable compared to the prevalent price.

How many Nigerians can raise money for feeding?
110m people living on less than $1 daily,

The only people that can afford real estate now is politicians, entertainers and Yahoo Yahoo
These people are not up to 5% of the population. The remaining 95% are struggling to feed at the moment and majority of real estate is owned by the 95%.

Blitzking:
Until govt start creating affordable housing for the masses prices won't go down...those developers go just buy land 100k per plot but road drainage and fence begin sell am for 16 million naira per plot there u av the reason for the bubble..we should start focusing on creating high rise building and prevent these guys from colonising the few lands available that should be meant for farming.

Government will never do any of those things you mentioned.

Birdbyrde440:


How many Nigerians can raise money for feeding?
110m people living on less than $1 daily,

The only people that can afford real estate now is politicians, entertainers and Yahoo Yahoo
These people are not up to 5% of the population. The remaining 95% are struggling to feed at the moment and majority of real estate is owned by the 95%.

If you have property for sale, I can give you an agency's contact.
You will tell them your price and they will bring you a buyer.
You can leave the selling to them.

I don't know the statistics on people who can afford to buy properties. But I know people are still in the business of heavily buying properties... Just that I usually care less what divide they belong to .

Nice2023:



It is not always through.

I once had 8 lands and i sold them off and that doesn't mean that I was corrupt. I remember also,how I bought a land for 4.8million and today,same land is going for 18million.

There are professional land speculators of which i am of them.

Don't always generalised with the above statement.

If you don't mind me asking: how do you rate the purchasing power of your 4.8 million Naira (then) against your 18 million Naira (now)?

"If you're not part of the solution, you're part of the problem, but the perpetual human predicament is that the answer soon poses its own problems." ~ Sidney J Harris

Birdbyrde440:


You don't know anything about market cycles.

You are effectively saying that real estate value will continue to rise ad infinitum, if a one bedroom bungalow start cost 50m naira, who will buy?

When more 80% of Nigerians don't have up to 400k to their name, at a point the price of properties will start to drop

Is it everyone that now buys?cos I don't understand. Buying is for the Rich,most people go build theirs from the scratch

Those who have the money to buy will always buy. Isn't it? As long as it is a good location, people will definitely buy and if it's worth it. Except if it's overpriced is when it won't be bought

QED!

Birdbyrde440:

So its either the real estate bubble burst i.e the price of property crash drastically so that sellers are forced to lower their prices because even now many property owners are in desperate need to sell their homes to enable them stay afloat in this economy but cannot find buyers.

I think you should try to understand the market before predicting its future.
There is no bubble anywhere.
Nigeria's real estate are mostly financed by savings/investment and not loans.
Hence property owners can hold on to it for decades unless in the case of an emergency.

ivolt:

I think you should try to understand the market before predicting its future.
There is no bubble anywhere.
Nigeria's real estate are mostly financed by savings/investment and not loans.
Hence property owners can hold on to it for decades unless in the case of an emergency.

The nation is in a state of emergency.
People are trying to sell their homes but no one is buying.

happney65:


Is it everyone that now buys?cos I don't understand. Buying is for the Rich,most people go build theirs from the scratch

Those who have the money to buy will always buy. Isn't it? As long as it is a good location, people will definitely buy and if it's worth it. Except if it's overpriced is when it won't be bought

QED!

We are talking about Nigeria now.
Population of 200m people.
110m living on less than $1 daily
90% can't boost of 400k in their accounts.
Less than 10% can afford to buy property above N5m.

Due to hardship, many families are trying to sell their properties with price range from 1m-900m naira.

The question is who will buy those properties?
Is it the politicians and entertainers?

110m people are living from hand to mouth.

Birdbyrde440:


The nation is in a state of emergency.
People are trying to sell their homes but no one is buying.

A very tiny minority are trying to sell their homes because of exigencies.
Selling home is even a fringe practise over here unless you are a developer.
An average person doesn't acquire a home with the aim of selling it in the future, that
is even a common prayer point against such.

A super majority of Nigerian are financed by personal savings/investments, owners have nothing to fear.

As I alluded before, you seem like a total stranger to the Nigeria's real estate sector.
Your textbook knowledge is completely useless here.

If you still don't agree, tell exactly when the bubble will burst, 1 year, 10 year and what effect
will that have on average home owner who is thankful for just moving into their own house after "serving" a landlord
for several years.