₦airaland Forum

LANDED PROPERTY HAS LITTLE REAL VALUE

After critically examining Nigeria’s economy and the value of the Naira, I have come to a troubling conclusion: what we often celebrate as “profit” in landed property may not be real profit at all.

In 2013, a friend bought a piece of land for ₦10 million.
Today, in 2026, that same land is valued at ₦70 million.

On the surface, that looks like a smart investment. But I laughed, not out of mockery, but out of economic reality.

Let’s do the math.

In 2013, the exchange rate was about ₦155 to $1.
₦10,000,000 ÷ 155 ≈ $64,516

In 2026, the exchange rate is about ₦1,345 to $1.
₦70,000,000 ÷ 1,345 ≈ $52,045

So, in real terms, he didn’t gain. . . he actually lost value.

I know some will say, “We don’t spend dollars.” But that misses the point. The cost of goods, services, and even building materials is largely influenced by exchange rates. The Naira does not exist in isolation.

Now consider this:

If my friend had converted his ₦10 million into dollars in 2013 and simply held it, he would still have about $64,516 today.

Converted back to Naira at today’s rate:
$64,516 × ₦1,345 ≈ ₦86.7 million

That is significantly higher than the ₦70 million value of the land.

So what exactly did he gain?

This is not to say landed property is useless. It has its advantages - stability, utility, and long-term security. But we must stop deceiving ourselves with inflated Naira figures that ignore economic reality.

Sometimes, what looks like growth is just currency depreciation in disguise.

What do you think?

#PurestPurity

Very smart thinking, most investors in realtor never reason. Maybe many hide this from prospective investors so as to cash out easily

ariesbull:
LANDED PROPERTY HAS LITTLE REAL VALUE

After critically examining Nigeria’s economy and the value of the Naira, I have come to a troubling conclusion: what we often celebrate as “profit” in landed property may not be real profit at all.

In 2013, a friend bought a piece of land for ₦10 million.
Today, in 2026, that same land is valued at ₦70 million.

On the surface, that looks like a smart investment. But I laughed, not out of mockery, but out of economic reality.

Let’s do the math.

In 2013, the exchange rate was about ₦155 to $1.
₦10,000,000 ÷ 155 ≈ $64,516

In 2026, the exchange rate is about ₦1,345 to $1.
₦70,000,000 ÷ 1,345 ≈ $52,045

So, in real terms, he didn’t gain. . . he actually lost value.

I know some will say, “We don’t spend dollars.” But that misses the point. The cost of goods, services, and even building materials is largely influenced by exchange rates. The Naira does not exist in isolation.

Now consider this:

If my friend had converted his ₦10 million into dollars in 2013 and simply held it, he would still have about $64,516 today.

Converted back to Naira at today’s rate:
$64,516 × ₦1,345 ≈ ₦86.7 million

That is significantly higher than the ₦70 million value of the land.

So what exactly did he gain?

This is not to say landed property is useless. It has its advantages - stability, utility, and long-term security. But we must stop deceiving ourselves with inflated Naira figures that ignore economic reality.

Sometimes, what looks like growth is just currency depreciation in disguise.

What do you think?

#PurestPurity

Front page worthy. I have also realized this.


Buying land is just a means of securing your unused funds for future use, it doesn't really appreciate as much as we believe if you factor in inflation in Nigeria. Maybe only lands in highbrow areas like Ikoyi, etc appreciate.

If you had kept that #10m in the bank or in your wardrobe since then, would it have been up to #70m today?
Stop deceiving yourself with this your economics, people are cashing out in real estate big time.

You don't read..or maybe you are reading and you don't comprehend...I am sorry, I am not the cause of your challenges

quadraheem:
If you had kept that #10m in the bank or in your wardrobe since then, would it have been up to #70m today?
Stop deceiving yourself with this your economics, people are cashing out in real estate big time.

Exactly!

franchasng:
Front page worthy. I have also realized this.


Buying land is just a means of securing your unused funds for future use, it doesn't really appreciate as much as we believe if you factor in inflation in Nigeria. Maybe only lands in highbrow areas like Ikoyi, etc appreciate.

ariesbull:
LANDED PROPERTY HAS LITTLE REAL VALUE

After critically examining Nigeria’s economy and the value of the Naira, I have come to a troubling conclusion: what we often celebrate as “profit” in landed property may not be real profit at all.

In 2013, a friend bought a piece of land for ₦10 million.
Today, in 2026, that same land is valued at ₦70 million.

On the surface, that looks like a smart investment. But I laughed, not out of mockery, but out of economic reality.

Let’s do the math.

In 2013, the exchange rate was about ₦155 to $1.
₦10,000,000 ÷ 155 ≈ $64,516

In 2026, the exchange rate is about ₦1,345 to $1.
₦70,000,000 ÷ 1,345 ≈ $52,045

So, in real terms, he didn’t gain. . . he actually lost value.

I know some will say, “We don’t spend dollars.” But that misses the point. The cost of goods, services, and even building materials is largely influenced by exchange rates. The Naira does not exist in isolation.

Now consider this:

If my friend had converted his ₦10 million into dollars in 2013 and simply held it, he would still have about $64,516 today.

Converted back to Naira at today’s rate:
$64,516 × ₦1,345 ≈ ₦86.7 million

That is significantly higher than the ₦70 million value of the land.

So what exactly did he gain?

This is not to say landed property is useless. It has its advantages - stability, utility, and long-term security. But we must stop deceiving ourselves with inflated Naira figures that ignore economic reality.

Sometimes, what looks like growth is just currency depreciation in disguise.

What do you think?

#PurestPurity

Una too get wahala for this life... Economics wahala is where you all uses Economic theories to Scatter economy.

Na why most economists are madmen always fighting themselves from classroom, to conference to academia to Board ....


I use my money buy land ... Hoha... e finish!

If u like use am buy Dollars and keep ... Na forex u dey do be that ... Hoha!

There are alot of considerations for investments beyond Mathematics Alone!