₦airaland Forum

I didnt say it has had no impact. Dont read me wrong.

I said lagos has always had this disparity in lifestyle. You'll find grinding poverty in lagos and also the stupendously rich. Both living not too far from one another. This preceded oil money.

Lagos has always been a center of trade. Its a seaport for crying out loud.

The Europeans liked the area- that's why they gave so many places there, British and Portuguese names. Even the Bini were struggling for the place before the British arrived. The people are accomodating- which is more than can be said for most other parts of Nigeria.

Returning Brazilian slaves also made lagos their home.

If oil money dries up many people will return to their states of origin and leave Lagos decongested. It doesnt mean the original inhabitants of Lagos will also leave.

its like saying Kaduna wont function without oil money, imo.

I didn't say Lagos will not function without oil money. I am saying the crazy trend of surreal real estate prices is not sustainable. Of course, there will always be rich and poor people in any society, however, some drastic changes in the economy of any place can even force a change in the habits of the rich (not just the poor).

[quote author=Iyke-D link=topic=160928.msg2684633#msg2684633 date=1219263573]I didn't say Lagos will not function without oil money. I am saying the crazy trend of surreal real estate prices is not sustainable. Of course, there will always be rich and poor people in any society, however, some drastic changes in the economy of any place can even force a change in the habits of the rich (not just the poor).[/quote]That's what I've been telling people for some time now. The fake prices in Lagos cannot sustain themselves. High inflation rate (a bad thing) has been confounded with high property value (a good thing) - but we're not talking value here, but price! In a society known for low productivity, the inflation rate will surely reduce the purchasing power of buyers. When the rate of increase in the price (not the value) of real estate outstrips the rate of inflation four to one (by some accounts)  , and the purchasing power of buyers decrease, e go rish time wey the gju man way buy house for one billion naira go wait till Donald Trump come buy am for two billion naira - awon oloshi  .

The bubble will definitely pop soonest. There is no way you can sustain the trend.

A glut(oversupply of properties) will actually cause the bubble to burst.

It is simple. The reason for these prices is that the only acceptable area for High networth individauls in all of Lagos remains Ikoyi, VI and more recently Lekki.The demand for properties in these areas far outweighs supply.

Whats happening though is that, the trend would encourage massive investments in quality,high end, highrise real estate. Many of these properties would be highrise in order for the investors to cover the costs for their investmenst on the expensive plots of Land they purchased.
In two or three years time when most of these properties are ready, the supply would outpace demand and prices would begin to fall.

Add that to the fact that companies would start reviewing the cost of doing business in Lagos and begin to seek cheaper alternatives.

However, In my true opinion the craze in prices as with many other things Nigerian is fueled by a combination of greed and pomposity, really!

PapaBrowne:
The bubble will definitely pop soonest. There is no way you can sustain the trend.

A glut(oversupply of properties) will actually cause the bubble to burst.

It is simple. The reason for these prices is that the only acceptable area for High networth individauls in all of Lagos remains Ikoyi, VI and more recently Lekki.The demand for properties in these areas far outweighs supply.

Whats happening though is that, the trend would encourage massive investments in quality,high end, highrise real estate. Many of these properties would be highrise in order for the investors to cover the costs for their investmenst on the expensive plots of Land they purchased.
In two or three years time when most of these properties are ready, the supply would outpace demand and prices would begin to fall.

Add that to the fact that companies would start reviewing the cost of doing business in Lagos and begin to seek cheaper alternatives.

However, In my true opinion the craze in prices as with many other things Nigerian is fueled by a combination of greed and pomposity, really!

Igbam! That is surely contributing to the madness. Na dem go taya! I'm investing my $1 million dollars outside Lagos.

The thing is, Directly / Indirectly, Oil Money definitely has a lot to play

one of the people i live with works in an Oil Trading company.

The bulk of monies in the Banks come from the Oil

They are stupendously wealthy,

Be it Oil Trading, Servicing, e.t.c

In my true opinion the craze in prices as with many other things Nigerian is fueled by a combination of greed and pomposity, really!

this is very true.

There are too many housing estates in lekki, people have invested so much in wasting the land

yet no one is living there.

Until Nigerians start thinking creatively, their Greed-think will not get anybody far.

Gamine:
The thing is, Directly / Indirectly, Oil Money definitely has a lot to play

one of the people i live with works in an Oil Trading company.

The bulk of monies in the Banks come from the Oil

it's still all about oil money

Gamine:
The thing is, Directly / Indirectly, Oil Money definitely has a lot to play

one of the people i live with works in an Oil Trading company.

The bulk of monies in the Banks come from the Oil

They are stupendously wealthy,

Be it Oil Trading, Servicing, e.t.c

In my true opinion the craze in prices as with many other things Nigerian is fueled by a combination of greed and pomposity, really!

this is very true.

There are too many housing estates in lekki, people have invested so much in wasting the land

yet no one is living there.

Until Nigerians start thinking creatively, their Greed-think will not get anybody far.

Well put Gamine! Well put!

The truth is that 97.5% of Nigerians cannot think creatively, and 67% of those that can think creatively have checked out!

RichyBlacK:
67% of those that can think creatively have checked out!

for where?

Nigerians in Diaspora are[b] not[/b] more intelligent than Nigerians at home, abeg.

They are only better at complaining, nothing more.

Imagine, if the 419 scammers in Nigeria turned their brains to making money in progressive ways.

I got home on Thursday to a letter from the management

They are increasing Diesel/Oil supply!

which leads to an increase in the service charge!!!

Which leads to an increase in. . . .and decrease in. . . .

our Dish is also bad!! the LNB blew up, thanks so much PHCN

dang!

Im so outta this country!

PapaBrowne:
The bubble will definitely pop soonest. There is no way you can sustain the trend.

A glut(oversupply of properties) will actually cause the bubble to burst.

It is simple. The reason for these prices is that the only acceptable area for High networth individauls in all of Lagos remains Ikoyi, VI and more recently Lekki.The demand for properties in these areas far outweighs supply.

Whats happening though is that, the trend would encourage massive investments in quality,high end, highrise real estate. Many of these properties would be highrise in order for the investors to cover the costs for their investmenst on the expensive plots of Land they purchased.
In two or three years time when most of these properties are ready, the supply would outpace demand and prices would begin to fall.

Add that to the fact that companies would start reviewing the cost of doing business in Lagos and begin to seek cheaper alternatives.

However, In my true opinion the craze in prices as with many other things Nigerian is fueled by a combination of greed and pomposity, really!

I dont see no bubble bursting.

You seem to underestimate the cash flowing around in
Nigeria

What "CASH" is flowing in Nigeria? How many industries are running? Are all your friends gainfully employed? I mean gainfully, not recharge card dealerships and "Oil and Gas".

A Luxury flat in old Ikoyi is 130 million naira. And the cash is flowing abi? Rent is $80,000 and we are clapping for cash eh?

If economies that are running a tight ship are weeping, when it will shelle here na gnashing of teeth it will be. The mortgage self na die. "23% all-in-all" whatever that means.

A tastefully finished middle income earner's house should not be more than 6 million Naira, but when you add the price of land assuming he wants half plot in Magodo GRA, it becomes 20 million naira.

At times, I do wonder now (and I posed that question to a friend) if colonialism is a detriment to the future of Africa or a blessing. In the olden days, it was rare, almost unheard of to see a homeless person in the village. The villagers would rally around to build a thatched house for that person. Our forefathers walked with their barefoot, rode their bike and lived a simple life. Now, it's all about me, me, me. 130 million Naira for a house in Lekki? How many people can afford that?

Ndipe:
At times, I do wonder now (and I posed that question to a friend) if colonialism is a detriment to the future of Africa or a blessing. In the olden days, it was rare, almost unheard of to see a homeless person in the village. The villagers would rally around to build a thatched house for that person. Our forefathers walked with their barefoot, rode their bike and lived a simple life. Now, it's all about me, me, me. 130 million Naira for a house in Lekki? How many people can afford that?

God knows how much these houses will cost now, in 2016