The trend of ‘japa’ in Nigeria sees citizens emigrating in search of better conditions, often selling land to fund their relocation. This dynamic creates a cycle where individuals later seek to purchase land again, particularly through remittances from Nigerians abroad. The land market, especially in urban areas, has become active, with rising prices driven by demand and inflation. Experts suggest investing in land remains a wise choice during economic downturns.
In Nigeria, a significant number of citizens have opted to emigrate (a phenomenon referred to as “japa”) in search of better living conditions. Many individuals have resorted to selling real estate, particularly land, as a means to finance their relocation. This trend is prevalent among families in numerous towns and villages, wherein they divest from properties to facilitate their extended journey abroad.
Nigerians residing overseas, whether in Canada, the United States, Europe, or beyond, are often engaged in multiple jobs to generate income, which they subsequently use to purchase land back in Nigeria. This pattern illustrates a continuous cycle wherein individuals sell their land to relocate and later strive to acquire land again upon returning or from abroad.
This dynamic has led to an active land market, particularly in urban areas, where remittances from expatriates significantly contribute to Nigeria’s economic growth. Real estate developers have increasingly targeted Nigerians in the diaspora, highlighted by incidents such as the demolition of WinHomes Estate in Lagos, where expatriates reportedly invested $250 million.
The demolition, carried out by the federal government to make way for the Lagos-Calabar coastal highway, emphasizes the growth and importance of land markets. Experts maintain that land prices remain on the rise, driven by diaspora demand and inflation pressures, particularly in sought-after locales such as Lagos.
Indeed, land prices in prestigious areas like Banana Island have surged dramatically within a short span. For instance, prices increased from N1.4 million to between N2 million and N2.2 million per square meter. Similarly, land costs have escalated in Old Ikoyi and Victoria Island, reflecting the ongoing trend in prime real estate locations amid economic volatility.
Emeka Eleh, a partner at Ubosi Eleh & Co., affirmed that investing in land continues to be a prudent strategy during economic downturns. He stated, “Investing in land is always a good decision and when there is a downturn in the economy such as we have now with a high inflationary trend, land is the way to go to hedge your fund against inflation,” emphasizing land’s resilience to depreciation. Other areas such as Lekki, Ikeja GRA, and Ogudu GRA also witness substantial price increases, indicating a broader pattern across Nigeria’s real estate landscape.
The phenomenon of ‘japa’ among Nigerians illustrates the dire economic conditions prompting many to seek better opportunities abroad. This cycle of selling land to finance relocation, only to later seek to reinvest in land upon returning, has invigorated the land market, particularly in urban centers like Lagos. High demand and inflation continue to drive land prices upward, making real estate a favored investment even amid economic challenges.
Original Source: businessday.ng
