Impact of ‘Japa’ on Nigeria’s Land Cycle and Real Estate Market
The phenomenon of ‘japa’ in Nigeria has led many citizens to sell land to relocate abroad, only to later reinvest in their homeland. This cycle has boosted the land market significantly, as Nigerians abroad are remitting substantial funds back home. Consequently, the demand for urban land has surged, particularly in prime areas, reflecting both economic challenges at home and the resilience of land as an investment.
The phenomenon of ‘japa’, which refers to the flight of Nigerians abroad in search of better living conditions, has intensified due to severe economic challenges at home. Many individuals opt to sell their properties, primarily land, to finance their relocation, with some planning to never return. This trend is prevalent in various Nigerian communities, where selling land has become a common practice to afford the journey overseas.
Nigerians abroad are reportedly striving to earn enough to reinvest in their homeland by purchasing land, often acquiring properties back home that they had previously sold. This creates a continuous cycle where land becomes the focal point of both migration and economic activity. As Nigerians abroad engage in multiple jobs to secure financial stability, it generates a wave of remittances that significantly influences the economic landscape in Nigeria.
The property market in urban areas is notably active, driven by this cycle of buying and selling land. Real estate developers have shifted their focus towards the Diaspora community, highlighting the substantial investments made, such as the $250 million involved in the demolished WinHomes Estate in Lagos. This estate was razed to accommodate the construction of the Lagos-Calabar coastal highway, illustrating the high stakes involved in land transactions in Nigeria.
The demand for land continues to rise, particularly in prime locations, largely due to the robust financial capacity of Nigerians abroad amidst increasing inflation. However, whilst land prices in places like Banana Island soared dramatically, areas catering to low-income earners may not experience the same escalation. For instance, land prices in premium locations like Banana Island have surged from N1.4 million to between N2 million and N2.2 million per square meter over six months, evidencing the market’s volatility.
Expert insights underscore that land investment remains a preferred choice amidst economic fluctuations, as indicated by Emeka Eleh from Ubosi Eleh + Co. He noted, “Investing in land is always a good decision… unless land becomes degraded, it hardly depreciates.” Other notable areas such as Lekki and Ikeja have also reported significant price increases in their real estate markets, demonstrating a broader trend across various locations in Nigeria.
The phenomenon of ‘japa’ in Nigeria reveals a complex cycle of migration influenced by economic hardship, resulting in a significant increase in land transactions both domestically and abroad. As expatriates sell land to finance their relocation, they later return to invest in their homeland, contributing to a vibrant but volatile real estate market. This situation highlights the growing importance of remittances and the increasing demand for land, particularly in urban centers. The ongoing trend of rising land prices in prime locations signals a potential long-term impact on Nigeria’s economy. Real estate experts affirm that land investment remains a resilient option amid inflationary pressures, ensuring that land continues to be a vital asset for Nigerians, both at home and in the Diaspora.
Original Source: businessday.ng
