Even adjusted for dollar valuations, there has been, at least, an average of 40- 45 percent increases in the price of land in Banana Island and most of high density old Ikoyi. The twin-factors of inflation and the local currency devaluation have played a significant part in creating these price hikes. Now, do you think inflation and naira devaluation are the only culprits of this dramatic rise in prices? With average prices now at N350,000/sqm to N400,000/sqm from pre-Covid-19 prices in 2020 of about N200,000/sqm, buyers are definitely feeling the pressure here, especially as most mid-size developers scramble to acquire plots for new mini-size/cluster estates and mid-size homes projects. Lekki Phase 1 is not too far off in appreciation because, traditionally, as ‘a not-so-distant-cousin’ to Ikoyi as an up-market location, it benefits from the growth across the bridge. One would expect that land prices would make a significant positive shift there too. Lekki is today referred to as the fastest developing real estate corridor. This too represents over 100 percent increase in two years for old Ikoyi. Within old Ikoyi and environs, the prices went from approximately N380,000/sqm and N450,000/sqm, depending on the location within Ikoyi, to a post-Covid 2022 average pricing of approximately N800,000/sqm and N950,000/sqm for the higher density roads. The interesting thing is that we saw a dramatic demand for land all across Ikoyi, especially Banana Island, during the pandemic, starting from around April 2020 to the dizzying heights the prices have taken by the middle of 2022. We have definitely seen an astronomical rise in the average asking prices for land all across the upper quartile of the Lagos market, especially in Banana Island which, pre-Covid-19 pandemic, was just under N600,000 per square meter (sqm) but now inching towards an average asking price of N1.300,000/sqm, which represents over 100 percent increase. What is the market situation in the last 6-12 months in the up-market locations, especially Banana Island and old Ikoyi?

Inflation and naira devaluation have pushed up property, especially land, values to unimaginable levels. She also speaks on luxury property rents and the opportunities the ‘dollar to naira rental transition’ has created for investors in that segment of the market.

In this interview with CHUKA UROKO, Property Editor, she offers insights into how unfavourable macro-economic condition in Nigeria, bordering mainly on galloping inflation and naira devaluation, has affected property values, particularly land, in the highbrow locations in Lagos. UDO OKONJO, a lawyer and a high-end real estate market advisor and investor, is the CEO of Fine and Country West Africa.

The highbrow