A single property transaction in some of Lagos’ most expensive neighbourhoods can now have a significant effect on the value assigned to surrounding land, with Ikoyi prices reaching about N6 million per square metre, according to Oak Holdings chief executive officer Olukayode Olusanya.
The figure represents a steep increase from the N1.8 million to N2 million per square metre that Olusanya said land in Ikoyi was selling for three to four years ago.
Olusanya raised concerns about the economic basis for such a dramatic rise while speaking on the latest Drinks & Mics episode, themed “Cars, Homes & Wahala: Why Is the Nigerian Dream So Expensive?”
Brandspur Brand News reports that, according to Olusanya, the pricing pattern is partly driven by individual sellers who place higher asking prices on properties in areas such as Ikoyi and Banana Island. When those properties eventually sell, the completed deals can become reference points for other owners.
That process can push the perceived value of nearby properties higher, creating a cycle in which new transactions help establish fresh market benchmarks.
For buyers, the consequence is straightforward: a higher benchmark for one property can influence the price expectations attached to others in the same neighbourhood. This can make entry into established high-value areas considerably more expensive, even where the new price is based largely on recent transactions.
Olusanya’s comments put the sharp rise in Ikoyi land prices within the wider debate over the cost of owning a home in Nigeria. The discussion has increasingly focused on the gap between property values and what prospective buyers can realistically afford.
The Ikoyi figure also illustrates how quickly prices in prime Lagos locations can change. Land that Olusanya said was valued at between N1.8 million and N2 million per square metre three to four years ago is now being placed at around N6 million per square metre.
His remarks suggest that understanding property prices in such markets requires looking beyond the amount attached to an individual listing and considering how actual sales can influence what sellers subsequently believe their properties are worth.
