Luxury property's final frontier

IN THE LAGOS edition of Monopoly, a board game, the priciest neighbourhood up for grabs in Nigeria's commercial capital is Banana Island. The sand-filled annex in Ikoyi, a rich part of town, was created just two decades ago. It has since become some of Nigeria's hottest property. To enter the enclave, non-residents need special security codes that change every hour. There are curfews for domestic staff and rules on loitering. Banana Island was supposed to have more reliable power than the rest of Lagos, too, though in practice it has not quite worked out that way . No matter. These days one square metre of land goes for almost $2,000, about the same price as in Camps Bay, a fancy suburb of Cape Town in South Africa. Despite a cost-of-living crisis, plots are selling fast.
The skylines of west Africa's coastal cities are being reshaped by a surge in luxury property development. The changes offer an insight into how wealthy Africans are spending their money. They also show that the property sector is beginning to play a more important role in African economies, becoming a source of much-needed dollars.
Lagos is a particularly obvious case, perhaps because it sits on a small, densely populated peninsula where there is little choice but to build upwards. One property developer reckons that at least 600 flats that are worth $1m or more each are currently being built there, even though GDP per person is still just $800. Property contributed more than 16trn naira ($10bn) to Nigeria's GDP in 2024, or 5.8%. That is almost as much as crude oil and natural-gas extraction, which accounted for 17trn naira ($10.7bn), or 6.2%, a remarkable feat in an economy that is still largely dependent on oil.
But the trend is not limited to Nigeria. Arrivals at Ghana's main airport in Accra, the capital, are greeted by agents selling flats in at least half a dozen plush developments. Many units are sold before they are completed. Abidjan, the commercial centre of Ivory Coast, is being transformed by luxury developments, too. Land prices there have been rising by around 10% a year for more than a decade.
One reason for the building boom is the changing nature of Africa's diaspora. Larger and wealthier than in the past, its members are spending more time and money on the continent. Marieme Ngom, a Senegalese property developer, says those of her clients who want luxury options already have second homes in other countries, both in Africa and in the West. They value staying in style when they come to see family or do business. Their ranks have been swelled by industrialists from neighbouring countries in the Sahel. Insecurity and the fondness of Sahelian juntas for expropriation have prompted the rich in Mali, Niger and Burkina Faso to send their families to safer places like Ivory Coast or Senegal.
Members of the diaspora appreciate the opportunity to earn rent within the country from their flats when they are not using them, saving on the cost of transferring money in and out of the country. That is an especially lucrative option in cities like Dakar, Senegal's capital, where luxury hotels are thin on the ground. Others opt for build-to-rent blocks. Developers help them find tenants who can pay the high rents, which are often pegged to dollar values. It helps that property across the region is still relatively cheaper than in other places, promising higher returns as cities grow.
That growth is itself spurring the trend along. Abidjan gains 200,000 new residents a year; in Lagos, it is 1m. The vast majority are unlikely to see much benefit from the trend, as few investors are interested in building non-luxury homes. Affordable housing 'is very risky. You don't make lots of money so you don't attract foreign investors,' says Nicolas Moreau, a developer in Ivory Coast. Yet while new middle-class residents may not be able to afford the priciest flats, they enjoy mixed-use developments that combine luxury residences with malls and restaurants and serve as urban islands in the cities' traffic-snarled chaos. For investors, combining residential and commercial property in this way mitigates risk.
There are some concerns that the boom is a bubble. Many observers are puzzled by the sky-high valuations, particularly as the trend spreads to sleepier cities. Yet for now, a sufficient number of rich buyers and the continuing dearth of investment options will probably ensure it continues. Says Mr Moreau: 'Every year since 2010 I hear that this is a bubble, and this market will collapse. Every year I hear that, and it doesn't happen.'
Get 360° coverage—from daily headlines to 100 year archives.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Standard

3 hours ago

• Business Standard

India's parboiled, raw rice exports dip for 4th month in a row in May

The dip in export has come despite India lifting almost all the restrictions on overseas shipments from September 2024 New Delhi Listen to This Article India's exports of parboiled rice and raw rice, the two major components in non-basmati rice exports, have dropped for the fourth month running in May 2025 due to tepid demand from African nations who have cut down on purchases due to surplus stocks. The dip in export has come despite India lifting almost all the restrictions on overseas shipments from September 2024. The dip in non basmati rice exports come amid concerns over Israel-Iran conflict impacting basmati rice exports as well.

Time of India

10 hours ago

• Time of India

PM Modi launches ₹5,200 cr development projects in Bihar's siwan, ET Infra

Advt Advt By , ETInfra Join the community of 2M+ industry professionals. Subscribe to Newsletter to get latest insights & analysis in your inbox. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. Prime Minister Narendra Modi on Thursday inaugurated and laid the foundation stone for multiple development projects worth over ₹5 ,200 crore in Siwan, Bihar , aiming to boost infrastructure, connectivity, and socio-economic growth in the a public gathering, the Prime Minister said the projects would significantly contribute to Bihar's development and reaffirmed the state's role in shaping a prosperous India. He also highlighted that a record 25 crore people across the country have risen out of poverty in the past decade, with nearly 4 crore from Bihar the major announcements was the inauguration of the new Vaishali–Deoria railway line and the launch of a new train service on this route. The PM also flagged off the Patliputra–Gorakhpur Vande Bharat Express via Muzaffarpur and Bettiah, improving connectivity in North a significant boost to the 'Make in India' initiative, Modi flagged off the first export locomotive built at the Marhowra factory in Saran district, headed to the Republic of Guinea. He called it a matter of pride that an engine made in Bihar would now run on African PM inaugurated six sewage treatment plants (STPs) under the Namami Gange project worth over ₹1,800 crore and laid the foundation stone for additional water supply, sanitation, and STP projects worth over ₹3,000 crore in several towns across Bihar. These initiatives aim to improve water access and sanitation in urban and rural also laid the foundation stone for a 500 MWh Battery Energy Storage System across 15 grid substations, including in Siwan, Muzaffarpur, Motihari, and Bettiah. The system is expected to help stabilize power supply and reduce electricity costs for part of housing initiatives, Modi released the first instalment to over 53,600 beneficiaries of the Pradhan Mantri Awas Yojana–Urban (PMAY-U) and handed over keys to select families whose houses have been aim at previous governments, Modi accused them of neglect, lawlessness, and corruption, stating that Bihar had long suffered from poverty and backwardness due to misgovernance. He credited the current government and Chief Minister Nitish Kumar for pulling the state back on the path of development.'Bihar will play a major role in making India a global economic powerhouse,' Modi said, adding that the youth, especially from backward and marginalised communities, are now becoming key contributors to India's growth storyDignitaries including Bihar Governor Arif Mohammed Khan, Chief Minister Nitish Kumar, and Union Ministers Rajiv Ranjan Singh, Jitan Ram Manjhi, Giriraj Singh, Chirag Paswan, Nityanand Rai, and others were present at the Minister Narendra Modi on Thursday inaugurated and laid the foundation stone for multiple development projects worth over ₹5,200 crore in Siwan, Bihar, aiming to boost infrastructure, connectivity, and socio-economic growth in the a public gathering, the Prime Minister said the projects would significantly contribute to Bihar's development and reaffirmed the state's role in shaping a prosperous India. He also highlighted that a record 25 crore people across the country have risen out of poverty in the past decade, with nearly 4 crore from Bihar the major announcements was the inauguration of the new Vaishali–Deoria railway line and the launch of a new train service on this route. The PM also flagged off the Patliputra–Gorakhpur Vande Bharat Express via Muzaffarpur and Bettiah, improving connectivity in North a significant boost to the 'Make in India' initiative, Modi flagged off the first export locomotive built at the Marhowra factory in Saran district, headed to the Republic of Guinea. He called it a matter of pride that an engine made in Bihar would now run on African PM inaugurated six sewage treatment plants (STPs) under the Namami Gange project worth over ₹1,800 crore and laid the foundation stone for additional water supply, sanitation, and STP projects worth over ₹3,000 crore in several towns across Bihar. These initiatives aim to improve water access and sanitation in urban and rural also laid the foundation stone for a 500 MWh Battery Energy Storage System across 15 grid substations, including in Siwan, Muzaffarpur, Motihari, and Bettiah. The system is expected to help stabilize power supply and reduce electricity costs for part of housing initiatives, Modi released the first instalment to over 53,600 beneficiaries of the Pradhan Mantri Awas Yojana–Urban (PMAY-U) and handed over keys to select families whose houses have been aim at previous governments, Modi accused them of neglect, lawlessness, and corruption, stating that Bihar had long suffered from poverty and backwardness due to misgovernance. He credited the current government and Chief Minister Nitish Kumar for pulling the state back on the path of development.'Bihar will play a major role in making India a global economic powerhouse,' Modi said, adding that the youth, especially from backward and marginalised communities, are now becoming key contributors to India's growth storyDignitaries including Bihar Governor Arif Mohammed Khan, Chief Minister Nitish Kumar, and Union Ministers Rajiv Ranjan Singh, Jitan Ram Manjhi, Giriraj Singh, Chirag Paswan, Nityanand Rai, and others were present at the event.

India.com

13 hours ago

• India.com

Asia's richest village is located in THIS country, villagers hold Rs 7000 crore in bank deposits, their income comes from…, not in China, Korea or Japan, it is in…

Asia's richest village is located in THIS country, villagers hold Rs 7000 crore in bank deposits, their income comes from…, not in China, Korea or Japan, it is in… This village also has many bungalows, government and private schools, colleges, health centers, temples, and even lakes. The lifestyle and development here are better than many small towns in India. By Analiza Pathak Edited by Analiza Pathak Advertisement Asia's richest village is located in THIS country, villagers hold Rs 7000 crore in bank deposits, their income comes from..., not in China, Korea or Japan, it is in... Whenever we think of a village, a certain picture forms in our mind that includes mud houses, dusty roads, handpumps, bullock carts, and farmers working in the fields. We often imagine villages without electricity, far away from proper roads, with old men smoking hookah and women and children walking long distances to fetch water. But what if we told you that not all villages look like this anymore? Here we are talking about the richest village in Asia and you might be already guessing it is in China, Japan, or South Korea but no, it is right here in India. And it is not even in rich states like Delhi, Haryana, or Punjab but the village is in Gujarat and is located in the Bhuj district. Advertisement === Today, this village is nothing like the typical image we carry in our minds. It stands as a shining example of change and progress, breaking all the old ideas people have about what a village looks like. Let's find out what makes this village so special. The Village with Rs. 7000 crore in fixed deposits The village is called Madhapar, and it is known as Asia's richest village. Advertisement === With a population of around 32,000 people, Madhapar isn't just rich in culture it is rich in money too. The most surprising fact? This village has a whopping Rs. 7,000 crore in fixed deposits in various banks! Madhapar has around 20,000 houses, and most of the residents belong to the Patel community. What's even more impressive is the number of banks in this one village. You'll find branches of SBI, ICICI, HDFC, Punjab National Bank, Axis Bank, Union Bank, and more. In total, there are 15+ bank branches in this village alone. Many other banks across India, both government and private, are eager to open branches in Madhapar too. How Madhapar became the richest village in Asia Madhapar is known as Asia's richest village and a big reason behind this is its people living abroad. Around 65 per cent of the village's population are NRIs (Non-Resident Indians). These families send crores of rupees every year back to their hometown. Most of the money goes into local banks and post offices in Madhapar. Out of the 20,000 homes in the village, around 1,200 families live in foreign countries. Many of them are settled in African nations, where they have strong businesses, especially in construction. Others live in the U.S., U.K., Canada, Australia, and New Zealand. Even though they live abroad, they haven't forgotten their roots. They stay connected with the village and are constantly helping improve it in every way they can. According to a report in The Economic Times, Parulben Kara, head of the local district panchayat, said that these NRIs prefer keeping their savings in Madhapar's banks instead of foreign ones. They trust and value their village that much. Facilities that even cities envy The manager of a national bank branch in the village says that all this wealth from NRIs has made Madhapar rich. He shared that the village has clean water, proper roads, and excellent sanitation. Madhapar also has many bungalows, government and private schools, colleges, health centers, temples, and even lakes. The lifestyle and development here are better than many small towns in India. To stay connected with one another and promote their village's image abroad, people from Madhapar living in the U.K. even created a group called the Madhapar Village Association in London. It helps strengthen community ties and shares the pride of their home village with the world.