Banana Island Billion Naira plots: Factors Behind the Astronomic Rise
In Highbrow Living’s May edition this year, we took a look at the upwardly moving pricing Banana Island plots continue to rise astronomically.
In that edition, we reported that land valuation in Banana Island at the moment currently stands at between N850,000/sqm -N950,000/sqm. This translates to about N850m to N950m for 1,000sqm. This is a huge rise from N40m it sold for in 1999, just some 22 years ago.
The reason for the astronomical rise within just a space of 22 years we adduced to one singular factor, demand-supply dynamics. Banana Island is reclaimed land from the vast water-body that surrounds the city. This means that portions available are limited and this has gradually dwindled over the years as demand increases among the rich and wealthy.
Riding on the back of this, the number of available plots up for sale has also witnessed a nosedive in recent times and so the law of demand and supply kicks in.
Another reason why plot owners have refused to put up their plots for sale is the potential for capital appreciation. Land continues to increase in valuation and as such every owner desires to sell off at the best rate possible so they watch and wait to see how high the tide can go at the shortest possible time for handsome reward on their investment.
Lastly, the option of ‘joint venture’ is something many landowners refuse to sell since they can easily go into partnership with a developer and share the proceeds
With the way it stands, the only way the prices of this exclusive section in the nation’s commercial capital will go is up. It remains to be seen just far this will be in the coming years.
