{
  "id": 11900353,
  "title": "Ikoyi land prices hit N6 million per sqm, Oak Holdings CEO questions the economics",
  "url": "https://urgent.news/2026/10/04/ikoyi-land-prices-hit-n6-million-per-sqm-oak-holdings-ceo-questions",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-04T09:49:29.000Z",
  "source": {
    "name": "Nairametrics",
    "slug": "nairametrics",
    "url": "https://nairametrics.com/2026/10/04/ikoyi-land-prices-hit-n6-million-per-sqm-oak-holdings-ceo-questions-the-economics/"
  },
  "original_language": "en",
  "account": "In recent years, land prices in Ikoyi have skyrocketed to approximately N6 million per square metre, a sharp contrast from the N1.8 million to N2 million range three to four years ago, according to Olukayode Olusanya, CEO of Oak Holdings. The founder questioned the economic reasoning behind this surge during an episode of \"Drinks & Mics\" themed \"Cars, Homes & Wahala: Why Is the Nigerian Dream So Expensive?\" According to Olusanya, property prices in Banana Island and Ikoyi can surge when individual sellers raise their prices, and these completed transactions then set new market standards. He pointed out that land prices in Ikoyi have surged about threefold within the past three to four years, climbing from N1.8 million to N2 million per square metre to now N6 million per square metre. However, Olusanya argued that there is no solid scientific justification for this increase, as it can start with a single property owner deciding on a higher price for their land. He elaborated that this process begins in high-end areas like Banana Island, where a property owner may set the selling price and list the property for sale. Once a buyer agrees to pay the elevated price, the transaction becomes a benchmark for other sellers, thereby establishing a new market standard. A contrasting viewpoint came from Sanni Faruq, Lead Consultant at Senior Homes and Properties, who disagreed with Olusanya's stance. Faruq argued that the pricing of real estate is determined by economic principles, notably the law of demand. He emphasized that a transaction's price is already established by a willing buyer and seller reaching an agreement. Faruq highlighted that Lagos' real estate market is propelled by robust demand and limited supply, leading to persistent upward pressure on property prices. The rapid rise in land values in prime Lagos neighborhoods mirrors Lagos' status as the second-most expensive market for prime residential land in Africa. With US$1 million purchasing around 507 square metres, Lagos stands in stark contrast to Johannesburg, the most affordable city surveyed, where US$1 million buys about 4,537 square metres. Despite the soaring land prices, the State of Lagos Housing Market Report 2025 Vol. 3 revealed that high prices do not automatically mean better public infrastructure or services for residents. Areas like Ikoyi, Banana Island, Victoria Island, and Lekki Phase 1, which are considered high-end neighborhoods, still struggle with issues such as unreliable water supply, frequent power outages, inadequate drainage, and poor waste management. Residents often resort to private boreholes, water tankers, and diesel generators to supplement the gaps in public services, a situation that Olusanya described as a \"premium for dysfunction.\"",
  "summary": "There is no clear economic or scientific basis driving the sharp rise in real estate prices in Banana Island, according to Olukayode Olusanya. The post Ikoyi land prices hit N6 million per sqm, Oak Holdings CEO questions the economics appeared first on Nairametrics .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}