Imagine dropping $2 million on a "luxury" apartment in Lagos, only to find it's barely distinguishable from the one next door at half the price. Sounds absurd? Welcome to the world of Nigerian luxury real estate, where the term "luxury" can often mean less than you hope.
You see, Our team has spent the last three months touring the latest in Lagos' available luxury properties. And I've realised something shocking: almost everything I thought I knew about luxury was a lie.
Here's the truth: Real luxury isn't about price tags or amenities. It's about scarcity, desire, and brand power.
Let's break it down:
1. The Checklist Fallacy: Most Lagos Grade-A developers use a checklist (we know, because we created it) • Prime location? Check. • High-quality finishes? Check. • Fancy amenities? Check. • Million-dollar price tag? Double-check.
But there's a crucial detail everyone misses: true luxury defies checklists – and the Grade-A criteria were never supposed to be just about ticking boxes. Why? Because luxury is subjective and emotional. A checklist can't capture the feeling of exclusivity, the story behind a brand, or the personal connection a buyer feels with a property. It's like trying to define love with a questionnaire - it misses the intangible essence.
2. The Veblen Effect: Bernard Arnault, CEO of luxury powerhouse LVMH, says: "Money is just a consequence. If you do your job well, the profitability will come."
Real luxury operates on the Veblen principle: as price goes up, demand increases. The purchase is a signal for the consumer. The high price itself becomes a symbol of status and exclusivity, among those who want to showcase their wealth and taste. However, demands creating genuine scarcity, cultivating a strong brand identity, and delivering exceptional experiences that justify the premium.
3, The Brand is Everything: A Casio and a Rolex both tell time. So why does one command a value 100 times higher? Brand power.
Lagos developers focus on tangibles: bigger pools, fancier gyms. But they're missing the intangible magic of true luxury positioning, branding, and lifestyle.
4. Scarcity Sells: With over 700 "luxury" properties set to flood the Lagos market, exclusivity is dying. The truth is buyers are spoilt for choice. So make yourself scarce. Embrace the true meaning of exclusivity – and build to market something beyond the four walls already on offer.
The Future of African Luxury Real Estate
The real opportunity lies not in mimicking Western luxury, but in defining a uniquely African luxury ethos. Imagine properties that create rooted experiences and elevate our narrative.
Consider this: The market for ready to move in Luxury Homes in the Middle East and Africa Market Compound Annual Growth Rate (CAGR) of 8.3% for 2023 to 2030, outpacing global growth. This is a movement waiting to be defined.
The future of African luxury real estate houses and inspires people all along the value chain. It's about developing brands that resonate not just locally, but globally.