Founder of Zenith Bank, Jim Ovia, is charting a new course in business following his retirement from banking, turning his attention to Nigeria’s booming luxury real estate sector.

Ovia, who established Zenith Bank 35 years ago and transformed it into one of Nigeria’s leading financial institutions, recently announced his exit as Chairman of the bank. In his next major venture, he is investing heavily in high-end residential developments, expressing confidence that luxury real estate now offers stronger returns than traditional banking.

Through his company, Quantum Luxury Properties, Ovia is developing two landmark projects in Lagos. The first, Metropolitan Towers, is a 26-storey luxury residential complex where each apartment is expected to sell for approximately $1.85 million. The second, Quantum Luxury Towers, will feature 44 premium apartments with prices starting from $2.8 million per unit.

Ovia’s interest in real estate is not new. More than two decades ago, he ventured into the sector with the development of premium event centres in Victoria Island. The success of The Civic Centre on Ozumba Mbadiwe Road laid the foundation for what has now become a significant property investment portfolio.

The Lagos luxury property market remains one of Africa’s most attractive investment destinations. According to Estate Intel, approximately 135 homes in Lagos are currently valued at over $1 million each, with projections indicating that nearly 1,400 additional luxury homes will enter the market by 2029.

Among the notable entrants into the sector is the Akwa Ibom State Government, which is developing Ibom Towers, an 18-storey luxury residential project in Victoria Island. The development will comprise 32 apartments, including one-bedroom, two-bedroom, three-bedroom units and penthouses with service quarters.

Conceived as an income-generating venture, the project forms part of Governor Umo Eno’s strategy to diversify the state’s revenue base beyond federal allocations. Construction commenced in 2024 and is expected to be completed in 2027.

At prevailing market rates, the state government projects gross earnings exceeding $70 million (about N105 billion) from the development. Although the initial project cost was estimated at N50 billion, rising construction expenses could push the final figure significantly higher. Even so, analysts believe the project could generate substantial profits capable of supporting various social and economic programmes within the state.

The investment aligns with broader efforts by the Akwa Ibom administration to strengthen internally generated revenue, which has reportedly increased from about N40 billion in 2023 to nearly N100 billion annually following reforms such as the implementation of the Treasury Single Account (TSA).

Demand for luxury properties in Lagos continues to grow, driven by wealthy Nigerians at home and abroad who are leveraging the naira’s weakness to acquire premium assets. Prime locations such as Ikoyi, Victoria Island, Banana Island and Eko Atlantic remain the preferred destinations for luxury developments due to strong demand, limited land availability and impressive capital appreciation.

Major players in the sector include Dayspring Property Development, owned by Folorunsho Alakija, Palton Morgan Holdings, Oak Homes, Sujimoto Construction, Haven Homes, Primewater View, Cadwell Limited and HFP Engineering.

Industry estimates place the value of Nigeria’s luxury real estate market at approximately $7.5 billion, with annual growth rates ranging between six and eight percent. Rental yields average about 5.5 percent annually, while property values in premium districts have recorded yearly appreciation rates of between 20 and 60 percent.

As investors increasingly seek alternatives to traditional sectors, luxury real estate is emerging as one of Nigeria’s most attractive wealth-creation vehicles. With Akwa Ibom becoming the first state government to venture into the Lagos luxury housing market, observers believe other states may soon follow its example, much like they did after the success of Ibom Air.