Recent comments by former Zenith Bank Chairman, Jim Ovia, suggesting that real estate delivers better returns than banking have sparked widespread debate among Nigerians, with investment experts weighing in on the merits of property ownership versus traditional savings.
The discussion gained momentum on social media after Ovia’s remarks, with supporters arguing that real estate offers superior long-term returns, while others maintained that banking investments provide greater security and liquidity.
Analysts, however, say rising inflation has significantly eroded the purchasing power of savings, prompting many Nigerians to seek alternative investment options capable of preserving and growing wealth.
Speaking on the issue, real estate and investment expert Joseph Momoh said the comparison between real estate and banking depends largely on investment objectives and economic conditions.
According to him, inflation remains one of the biggest threats to wealth preservation, making property investment increasingly attractive to investors.
“If you buy land in a strategic location and carry out proper due diligence, its value could appreciate significantly over five to ten years, often surpassing returns from traditional savings products,” he said.
Momoh explained that while savings accounts and fixed deposits generally provide modest annual returns, property investments can generate substantial gains through both appreciation and rental income.
He noted that investors who acquire residential properties and lease them out often recover their initial investment over time while continuing to earn income from the asset.
Also commenting, realtor Bawa Musa described real estate as one of the most effective wealth-building tools available to Nigerians.
He argued that money kept in savings accounts is typically deployed by financial institutions for lending and other investments, while property owners retain the full benefit of capital appreciation.
“When you invest in real estate, the increase in value belongs entirely to you. That is why many investors see property as a stronger pathway to long-term wealth creation,” he said.
Musa further noted that investing in property reduces the temptation to spend funds that might otherwise remain accessible in savings accounts.
Investment analyst Mohammed Mustapha also highlighted the multiple income streams available through real estate investments, including rental earnings, capital appreciation and protection against inflation.
He said property investments have historically served as a hedge against economic uncertainty, particularly during periods of inflation and external economic shocks.
“Unlike ordinary savings accounts, a well-selected property can appreciate in value, generate rental income and help preserve wealth during periods of economic instability,” Mustapha explained.
However, he cautioned against the assumption that every property automatically yields high returns.
According to him, the success of a real estate investment depends on critical factors such as location, infrastructure, security, demand and overall market conditions.
“Some properties appreciate rapidly, while others remain stagnant for years. Asset selection is key, and investors must conduct thorough research before committing funds,” he said.
The experts agreed that although real estate can outperform traditional banking investments over the long term, investors must carefully evaluate opportunities and understand the risks associated with property ownership before making investment decisions.
