The incoming government in Nigeria has brought about a significant transient rush in rents and property values in the Federal capital, Abuja, Politics Nigeria reports.
Available reports indicate that the rent in some parts of Abuja has proliferated rapidly by over 35 per cent, despite the economic hardships in the country.
Abuja and Lagos residents have been complaining over an increased in the house rents in the last couple of weeks.
This rise in the rents more announced in choice locations, where new National Assembly members and associates of the incoming President elect are relocating with their family members especially in Maitama, Asokoro, Aso drive, katampe, Wuse 1,2,3,4, and 5.
Rent for a four-bedroom duplex now goes for N10 million to N12 million in Asokoro and Maitama; the same goes for Wuse ll. Meanwhile, the rent for a four-bedroom duplex in the Wuse axis ranges from N7 million to N10 million, depending on the location. These were areas where a four-bedroom duplex previously cost between N4 million and N6 million.
A businessman residing within the vicinity, Yusuf Abdullahi, has lamented over the recent development, saying he had to relocate his family to an Abuja suburb in Nasarawa State due to the increase in rent.
In his words:”The escalating cost of living, including the high cost of energy and transportation, in addition to the growing unemployment rate, had made it challenging for residents to cope with the steep rise in rent prices”.
Another resident, Idris Abdullahi, an estate agent interviewed by LEADERSHIP, said the rent for a duplex in highbrow areas such as Asokoro district now ranges between N10 million and N14 million, depending on the region within Asokoro, as opposed to the previous range of N8 million to N12 million.
Property consultant and managing director, JJ&J, Mr. Ezekiel Oke, emphasized that the Nigerian economy is potentially thriving on an import-based economy, and this has further weakened the value of the Naira to rebound the economy.
Quoting him,“Real estate developers, in most cases, rely on the dollar to perform several integral functions, and the volatile foreign exchange rates could only mean one thing for them.
“Inflation and the free fall of the naira against the Dollar is another factor that has impacted negatively on the cost of rent in Abuja and the country generally. Most of the building materials are imported and this has greatly impacted rent, especially in the high-end niche of the property market,” he concluded.
The situation is not very different in Lagos, where landlords in areas like Ikoyi, Victoria Island, and Lekki have increased rents by at least 30 percent.
