Some property experts have, however, argued that rents in Abuja and its environs have increased by more than 35 percent, primarily due to the high cost of building materials and the process of acquiring land.
The increase in rent is not unexpected given the usual demand for high-end housing in these areas. However, the transition to a new government has further amplified the situation, leading to a surge in rents and property values. Some tenants have expressed their struggles to pay their annual rent due to the recent increase, claiming that landlords are increasing rent at their own discretion without considering the tenants’ circumstances.
A manager at Flourish Estate Limited, Adewale Isaac, cited costs of land and building materials as major factors responsible for the recent rent hike. “Firstly, the insecurity being experienced across the nation has caused an increase in demand for houses in and around Abuja because people fleeing the violence in states in the North East, North West, some parts of North Central and South East are moving to Abuja where they think it is safe.
Other locations, especially the high-density residential segments within the hinterlands in Lagos, have also witnessed almost double in the last three years. “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 said.
There are growing fears among developers and property managers that there may even be harsher times ahead for the real estate market, while subscribers may need to brace up for future shocks.
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