With the upcoming inauguration of Ahmed Bola Tinubu as President, the high-end areas of the Federal Capital Territory (FCT) and Lagos are experiencing a significant surge in rents and property values. The upcoming influx of new legislators, friends of legislators, and families of political officeholders into the FCT has resulted in a sharp increase in property values. The demand for high-end housing has increased, and in some locations in the FCT, rent has gone up by over 35 percent, despite the country’s economic challenges.
The surge in property values has proven to be a boon for estate developers, landlords, and property agents, who are cashing in on the high demand for housing. Estate developers and agents are experiencing a significant increase in business as new lawmakers and political appointees scramble for accommodation.
The increase in rent is due to the usual demand for high-end housing in these areas, coupled with the transition to a new government that has amplified the situation. The affected areas include Wuse II, Maitama district, Asokoro district, Aso Drive, Wuye, Katampe Extension, Wuse 1, 2, 3, 4, and 5. Rent for a four-bedroom duplex in Asokoro and Maitama now goes for N10 million to N12 million, while it ranges from N7 million to N10 million in the Wuse axis, depending on the location.
However, the surge in prices is becoming increasingly challenging for those who cannot afford them, and they are forced to settle for less expensive areas or share accommodation with others. Tenants are struggling to pay their annual rent due to the recent increase, claiming that landlords are increasing rent at their discretion without considering their circumstances.
Property experts attribute the recent rent hike to the high cost of building materials and the process of acquiring land. The insecurity in the country has also 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 seeking refuge in the capital.
The increase in property values is likely to continue, with the new government’s transition period resulting in more demand for high-end housing. Nevertheless, the situation calls for government intervention to ensure that the housing needs of Nigerians are met without causing undue financial strain.
