The Abuja real estate market is showing renewed signs of life. This is being underpinned by a new political tenure, plans to complete stalled infrastructure projects, and migration of new government appointees and their aides, from all parts of the country.
Previously, the market had received limited interest from institutional investors. This is due to unfavourable economic conditions resulting from policies from the previous administration further worsened by the COVID-19 pandemic.
However, in this article, we highlight four signs that point to renewed life in Nigeria’s capital city and lead us to believe that the market is set for a major comeback
- New Infrastructure Completions Expected Following Wike’s Appointment as FCT Minister
The appointment of Nyesom Wike has brought added impetus to the completion of infrastructural developments in Nigeria’s capital city.
The minister declared his intention to restore the Federal Capital Territory masterplan and committed to completing five infrastructural projects within the first eight months of his tenure with most of them being major roads in the state such as:
- Completion of roads B6 and B12 linking Constitution Avenue to City Gate, Abuja and Circle Road in the Abuja Central Area.
- The full scope development of arterial road N20 from Northern Parkway to Outer Northern Expressway (ONEX).
- The rehabilitation and expansion of Outer Southern Expressway from Villa Roundabout to Outer Southern Expressway (OSEX)/Ring Road 1 junction with four interchanges.
- The construction of Southern Parkway from Christian Centre (S8/9) to Ring Road 1.
Once complete, these roads will improve connectivity within the city as the rehabilitation and expansion of major roads like Outer Southern Expressway will provide direct connection to and from areas in the city’s suburbs like Kukwaba and Kaura.
As evidenced by past performance, notably Epe, the introduction of infrastructure drives up the value of the areas in which they are situated. As such, we’re expecting a significant increase in demand and value for real estate located within these suburbs.
- Luxury Developments like The Shore are recording an uptick in takeup
According to Estate Intel, new luxury developments along the Jabi Lake area are recording high takeup rates. One example is the Shore by 7 Fifteen, a 78-unit residential complex scheduled to be completed in Q2:2025.
According to 7-Fifteen Capital Limited, 1 and 2 beds in the development sold out within 3 months resulting in plans for two additional luxury projects within the Jabi Lake vicinity.
The luxury residential segment in Jabi, Abuja, occupies 5% of the market – far below the deluxe and middle-income segments which make up over 90% of total stock according to Estate Intel.
As such, this gap has presented an opportunity for developers even as demand for such property particularly within a central area like Jabi grows.
- Seplat moved its corporate office to the World Trade Center in Abuja
As highlighted in a previous article, Nigerian oil and gas company, Seplat recently moved its corporate office from SPDC (Shell) Corporate Office to the 26,400m2 World Trade Center Tower II on Constitution Avenue, Central Business District of Abuja, Nigeria.
With the Abuja office market mostly driven by relocations, this is a notable development in terms of the location and size upgrade.
Although too soon to comment, Seplat’s decision to keep their corporate headquarters in Abuja, with Lagos often the go-to destination for corporate headquarters, could be viewed positively amidst renewed interest in the Abuja market.
- The Development of the $18 Billion Abuja Centenary City FZE
Centenary FZE is a master-planned mixed-use smart city development located in Abuja and being developed as a joint venture between Front Range Developers of the UAE and Centenary City Plc, which offers investors zero taxes, levies, and favourable foreign exchange regulations.
In addition to the Grove, the city, similar in offering to the Lagos FZE, has received investment interest from multiple multinational companies for potential developments and is set to be a key master plan development in Abuja and Africa.
Overall, based on these factors, we’re expecting an increased supply of residential developments in Abuja with luxury developments in the pipeline for the Jabi area.
Furthermore, we anticipate an appreciation in land value for the suburban areas that will benefit from the completion of the infrastructure projects.
All these coupled with a possible uptick in office leasing activity point to a renewed market and give reasons to be optimistic about the Abuja real estate market.