Abuja properties sing sweet recession blues

This is one of the rare times land­lords have had to complain that ‘business’ was not coming as usual. The capital city used to be a honey-pot for property owners especially in the days of “free money” as one of our reporters described it.

In time past, politicians and contrac­tors will rush to live in Abuja to take advantage of a system fragmented by massive allegations of corruption. When a politician strikes gold and does not ship it abroad, the other options will be to plough a significant part into properties. Some who are not fortunate to get physical cash may be gratified with lands. By so doing, land as a commodity in Abuja was near the same value as oil in Port Harcourt.

The tides have changed. It is not just about a new government set on ‘its change agenda’ but the ongoing recession has compounded what is already a tight situation. “Free money” is no longer “free” and the legit money is hard to come by. Hence, the politicians, contractors and the entire populace are feeling the financial constrain. Price of properties is down as a result.

Rents in many parts of the capital city are taking a tumble. In an affluent area such as Wuse 2 Maitama, a 2 bedroom apartment which used to go for N1.5 mil­lion is now between N1 million to N1.2 mil­lion. A self-contain in Asokoro has dropped to N600, 000 from N700, 000 and N800, 000. In less urban locations like Lugbe rents are down between N400, 000 and N450, 000 from N600, 000.

A residence who stays in Abuja dis­closed that he had paid N500, 000 in 2015 only for the landlord to ask him to renew with N400, 000. Luke Ovie, a tenant at Federal Housing Estate, said his annual rent was N700, 000 but that the landlady has asked him to start paying N450, 000. At Games Village, a two bedroom flat that initially rented for N1 million now goes for N800, 000.

Despite the drop there is little demand because people’s incomes have seen the worst depreciation owing to the recession.

But analysts are saying it is the best time to buy into the Abuja property mar­ket for those who have spare money. As rent tumbles, price of properties have also taken a direct hit. A three bedroom flat that previously went for N20 million at the Federal Housing Estate in Lugbe can now go for N17 million. At Apo, a three bedroom detached duplex sold between N40 million to N45 million has dropped to less than N40 million. At Apo Resettlement, the same housing unit went for between N25 million and N27 million, but now goes for N23 million and N24 million.

Plots of lands at Kubwa which used to be sold between N4.4 million and N7 million has dropped to about N3.5 million and N6 million.

Land investment will always appreci­ate, according to a source knowledgeable on the matter. Abuja properties may not appreciate at the same rate like Lagos but eventually it will or stay at the same rate. Government is complaining about money and going after politicians alleged to have stolen money. Hence many of the culprits are eager to dispose the piece of land or property that is likely to bring them attention. Sometimes they are willing to take a lot lower than the going price of the property.