Lagos, Abuja to Witness Rise in Housing Cost

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As the property market is stabilising, Lagos and Abuja are to witness a rise in house prices and rental values, New Telegraph has learnt.

This is also not unconnected with the implementation of the N30,000  national minimum wage for civil servants nationwide coupled with huge demand for accommodation, which is in short supply.

As the economy improves,  it is believed that purchasing power will improve, leading to demand for homes or rented apartments.

According to an investigation, house prices for five-bedroom apartments in Ikoyi, Lagos and Maitama in Abuja now average N350 million each due to improve economic condition.

The average price of a three-bedroom apartment in  Ikoyi, Lagos,  costs N140million ($388,906), while the average price of four-bedroom apartments is N213 million ($591,693).

Report on Investment Analysis by Global Property Guide showed that Ikoyi had remained the most affluent neighbourhood in Lagos, registering the highest year-on-year (y-o-y) house price growth of 20 per cent as at  October  2019.

According to the report, this is followed by Ibeju Lekki, with annual price increase of 12 per cent, while house prices in Lekki, Ajah, Gbagada, Surulere, and Yaba were largely steady.

On the other hand,  it said Ikorodu saw the biggest decline in house prices of 25 per cent last year followed by Ikeja (-16.7 per cent), Alimosho (-10.7per cent), Isolo (-9.1per cent), and Victoria Island (-8.7per cent).

Analysts pointed out that Abuja, the capital city of Nigeria, had been experiencing increasing interest from both local and foreign investors.

In Rivers State, especially Port Harcourt, the average prices of three and five bedroom apartments were N40 million ($111,116) and N 75million ($208,343) respectively; while average prices of three and five bedroom apartments in Ibadan, the capital of Oyo state were N13 million ($36,113) and N40 million ($111,116) respectively.

In Ogun, the average price of three-bedroom apartments stood at N 11.5 million ($31,946) while it was N30million ($83,337) for five-bedroom apartments.

According to analysts, the housing market would continue to stabilise throughout the year, with house prices and residential rents expected to either remain stable or rise moderately.

Managing Director, Northcourt Real Estate Limited, Mr. Tayo Odunsi, confirmed that studio apartments, one bedroom and two bedroom flats close to city centres have continued to enjoy demand.

According to him, there has been a shift by some developers in favour of these categories of apartments.

He pointed out that the rising demand for short let apartments would lead to more conversions, giving developers one more reason to shift focus from bigger houses to studio apartments.

This, he said,  would have dual benefits of meeting the existing demand while maintaining cash flow for developers.

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