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Opportunities In Abuja Property Market
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 The Federal Capital Territory, Abuja, remains Nigeria's fastest growing city, with a growing population of about 1.4 million. At a growth rate of 9.4%, the Abuja real estate market promises to be strong for some time to come. Though a majority of the jobs are found in the public sector due to government's heavy presence in the city, there has been a recent influx of private businesses, which is also adding to demand in the real estate market. Also, the recent sale of federal government properties has added to supply. The demolition exercise in the city had the impact of slowing development late last year and early this year, but with monetisation in place and demolition over, the property market is again warming up. According to a property consultant, the demolition has helped to strengthen the market in Abuja because builders now have a more defined structure and guidelines for the kind of structures that should be erected in certain parts of the city. Recent developments/activities Major developments are the gradual but steady conversion of the metropolis to satellite towns, taking place in locations like Karu, Nyanya, Lugbe, Zuba and Gwagwalada, for the low and middle-income earners. Highbrow areas like Maitama, Gwarimpa, and Asokoro are not left out. Developers have zoomed in on these areas with state-of-the-art architecture. In Kubwa, development was halted because of uncertainty surrounding the new planning laws guiding the area. Another development is the conversion of residential property to commercial. This best describes Garki, Wuse and Ademola Adetokunbo, often referred to as central business districts. According to realtors in the city, residential property is scarce in these areas. Where residents are found in these places they soon move out. The high demand for commercial property and tempting offers that property owners find hard to resist encourage this development. Strategy One strategy for playing the Abuja market is to buy into low and middle-income housing. The monetisation exercise left former occupants of government properties the task of paying for accommodation from their own income, so, they opt for more affordable accommodation. This has led to the need for more middle and low-income housing. Investors are fast taking advantage of the opportunity as more estates and low cost houses are springing up around the metropolis, aided by good roads. There are quite a number of properties in the market, mostly in the high-income areas. This is partly due to the fact that government no longer pays for staff to occupy those types of houses; people are now left to do their own house shopping. When government was providing it was easier to have government buy the high-income houses. Now that the onus is on the individual, lower cost properties are being taken. Compare these prices Residential properties around the satellite areas such as Gwarimpa start at N15 million. A semi-detached duplex with about 3 to 5 bedrooms goes for between N15 million and N18 million, a detached duplex for N25 million to N30 million, and rent is about N800, 000 to N900, 000 per annum. A block of four flats could sell for N12 million, with 3 or 4 bedrooms all en suite. There are hardly any bungalows for sale in Gwarimpa. A piece of land covering 1000sqm space sells for about N12 million. The prices are similar at Games village, where semi-detached duplexes sell for N20 million but are mostly twin duplexes; the same obtains in other areas like Wuse, Maitama, and Garki. Mostly foreigners and private homeowners occupy Asokoro. The properties here are mostly residential. Maitama is home to a number of senior government officials and the high-income earners, where payment is sometimes made in dollars. To acquire a duplex in Asokoro or Maitama you need to be armed with between N50 million and N80 million, if you are buying, and between N2.5 million and N3 million if renting, while in Wuse II it may cost anything from N40 million upwards. These areas command such rentals because of the modern structure, good roads, accessibility to major parts of the city, security, by which these areas are characterised, and of course the prestige. In Kubwa, 2 bedroom bungalows in an estate may sell for about N4 million each. At Utako district, a plot of land, less than 1,000 square meters, could be bought for about N18 million, while at Mabushi, a plot of land a little above 1,500 square meters goes for about N20 million. Wuse and Garki are two places that have been taken over by commercial activities. Here, you would find lots of shops and office spaces. Shops and office spaces in Abuja are expensive when compared to Lagos. A shop space in the business area measuring between 25 and 800sqm would go for between N300, 000 and N2.2 million, with a minimum of two years rent. Anything smaller than that will cost between N200, 000 and N250, 000. Opinion of realtors Realtors believe that there is still room for investors to explore the real estate market in Abuja. The opportunities are enormous and diverse. The current housing stock may not adequately cater for the housing needs of the growing population in Abuja, as more private businesses extend their reach to the Federal Capital Territory and more people relocate. The number of restaurants, telecommunications companies, banks and private businesses in Abuja has doubled over the past five years. These will need one form of property or the other. Looking ahead We believe that though yields of 5% to 6% are low in this market, medium to long-term appreciation is likely to remain strong, at over 15%, giving investors a total return of over 20%. The Abuja property market will remain relevant to national growth and development for some time to come. As the current host city for the seat of power it will continue to attract both local and international attention. Therefore, the Federal Capital Territory might just be the place for your next real estate investment.
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