Friday 12 June 2015

Abuja Property Market Set For Boom With New Lawmakers, Politicians


The property market in Abuja, the Federal Capital Territory is poised for a boom with  almost 2,000 political office holders and their dependants streaming there in the onset of a new administration in government.
A National Bureau of Statistics (NBS) survey finds that average household size is 5.9 and 4.9 persons in rural and urban areas, respectively.
It is assumed that most of the in-coming political office holders are urban dwellers. With the size of the average urban household at 4.9 it then implies that the said 2,000 office holders’ households comprise about 10,000 individuals.
It has been established though, that not those involved move to Abuja with their households and that those who do, often do not do so in the immediate.
An All Progressives Congress APC-led government was inaugurated on May 29, replacing the People’s Democratic Party ( PDP) that had been in government since 1999. With the change in government, a new set of people are expected to migrate to Abuja, representing the 36 states of the federation at the National Assembly and the Presidency.
Already, President Muhammadu Buhari has gotten the nod of the National Assembly to appoint 15 advisers. The appointment of ministers which will increase the number of appointees at the Presidency is expected to follow in succession.
Also, the eighth National Assembly debuts with about 309 new members from the 36 states of the federation. Of these, 76 are in the Senate, while 233 are in the House of Representatives.
Each of the new members is allotted five legislative aides who are to be employed to work with them. This translates to 1,545 aides but could increase if any of the 309 new members gets a principal position. A member occupying a principal position, according to the National Assembly Service Commission, is entitled to ten aides.
Sunday Adedeji, a real estate operator, says that with this number , huge demand is hence expected on the property market when the administration kicks to full throttle.
Despite the call for  a slash in government expenditure and the anticipated cut in remuneration of federal lawmakers, the property market is in for a boom, at least for this year.
Operators who complained of stagnancy in the market prior to this period are now full of hope of a change, even with the tough talking new Nigerian president, Buhari.
Already, tmarket operators are getting enquiries about leasing or outright acquisition of properties in Abuja. Those that don’t have the type being requested are also reaching out to friends in the market for assistance.
“ We have been getting enquiries and meeting people who are in need of property for accommodation. I was busy throughout Sunday attending to enquiries and taking prospectors round the properties that we have for lease or sale”, said Adedeji.
He added, “Although they haven’t started paying up, they have shown preference for highbrow areas like Asokoro, Maitama and Wuse”.
A newly-built four or five bedroom flat in Asokoro or Maitama currently sells between N600million and N700million, while older ones go for a minimum of N400 million.
Likewise, a nine-bedroom mansion with gymnasium, suspended swimming pool, land mass of over 6,000 square metres, costs between N1billion and N1.5billion.
Buhari had complained of bloated government functionaries that have been a drain on the treasury pushing up overheads. Also the speculation to erase the position of junior ministers in the cabinet has pointed to prospects of  a lean workforce by government at the centre.
A lean workforce and delay in the release of allowances for the new political office holders especially, it is perceived, could create a lull in the property market.
An outgoing lawmaker however told BusinessDay that the National Assembly members always find a way around such challenges.
“The banks are there to give out facilities, knowing that accommodation for the lawmakers had been monetised,” said the former member.
Some operators  are however are not so lucky to be having such enquiries from the high networth lawmakers.
“The property market has been stagnant since last year. Politicians were cautious in investing because they don’t know what will happen when the new government resumes”, another operator said.
“Our hope now is on the new lawmakers coming but the jump expected will still be minimal”, he emphasised.

Businessday

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