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.
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