Abuja is the political and administrative capital of the country of Nigeria. The vibrant city has fast developed over the years and is now a compelling location for Real Estate investment in Nigeria. Studies suggest that there’s an effective demand in the sector and there are a lot of developers hungry to meet the demand.
Now, we all know that one thing that discourages people from investing in Real Estate in any major city in Nigeria is the cost. And in Abuja, private sector operators are selling houses and lands at an all-time high. Some houses can cost as much as 250 million naira and over. Now, that does not look like an appealing investment for the everyday Nigerian, does it? So, why should they want to invest in Abuja’s real estate?
Well, I’ll start with one simple reason: because it’s worth it. How many times have you heard stories like this: “a friend of mine bought a plot of land 3 years ago for 1million naira and the land is now worth 4.5million”? I have heard such stories too many times. And I can bet that at the time it was bought, the buyer was probably hesitant. You see, any investment that requires you to only put in little and expect a reward that’s out of this world, is many times not worth the risk. The truth is that you have to be willing to put something substantial on the table in order to get the kind of returns you desire, but with calculated risks. And as time always tells, with real estate, it is always worth it!
Here are five more reasons why you should invest in Abuja’s real estate:
Prime Location: Being Nigeria’s federal capital and Africa’s most intentionally built city, Abuja is an emerging city with constant development in almost all areas. And believe it or not, there’s still more to be done. So, now is the time! The land has not been spent yet or used to its full potential. A lot of developers looking to lay hold of their stake in Abuja have acquired and have been developing in areas that are proving to be prime for real estate. Any mover and shaker in Nigeria will want to have not just one, but at least two properties, in the country’s pulsating capital as it is the second most rated area for real estate.
Growing Population: More people means more money coming into the real estate sector, because all these people will need a place to live. Already, this is forcing some developers to make affordability an all-important factor in their business. And as demand grows, supply must follow. So, if you are a developer reading this, then that’s good news for you. As long as your houses are affordable, you will never be short of buyers, and the market will continue to evolve.
Evolving Market: Nigeria’s housing market is currently estimated at $179.2 billion. This is the investment potential of the market. Most, if not all, of this market is split between major cities like Abuja, Lagos, Port Harcourt, etc. The market is fast growing in size and quality. The bar has been raised and developers are building houses that many of us only thought would exist in the western world, a few years ago. It is amazing that we as a country can show the world how far we are getting by the standard of houses being built.
Inflation: Inflation is a state in which the prices of goods and services rise over time because the value of money goes down as the volume of money increases. Most goods and services act independently of inflation to some extent. But real estate is scarcely negatively affected by it. It works with it instead. In Nigeria, constant inflation is nothing new to us. Even when there’s not enough money in the economy, and other investments lose their value, the real estate market is so massive and functional it takes little to no hits at all, at least in Nigeria, thereby making the investment a hedge against inflation.
Affordability: The great thing about Abuja is that, unlike Lagos, there are multiple areas that present a range of different prices. That means Abuja presents buyers with excellent and affordable houses. You don’t have to go to expensive areas like Maitama or Central Business District to buy a good house or plot of land. Places like Lugbe, Life Camp Extension, Mbora and Karsana are fast developing and are becoming prime areas of real estate. With affordable and stylish houses.
There are many areas in Abuja that a couple of years ago were not as developed as they are now. Some smart people saw the opportunity and bought properties there before everyone else got there. Right now, some of the areas I mentioned above are fast becoming hot spots and will prove to be prudent investments many years from now – for those who key in now. Further, Abuja continues to remain the administrative and political capital of Nigeria, which makes it a haven of constant development and the must-have investment area for all people of Nigeria. Therefore, wherever you live in Nigeria, especially if business, work or leisure brings you to Abuja often, it is a great investment to buy property in Abuja. Matter of fact, even if you don’t visit often, it’s still a smart decision to invest in Abuja’s real estate and hold for later profits or rental income. Remember that Abuja’s population is largely upwardly mobile young professionals, studies have shown. These people all need homes and will readily pay affordable rent.
The ball is now in your court; how will you play?