Why High Property Prices in Abuja?

It is not beyond our notice that many beautiful houses adorn Abuja, Nigeria’s capital city. The fact that these houses have not impacted the lives of the masses has not also escaped us.

This essentially means that housing, shelter; which is one of human’s most basic needs has eluded the average Nigerian even when they are surrounded by many beautiful and well-constructed estates.

Truth is, not everyone will live in the estates mostly because of their financial status, which is why there are several satellite towns like Gwagwalada, Kubwa etc in Abuja which people can opt for.

Investors who put their money into estates in the capital city, do it in a bid to create value for their investments. There is a certain ecstasy that comes with being an owner of an estate. It would mean a class elevation. Therefore those who build estates do not necessarily do it because they want to provide shelter or housing opportunities for the masses but because it is a good investment for them and they want to be able to afford their own luxuries. See why the prices are on the high side?

2 Bedroom Duplex in Karu District, Abuja marketed by Bluehedge Realtors

It is unfortunate that even though there are laws guiding the housing sector such as the fact that financing for housing projects like estates should be aided by government institutions like the Federal Mortgage bank, the commercial/merchant banks, insurance companies, state housing corporation and other mortgage institutions. However these people fail at their jobs as a result of corruption, ineptitude and sometimes financial mismanagement.

The housing sector is a cause for concern in the country because even though the government has introduced different policies over the years to guide them, they haven’t necessarily been implemented which leaves the sector in the hands of private individuals.

Suffice to say that the main reason investors invest in estates as opposed to private apartments is because they need where to get maximum returns on their money. People who invest in estates are private individuals and not the government so the price is uncharacteristically high and unaffordable for the average citizen.

However it is still common knowledge that citizens who live in Abuja city are mostly driven by the fear of being classed among the poor and so they go for estates or homes that are above their comfort zone.
If the government institutions that are supposed to finance housing continue to fail at their duties, we cannot expect the price of housing to become affordable any time soon.

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