Abuja is super-expensive, compared with other Nigerian states and cities. Statistics on Nigerian Property Pro reveal that the average rent for a 1 bedroom flat in Abuja is N1,790,000 per year. It also picks Nigeria’s most expensive house for sale to be one in Abuja, selling for over N200 million. See the report here.
Have you ever wondered why it is so costly to find property to rent or buy in Abuja?
Several factors contribute to this phenomenon. Here are a few below:
Government Presence:
Abuja is the administrative capital of Nigeria, and it houses the federal government, including various ministries, government agencies, and foreign embassies. The presence of the government and diplomatic community creates a demand for housing from government officials, public servants, and expatriates, leading to higher prices.
Meanwhile, check out property to rent or buy in Nigeria here.
Limited Land Supply:
Abuja was purposefully planned and developed as the capital city, and as a result, the supply of land is limited. The availability of land for housing development is restricted, which drives up land prices and subsequently increases the cost of houses.
Infrastructure Development:
The development and maintenance of infrastructure in Abuja, such as road networks, electricity, water supply, and other amenities, require substantial investments. These costs are often passed on to property developers, who, in turn, incorporate them into the prices of houses. The expenses associated with infrastructure development contribute to the overall high cost of housing in Abuja.
High Cost of Construction:
The cost of construction materials, labor, and skilled professionals involved in the construction industry can be relatively high in Abuja. The selling prices of houses reflect these costs, making them more expensive for potential buyers.
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