Login Register
feel free to call 09056000005

Nigerians hit by rent hike as vacancies dwindle

The real estate sector in Nigeria is currently facing challenges, including a decrease in available rental properties, rising rents and home prices, increased mortgage rates, and inflation. According to recent data from the National Bureau of Statistics (NBS), Nigeria's yearly inflation rate reached its highest level since September 2005, driven by soaring food prices and a weak naira. As a result, the cost of building materials has increased, leading to project delays and reduced portfolios for developers.
 
The effects of inflation and rising costs are particularly felt in affordable, mid to low-income areas, where vacancy rates are at a record low. In Lagos, for example, rental prices have increased by 25 to 40 percent in certain locations over the past three years, and some high-density residential segments in the hinterlands have seen almost double the rental growth over the same period. Demand for housing in city centers, especially from students, young professionals, and millennials, remains high, but supply has been slow due to the rising cost of construction.

Private developers, who account for a significant portion of urban housing in Nigeria, tend to focus on high-end neighborhoods with higher capital values, such as Ikoyi, Lekki, Victoria Island, and Ikeja, rather than affordable housing options. This has contributed to the increase in rents and home prices in these areas. In other cities like Abuja, areas such as Jabi, Wuse, Utako, and Gwarimpa have also seen low vacancy rates and increased residential development.
 
Overall, the real estate sector in Nigeria is facing challenges due to inflation, rising costs, and supply-demand dynamics. Renters are experiencing higher rents and reduced availability of affordable housing options, while developers are grappling with increased construction costs and delayed projects. It remains to be seen how the real estate market in Nigeria will evolve in the face of these challenges and changing economic conditions.

Similar Topics

Event Set to Celebrate Managers Who Shape Careers and Drive Organizational Growth   Business...

8 days ago Read More

Global Leaders to Converge in Lagos for Landmark Event Driving Urban Innovation and...

9 days ago Read More

In a bold move to redefine affordable luxury housing, Nigerian real estate giant Gtext Holdings has...

17 days ago Read More

Industry Experts Urge Anti-Corruption Measures, Innovative Financing to Address Crisis By: Oche...

22 days ago Read More

LAGOS, NIGERIA – Global real estate consultancy Knight Frank and UK developer Mount Anvil...

24 days ago Read More

By Oche Onum Lagos, Nigeria As Nigeria’s real estate sector braces for 2025, rapid...

a month ago Read More

By Oche Onum Abuja, Nigeria In a landmark move to combat climate vulnerabilities in urban...

a month ago Read More

LAGOS, NIGERIA The Federal Government announced plans Wednesday to establish a Real Estate...

a month ago Read More

According to The Guardian's investigation, 70% of Nigerian states rely on manual land...

a month ago Read More

What is the Initiative? The Federal Government of Nigeria has unveiled an N100 billion private...

a month ago Read More

Abuja, Nigeria’s gleaming administrative capital, has long symbolized hope for migrants...

a month ago Read More

Abuja, Nigeria The Federal Housing Authority (FHA) has suspended all ongoing construction projects...

a month ago Read More

Lagos, Nigeria  Amid Nigeria’s escalating housing affordability crisis, real estate...

a month ago Read More

Renowned Nigerian gospel artist Mercy Chinwo has broken her silence in an emotional video...

a month ago Read More

The Nigerian real estate market is projected to hit $2.25 trillion by the end of 2025, according to...

a month ago Read More

Nigeria’s Minister of Housing and Urban Development, Ahmed Dangiwa, has called on...

a month ago Read More

Affordable Housing and Luxury Properties Set to Propel Nigeria's Real Estate Market Over the Next...

2 months ago Read More

Hope for improved housing supply in Nigeria may remain unfulfilled, as the 2025 fiscal budget...

2 months ago Read More

Nigeria commemorated its annual Armed Forces Remembrance Day on January 15, honoring military...

2 months ago Read More

Nigeria’s ongoing GDP and CPI rebasing reveal real estate has overtaken oil and gas as the...

2 months ago Read More