The property business in the last two years has gone through a lot of shocks. First, the outbreak of pandemic affected the purchasing power of many potential house owners, and secondly, the collapse or devolution of the naira has given birth to a rising price regime for construction materials.
Developers groan in pain to finish projects caught up in these situations while others have abandoned projects under construction in the hope for a better future, which apparently may not come any time soon.
In Abuja, the growing population in and around the city has presented enormous opportunities for the real estate space even though the cost of acquiring a property is high for many low and middle income earners leaving many of the estates unoccupied.
But experts and players forecast a bloom for the real estate after the ongoing global economic shocks.
Researchers examining the Abuja property environment highlighted some key factors that influence the capital city’s real estate business settings and what the investors should look out for to avoid errors.
A research on the “Factors influencing Rental and Capital Values of Residential Investment Property in Abuja” by Dr Nurudeen Akinsola Bello and Adetoye Sulaiman Adepoju noted that, The average number of rooms; change in maintenance cost/taxes and the neighbourhood characteristics mainly influence the rental value of residential property while cost of construction; type of structure/quality of facilities; potential of rental growth; title and size of the land; neighbourhood attributes; inflation impact; size and structural characteristics and state of supply in property market are the main factors influencing the capital value.”
The researchers noted that, “This variation is an indication for property investment stakeholders to be cautious and specific in the selection of the most appropriate determining factors for their investment objective to avoid investment decision errors.”