Why Now Is The Time To Invest In Real Estate In Abuja Nigeria
Abuja is the Federal Capital Territory (FCT) strategically located in the centre of Nigeria, a home to over 2.5 million people and multiple ethnic groups. It was officially designated as the Capital of Nigeria in 1991 following the relocation of the then government of President Ibrahim Babaginda from Lagos. It is one of the wealthiest cities in Africa. It has a number of popular landmarks like the ASO ROCK presidential villa, Central Park, Central Mosque and Church, International Conference Centre and many more.
The FCT consist of 6 different Area Councils namely; Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje and Kwali. The various areas have a lot to offer in terms of business opportunities, leisure and diverse cultures.
Are you considering investing in Real Estate? – Here are a few compelling reasons why you should consider investing in Abuja.
1) ROBUST ANNUAL RENTAL INCOME
With Abuja being the Capital City, it is the choice location for a lot of families, businesses and expatriates. Investing in real estate for rental income in Abuja is attractive due to the demand for rental properties and the rental growth arising as a result. As a consequence of the recent population explosion in Abuja due in part to the security challenges in North East Nigeria, demand for rental properties has steadily been on the rise. This demand has resulted into very high rents in all the Districts in Abuja. The average yield of rental properties in Abuja is currently 8%. The list below provides an indicative rent demand for a typical 3 bedroom flat in the most popular areas in Abuja;
Prime Location Annual Rent
Maitama – N3,000,000 or $10,000
Wuse 2 – N2,500,000 or $8,333
Asokoro – N3,500,000 or $11,666
Garki – N1,800,000 or $6,000
2) CAPITAL GAINS
“The best time to buy a home is always five years ago” – Ray Brown.
It is no secret that real estate appreciates with time and if done right, one of the easiest ways to acquire wealth. Despite the high cost of living in Abuja, the commercial hub is spreading as many businesses, start-ups and multinationals have been experiencing a sustained growth in the past few years. This has led to a steady demand for investment properties such as offices, retail and industrial properties. As a result, capital gains on holding both commercial and residential properties has been on the rise for some time. It is not uncommon for a commercial property to experience a growth rate of 5% from year to year.
3) HEDGE AGAINST INFLATION
The annual inflation rate in Nigeria stood at an average 11% as at 2019. Investment in long-term real estate has always been seen as a good strategy to hedge against inflation. The long term capital gains derived from real estate investment means that an investor would always be better off holding property that most other investment vehicles.
These are a few compelling reasons why now is the time to invest in real estate in Abuja. Should you be interested in investing in Abuja or require real estate professional advice, do not hesitate to reach to me at firstname.lastname@example.org