This is not the best time for tenants and accommodation seekers, since rentals for new houses in urban centers such as Lagos and Abuja have increased by approximately 300 percent.
Despite the increase in rental costs, most Nigerians looking for accommodation are more than the available houses, giving space for higher bidders to get their way.
To make the situation worse, real estate agents are now taking advantage of the shortage of accommodation to collect excessive rates for commission, agreement, damage and service charge.
The findings of Nigerian Tribune showed that many Nigerians, who were looking for accommodation, did not find this easy along with the economic difficulties in the country.
Most tenants are currently at the mercy of their owners, while those who cannot pay the high rental cost are moved to the interior parts of the cities.
In Lagos, for example, especially in places such as Victoria Island, Lekki, Surulere, IKEJA GRA and MAGODE, the rental values for a newly constructed room apartments vary between N1.5 million and N3.5 million per year compared to N600 , 000 and N1 .2 million in January 2024.
In addition, two bedroom apartment rentals cost between N5Million and N9Million, depending on the finishing level and facilities, while the 3 bedroom apartments costs between N5Million and N14 million
However, it has been discovered that two bedroom apartments, which are limited in circulation, have a heat demand in these places.
For housing search engines who cannot pay high rental costs, they moved to interior locations such as Ayobo, Mowe-Offada, Ibeju, Ikorodu and Igando, regardless of the high cost of transport that they will have to pay to their workplaces .
The results of the Nigerian Property Center, an online search platform, showed that in locations such as Wuse2, Asokoro, CBD, Gwarinpa in Abuja, the rental costs of apartments from a room vary from N2.5 million to N13 million, depending on of size and characteristics.
One of the real estate agents who spoke with our correspondent in Lagos, Alhaji Sunday Agbabiaka, said the rentals were no longer cheap in the interior locations due to overpopulation.
He said that the demand for accommodation in these enclaves has overwhelmed the offer in the market.
According to Agbabiaka, a great demand for accommodation and a high cost of living have made most owners in the suburbs to increase house rentals.
“People looking for houses in these interior locations are more than the available houses. Therefore, most owners took the opportunity and increase rents.
“You can imagine that about 10 accommodation search engines compete for a three bedroom room, and the owner will style the rent. At least, a person will pay, ”he said.
According to Agbabiaka, the household income in ipaja, Ayobo and Almsho have reached a 200 percent increase in one year.
He added that many people who could not pay high rentals in Surulere and Yaba are moving to Ipaja, Ayobo, Ayetoro and tied in the state of Ogun.
An owner in Iikeja, who did not want his printed name, blamed the situation of the high cost of construction materials.
According to him, going for the current inflation tendency of the nation, the owners would like to take advantage of their properties for survival.
Real estate experts who spoke with Nigerian Tribune confirmed that income in lakes and Abuja have increased by 300 percent in the last year.
They expressed that the current chamber rental crisis in Nigeria demands an immediate and decisive action of the government.
When addressing the fundamental causes of the crisis, particularly the impact of fuel prices increases and investing in sustainable transport solutions, they are of the opinion that the government can relieve the burden of Nigerian citizens and guarantee a more equitable future and prosperous for everyone.
The surveyor and the value of the state based in Lagos, Mr. Olufemi Oydele, said that, in some parts of the state of lakes, most owners have increased their rent by almost 300 percent, especially in new properties Residential in Victoria Island, Surulere, IKEJA GRA and IKOYI.
“This is due to two factors. One, house demand is greater than supply, since Nigeria's housing deficit is still close to 20 million units. Second, the high cost of new houses is exorbitant due to the high cost of construction materials, ”he said.
He pointed out that the fact that “there are rental for rent means that income is not affordable.”
In the midst of this, the real estate expert said that many completed vacancies adorned the environment due to the lack of law to guide against abandoned buildings.
“There is no law in Nigeria to guide against abandoned properties. If there are strong taxes against abandoned properties, market dynamics will reign, ”said Oyedele.
The tourist and assessment of goods based in Abuja, Mr. Osilama E. Osilama, said that the rental market in Nigeria, particularly in the main urban centers such as Abuja, has experienced a dramatic and unprecedented increase in prices .
During the last year, he confirmed that rental costs have shot at more than 300 percent for newly built and older properties.
“This strong increase in impacts in all housing units, regardless of location, with properties in rich neighborhoods such as Maitama, Jabi, Asokoro, Guzape suffering the most important price increases,” he said.
He drew the fundamental causes of high rental costs to a series of factors, from an economy that fails to poorly conceived policies.
Osilama argued that the housing crisis was a direct consequence of a series of poorly advised economic policies implemented by the Federal Government.
The most significant taxpayer, he said, was the increase in Sirit motor prices (PMS), which, according to him, has had a devastating domain effect in all sectors of the economy.
He said: “The increase in fuel prices dramatically increased transport costs for both people and goods, which affected all aspects of daily life.
“This includes the increase in displacement costs, which makes it more expensive for workers to reach their workplaces; higher food prices due to the highest transport costs for farmers and distributors; and higher production costs for companies in all sectors, which leads to higher prices of goods and services.
“Inflationary pressures: the increase in transport costs, even construction materials is not launched. He has fed a wave of inflation, eroding the purchasing power of Nigerians and significantly impacting their ability to pay housing. “
It was of the opinion that the inaction of the Government exacerbates the crisis
According to him, the government's response to the economic crisis had been inadequate.
“The abrupt elimination of fuel subsidies without a comprehensive plan to mitigate the impact on the most vulnerable segments of society has exacerbated the suffering of common Nigerians since then,” he said.
On the way, the real estate expert urged the federal government to reassess the elimination of fuel subsidies.
“Implement a gradual and gradual approach to the elimination of fuel subsidies, allowing the market to adjust and minimize the immediate impact on citizens,” he said
He wants the government to invest in public transport assigning a significant part of the budget previously assigned for the inage and “ineffective” poverty relief programs (direct cash transfers and rice distribution) towards a solid public transport system.
Osilama said: “Specifically, invest in the acquisition of 200-350 high quality bus and fuel efficiency units for each state.
“These buses must be distributed strategically in all areas of the local government, ensuring equitable access to affordable and reliable transport for all citizens.
“Address underlying economic problems: implement solid economic policies that promote sustainable growth, create jobs and improve the general economic well -being of Nigerians,” he said.