Recession: Downward fall on rental values – NIESV
Stories by Patrick Andrew Abuja Th ere is noticeable downward fall in rental values in Abuja and environs following the lingering economic recession in the country. Th is was disclosed by the Nigerian Institute of Estate Surveyors and Valuers (NIESV) through its National Publicity Secretary, Mr.
Charles Ebiai, who however noted a contrast in property sale. According to NIESV Abuja residents as is the case in other cities in the country are having hard times meeting their rental obligations due to the current harsh economic recession and high foreign exchange which has resulted to scarcity of forex. “People don’t have money to meet their rental obligations whether they are in the highbrow areas or in the satellite towns.
Th ere is a fall on rental values. In contrast though, there is some stability in capital value, and it is not moving,” he said stressing that people are now more concern about feeding than buying property. “You see very few persons are buying property now because people don’t have money, and the recession is yet to subside. Again, those with the fund are somewhat cautious because of government policy. You see, people afraid to invest in real estate because they could be subject to some sort of harassment.
Th e result is that the usual big buyerspoliticians and political appointees and senior civil servants- have adopted cautious approach and most out rightly don’t want to venture into buying property,” he said noting that this development has had serious spill over eff ect on real estate business. Even as an Estate Surveyor, if you put your board on a fi ne house, EFCC will come and ask you who owns the property that you are marketing so at the end of the day, everybody is easing out and nobody wants to lay claims to such property,” he stated noting that the fear of harassment by security agents has had adverse eff ect on property business in major cities in Nigeria.
According to him, NIESV hopes the government would fi x the economy and ensure suffi cient foreign exchange to enable property owners access needed foreign exchange to bring in materials as well as ease pressure on capital.