In a desperate bid to raise funds ahead of February general
elections, politicians seeking or sponsoring candidates for
elective posts have started selling their property in major
cities of the country such as Lagos, Abuja and Port
Harcourt.
Investigation by Saturday PUNCH revealed that the
development had crashed property market value as the
politicians reduced the cost of their property by between 50
per cent and 100 per cent just to raise money for campaign.
In Rivers State, a Port Harcourt-based estate practitioner,
who simply identified himself as Nonye, confirmed to one
of our correspondents that many property, especially those
in Old GRA, had been put up for sale by some politicians.
According to him, there has been a sharp increase in the
sale of property by politicians, who ostensibly need money
to woo voters for support.
He specifically said a former governor of the state sold
some of his property in order to assist some politicians
seeking elective positions.
According to him, the politicians’ desperation to sell their
property began in August, 2014 and peaked the following
month.
Nonye said, “There are many politicians who are selling
their property. While some of the property have already
been sold, others are still waiting to be sold. The rush to sell
the property started in August and increased in October,
2014. These property are owned by politicians. The
property are mostly in Old GRA and New GRA in Port
Harcourt.
“One of the governorship aspirants sold one of his property
while a former governor has sold about three of his houses
to support a politician that is currently seeking election.
“The politicians selling their property cut across the Peoples
Democratic Party and the All Progressives Congress.
“One of the governorship aspirants also put up his eight
plots of land for sale in the Old GRA and an aspirant from
Andoni Local Government Area has offered to sell a duplex
in the New GRA.”
On the value of the property on sale, Nonye explained that
while a two-story building could go as high as between
N250m and N300m in a high-brow area like New and Old
GRA, the same property could go for between N20m and
N50m in other areas.
Another estate agent, Bright Osakwe, told Saturday PUNCH
that more property were currently put on sale than in 2013.
Bright said estate agents observed that most of the
property that were currently on sale belonged to top
politicians.
According to him, some of the property go for as high as
between N50m and N60m depending on the size and
quality of the building.
He said most of the politicians have their buildings in places
like GRA, Ada George and Shell Industrial Area.
Bright noted that the politicians would not show up to
negotiate with would-be buyers until they were sure that
serious customers had indicated interest in acquiring the
property.
He said, “The politicians are selling their property now
compared to what it used to be two years ago. We noticed
an increase in the level of property that are put up for sales,
though the politicians don’t show up until a buyer shows
serious interest in buying such property. The property are
mostly houses and you are aware that when you buy the
building, the land follows it.
“Some of the buildings owned by politicians that have been
put up for sale are around Ada George, Old GRA and Shell
Industrial Area. Some buildings owned by these politicians
are also located on D-Line. While some are put up for sale
at N50m and N55m for one story building, others place the
price of their property at N60m depending on the location,
size and quality of the property. In fact, you can see
property of N25m. It depends on the size and location.”
Real estate agents in the Federal Capital Territory told
Saturday PUNCH during separate interviews that a lot of
buildings had being offered for sale but there were “no
buyers.”
The Chairperson, Real Estate Developers Association of
Nigeria, FCT Chapter, Mrs. Binta Ibrahim, said the coming
elections were a major reason for the fall in prices of
buildings in the nation’s capital.
She said, “The issue has to do with the economy, but
politicians equally are selling their property. So, I will say it
is both ways; the economy and the next general elections.
“If you go round Abuja, you will see that a lot of property
are put up for sale, even those that are being put up for
rent, people are not patronising the developers and owners.
“With the approaching elections, and the less circulation of
funds as before, the politicians are desperate to come back
and they have to sell off their property. So, if you look at it
from the investors’ angle, you will see that the investors
now have a good deal because of the way politicians are
selling their estates at give-away prices.”
Ibrahim noted that the development was not favourable to
fresh investors as would-be real estate dealers lacked
liquidity to cash in on the sale of buildings at lower prices
by politicians.
She said, “Because there is no money, the development is
affecting both the politicians and fresh investors. For
instance, you will see a property that you are supposed to
buy for N100m going for N60m and people don’t have that
N60m to take the opportunity.
However, a few persons are cashing in on this, but to
majority of us, it is not a good time.”
Speaking also on the development, the Managing Director/
Chief Executive Officer, Woods and Bricks Limited, Mr.
Andy Elerewe, cited an instance where a politician from one
of the northern states placed one of his houses up for sale
and dropped the price by over 100 per cent but still could
not find a buyer.
He said, “Somebody has a property to sell in Maitama,
Abuja. As at about a year ago, he was saying he would sell
the property at N1.4bn, but last November, the man said he
was ready to sell the same property for N600m. And we
have not even seen people who will buy the property.
“The man is interested in contesting in the next general
elections. I can confirm to you that the elections are really
making politicians to drop prices of their property.”
Another real estate consultant in Abuja, Mr. Ade Adenigbo,
while speaking on how politicians have been offering their
property for sale to raise money for election, agreed that
events in the property market had shown that apart from
the economic crisis caused by slumping oil prices, more
properties are increasingly becoming available in the
market due to the coming elections.
Adenigbo said, “Usually, about six months to elections,
more property are up for sale by politicians so as to raise
funds for campaigns.
“I can confirm to you that there is a surge in the availability
of property that are offered for sale in the market now and
the location of such property suggests that some of them
belong to the politicians.
“If you go to some major streets in Abuja now, you would
see about 10 property for sale before you would see three
for letting. So, in Abuja currently, it is more of sale than for
letting because of the politicians’ desperate need for cash.
“In places such as Asokoro, Wuse II and Maitama where
politicians and wealthy businessmen reside, it may not be
wrong to say that some of the property put up for sale in
those areas belong to politicians.
“Out of 100 property for sale in the highbrow areas, more
than half may belong to politicians, and maybe the rest for
private individuals, developers, businessmen, expatriates,
and so on, and most of them are finding it difficult to get
buyers because of the cash crunch.
“In fact, somebody gave me a duplex to sell in Abuja few
months ago, and ordinarily, that property would have cost
about N180m, but the person told me to accept N100m if
any buyer offers such.
“Two weeks ago, he called to say I should accept N90m if
there is any willing buyer because he ‘needs money for
election.’”
Adenigbo explained that some private individuals capitalise
on the situation to own property they would not have been
able to afford.
He said, “Some people specifically keep their money for a
time like this to get good houses at a cheaper price,
especially from politicians who spend lavishly on houses
and are ready to dispose them quickly.
“There is a house in Gwarinpa that was to be sold for
N170m sometime ago, for about three months now, the
owner is ready to dispose of it for N100m because he
desperately needs money.”
Another estate consultant in Victoria Island, Lagos, Mr.
Bunmi Ajayi, disclosed that even though he would not be
able to disclose the owners of some of the property that
have been newly introduced to the market for sale, a
number of them are on distress sale because the owners
“need the money for elections.”
He said some people who had previously offered their
property for letting had now put them up for sale to make
quick money or raise some for the election.

“If you go to areas like Banana Island in Ikoyi, Ikeja GRA,
Lekki Phase 1, and so on, you will see a number of property
for sale there. Some of them have been there for a long
time while some are new, but these are highbrow areas
where only the rich and politicians can afford to buy
property and their prices are falling.
An estate surveyor and valuer in Lagos, Mr. Stephen Eze,
also confirmed that there were more property for sale in the
market because of the need by some politicians who own
some of them to raise money to fund campaign.
He, however, said there were few buyers because of the
harsh economic situation in the country.
Eze said, “Don’t also forget that some of these aspirants
would be affected by the fall in the price of oil, maybe
through the contracts they would have secured from
government. Since they need to raise money at all costs,
selling their property would be an option, more so that some
of them have more than one.
“That is also why we have many properties for sale in
places like Ikeja GRA, Banana Island Estate, Parkview
Estate, and so on. My opinion is that the upcoming
elections have further worsened the crisis in the property
market because of the availability of properties with no
ready sellers.”
Many of the real estate firms in Ogun State were reluctant
to talk about their clients who are politicians and who are
opting to sell their property.
But after much pressure, some of them said politicians
indeed sold their landed property during this election period.
A property consultant, who did not want his name
mentioned, told one of our correspondents that a senatorial
aspirant who lost in the primary planned to sell his plum
property in Ibara area of Abeokuta for N50m.
The consultant said no buyer was ready to pay for the
property because the price was high.
He said, “The politician is now ready to sell the same
property for N40m.
He said, “The politician has spent so much money to fund
his political ambition but he did not win the primary.
“Now he is broke and he is ready to sell his property to
raise money.”
The Managing Director, Olushina Toki and Co, Ilorin, Mr.
Shina Toki, said some politicians in Kwara State had been
selling their property even before the political parties’
primaries.
According to him, more politicians are offering their
property for sale in preparation for the next poll.
Though prices of property in Kwara State have been
fluctuating, Toki said that it had gone up since the
electioneering activities peaked.
Toki said, “There are politicians selling their property. It is
not peculiar to Kwara; politicians do it even abroad.”

http://www.punchng.com/news/elections-politicians-sell-property-to-raise-funds/

so devastating if they loose

They can even sell themselves. Care, I do not.

Greatest investment they would always say. If only nigeria was like america