A MAJOR crisis is imminent in the housing sector owing to soaring rent, coupled with recurring policy inconsistencies by government on the housing needs of Nigerians.
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Punch

A well maintained Estate

The increasing demand for houses has not only shot rent out of the reach of the majority of the citizens but also triggered fluctuations in the prices of building materials.

A survey showed that most residents of such cities as Abuja, Lagos, Port Harcourt, Kaduna and Enugu are groaning under the squeeze of estate agents managing the few available housing units.

Experts say the country requires at least N400bn yearly to fund the housing needs of the citizenry.

The amount is for an estimated 400,000 housing units at a mere conservative N1m apiece.

The President Umaru Yar’Adua housing policy is to build 400,000 housing units annually (10,000 housing units in each of the 36 states and 40,000 in the Federal Capital Territory, Abuja).

According to Lagos-Nigeria-Real Estate.com, a luxury three bedroom flat at Omole phase 2 goes for between N900,000 and N1.2m per annum. In nearby Ogba, it goes for between N400,000 and N500,000 per annum. At Magodo GRA, a three bedroom flat goes for between N1.1m and N1.2m per annum. In Ikeja, a three bedroom flat goes for between N950,000 and N1.5m.

In Surulere, a three bedroom flat goes for between N600,000 and N800,000 per annum. In Lekki, a three bedroom flat at Agungi goes for N1.8m per annum while a two bedroom flat in the same area goes for N1.3m.

For Osapa London, also in Lekki, a three bedroom flat goes for N1.2m.

In Lekki phase one, a two bedroom flat attracts N2m. In Ikoyi, a two bedroom serviced flat goes for N3.5m per annum with a service charge of N500,000 per annum. A three bedroom flat goes for as much as N5m per annum.

At Ifako Gbagada, a four bedroom flat goes for N900,000 while a three bedroom flat at Mangoro (Guiness Side) goes for N500,000 per annum. A three bedroom flat at Egbeda plus boys quarters goes for N5000,000 per annum while a three bedroom flat at LASPOTECH estate, Ikosi Ketu goes for N600,000 per annum.

Rents are also charged in dollars. For example, a four bedroom serviced luxury flat at Happy Haven Estate, Banana Island, goes for $120,000 per annum while a tastefully furnished, fully serviced luxury penthouse at Ocean Parade Towers, Banana Island goes for $250,000 per annum.

In the slum areas of Ajegunle, Okokomaiko, Agbado Ijaiye, standard three bedroom flats can go for between N90,000 and N180,000 per annum. It is also in these places that one can get single rooms and room and parlour for rent for prices that range between N18,000 and N70,000 per annum.

In Enugu metropolis specifically, the landlord is king. For this exclusive club of home owners, anyone in search of an apartment is a prey that must be bled to the last blood.

On hand to egg them on are the ubiquitous agents and caretakers who see every prospective client as the next meal ticket who must bear the brunt of their economic condition.

Operating at the fringe also are conmen posing as estate agents duping the unwary.

The city which hosts a multitude of tertiary institutions with the resultant dense student population makes it easier for house owners to charge outrageous rents even for tenements that belonged to the 19th century.

Depending on the area, a two-bedroom flat at Independence Layout goes for between N200,000 and N250,000 per annum, while the same apartment attracts from N240,000 to N300,000 at New Haven, the heartbeat of the city.

Gloria Ibenekwu, a Resident Surveyor with Pat Onukwuli Estate Surveyors & Valuers, traced the high cost of rent in the state to the high demand for flats which she said outstrips supply.

She noted that the high cost of building materials also contributed to the cost of construction which according to her was further exacerbated by the global financial crisis.

The Managing Director of Enugu State Housing Corporation, Chief Ikeje Asogwa, blamed the high cost of building materials and construction costs for the housing crisis in the country, noting that the situation could be reversed if the prices of building components, especially cement are reduced.

Some residents of Port Harcourt, the Rivers State capital believe the city charges the highest rents on property in the country.

Investigations revealed that a single self-contained room in D-Line, GRA 2 and 3 goes for between N150,000 and N200,000, while a one-bedroom flat goes for between N250,000 and N300,000 per annum.

A two-bedroom flat in D-Line, GRA 2 and 3 goes for between N450,000 and N700,000 a year depending on the finishing on the building.

A three-bedroom bungalow in D-Line area of the city goes for between N800,000 and N1m, while a similar property in Old Government Reserved Area and Amadi Flats go for between N1.5m and N2.5m respectively per annum.

A three-bedroom duplex in D-Line goes for between N2m and N2.5m while a similar property in Old GRA and Amadi Flats would go for between N4m and N5m per annum.

However, rent on property located outside the hub of the city in areas like Rumuomasi, Rumuola, Rumuokoro and even the Old Port Harcourt Township are relatively cheaper when compared to what obtains in the highbrow areas.

Investigations further revealed that most property owners prefer upfront payments ranging from two to three years with additional 10 and five per cent of the total rent fee charged as agency fees and legal fees respectively.

In Kaduna State, the cost of rent has been rising lately. In the Kaduna metropolis a two-bedroom apartment goes for not less than N200,000, while in Barnawa and Narayi High the cost is higher because of the high concentration of people in these places.

Again, in the same area, a two-bedroom apartment goes for a minimum of N250,000 while a three-bedroom goes for not less than N350,0000 per annum.

While a self-contained apartment in the state capital goes for about N80,000, the same accommodation in Kaduna South attracts N150,000 per annum.

Meanwhile, a former Publicity Secretary of the Nigrerian Institution of Estate Surveyors and Valuers, Mr Meckson Okoro has implored the Federal Government to make the nation‘s housing policy more flexible.

According to him, it is through easy accessibility to land and finance as well as deliberate provision of an enabling environment that will make the nation accomplish its housing needs.

He frowned on the politicisation of the nation‘s several housing policies, noting that these made the country not to achieve much since independence.

He said, “The Federal Government should make the private sector to be interested by creating adequate and enabling policy and climate to encourage the private sector to invest in houses.

“We have policy impediments because government did not focus positively towards making private sector to also be interested in housing development.”

In another development, within the past three years, mortgage banks in the nation‘s capital city have been enjoying an unprecedented boom as business and residential accommodation remain in relatively high demand.

Documents made available to Sunday Punch at the Federal Mortgage Bank of Nigeria indicates that 102 Primary Mortgage Institutions are accredited by FMBN‘s Loans Production Department.

Through them, billions of Naira has been made available to those seeking mortgage loans under the National Housing Fund.

Although officials of FMBN declined to release relevant official statistics on the grounds that the bank‘s Corporate Affairs Manager, Alhaji Dauda Yusuf had travelled, they assert that the National Housing Fund Act No 3 of 1992 which stipulates that every Nigerian must contribute 2.5 per cent of his salary to the fund also offers everyone an opportunity to own a home.

FMBN which was established by the Federal Government in 1956 with the purpose of facilitating effective mobilisation of funds for the housing sector has had about 19 managing directors.

It manages the National Housing Fund that was established by Decree No.3 of 1992 to facilitate the continuous flow of low-cost funds for long term investment in housing for the benefit of all Nigerians.

Leading mortgage institutions in Abuja such as Aso Savings and Loans Plc, Union Homes Ltd, First Generation Homes Limited and Abbey Building Society Plc are facilitating provision of houses by individuals and housing estate developers.

For instance, First Generation Homes Limited‘s support has been crucial for EFAB Limited which now provides more than 2, 500 housing units of various price ranges at EFAB Estates in the city.

Mr. Omede Odekina, a Public Relations Officer at Aso Savings and Loans Plc told Sunday Punch that his company has been facilitating home ownership for thousands of salary earners and those engaged in the informal sector.

The daily influx of people from all parts of the country, the extensive demolition and eviction carried out in the Federal Capital Territory during the Obasanjo era and the continued relevance of Abuja as a political hub are among the strongest reasons driving the city‘s real estate values upwards.

However, there are clear indications that members of the body are doing well in Abuja‘s thriving real estate market.

Agents of different hues and even scammers have also featured while the speculative prices of land encouraged forgeries of documents.

According to the Customer Relationship Manager at Abuja Geographic Information System (AGIS), Alhaji Muhammad Musa-Gombe, the Federal Capital Territory resolved to computerize the entire land record system of the FCT in place of the manual system that was plagued by numerous bottlenecks, widespread forgeries, document laundering, and racketeering of land.