Nigerians groan as house rent doubles in major cities

The value of lodging throughout major cities in Nigeria has beocome an enormous pressure on the funds of common Nigerians, who’ve been bedevilled by the rising value of products and providers. This is in accordance with findings by Nairametrics Research.
According to Nairalytics, the analysis arm of Nairametrics, the price of lodging has surged by over 100% in Lagos, Abuja, and Port Harcourt between 2019 and 2022, additional fuelling the rising inflation price in the nation.
According to the National Bureau of Statistics (NBS), Nigerians spent a complete of N57.1 trillion on family consumption in the primary half of the 12 months. This consists of spending on meals, lodging, and utilities amongst others, and it represents a rise of 14.4% year-on-year in comparison with N49.89 billion spent in the corresponding interval of 2021.
Increased family spending: Household bills in H1 2022 accounted for 62.4% of the whole nationwide spending for the interval, a rise from 61.6% recorded in the earlier 12 months.

The improve in the quantity spent by Nigerians on primary facilities was because of the rising value of products and providers, which has seen the nation’s headline inflation hit a 17-year excessive of 21.09% in October 2022.
The value of lodging in major cities throughout the nation has recorded important will increase in the previous three years, consuming into the earnings of common Nigerians, regardless of a comparatively fastened degree of earnings. This has additionally affected the saving and investing skill of common Nigerians.
Human primary wants embrace meals, water, shelter, and clothes, all of which have witnessed unprecedented ranges of will increase in their value, leaving little or no for Nigerians to plan for the long run.

Ideally, there’s a widespread rule of thumb, recognized as the 30% rule, which says to spend round 30% of your gross earnings on rent. This implies that if a person earns N100,000 month-to-month, he/she shouldn’t spend past N30,000 month-to-month on house rent.

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However, findings present that Nigerians could possibly be spending as a lot as 40% of their earnings on house rent, whereas meals bills nonetheless gulp an enormous a part of their family expenditure.
Dissecting the numbers: The common value of renting a regular self-contain in the Kubwa space in Abuja is about N500,000 every year, a staggering 233% improve from a mean of N150,000 recorded three years in the past. Similarly, a two-bedroom flat presently goes for between N900,000 and N1.5 million yearly relying on the character of the house. It was once round N600,000.

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Also, a three-bedroom flat, which used to rent for a mean of N500,000 for a 12 months, has surged to as excessive as N3 million, representing a 500% improve in the previous three years.
The value of flats is greater in different high-end areas like Gwarinpa, Maitama, Lokogoma and so on.
In the identical vein, the price of a two-bedroom flat in Mainland Lagos has surged to over N1.5 million annual primary rent from a mean of N800,000 to N1 million. Also, a mini-flat in the identical space goes for a mean of N700,000 as against a mean of N550,000 recorded three years in the past.
Similarly, in Port Harcourt, Rivers State, the price of housing has additionally elevated by over 100% in the final three years, an extra indication of how lodging is gulping an enormous portion of family earnings.

What brokers are saying: In a dialog with Mr Segun Oni, an actual property developer in Lagos State. He stated that the rise in house rent is a results of the surge in the price of constructing supplies after the covid-19 pandemic.

“It isn’t any shock that house rent has gone up. The worth of cement has nearly doubled, value of sand and granite have additionally gone up considerably in current occasions, coupled with the overall improve in costs,” he stated.

Also, whereas talking to a different actual property developer, Mr Jonathan Aniebiet in Port Harcourt, he famous that the surge in the price of house rent was a results of the overall improve in the financial system.
According to him, instantly after the covid-19, the value of virtually every thing spiked, together with landed properties, which has additionally translated to a rise in the price of lodging.

“In costly areas like GRA, Ada George, and Peter Odili, a room self-contain is rented for a mean of N250,000, a rise from round N150,000 earlier than the pandemic. A 3-bedroom flat in the identical vein rents for a mean of N800,000 from an preliminary price of N500,000,” he acknowledged.

Mr Thompson Okodua, who’s an agent residing in Kubwa, Abuja defined that the excessive value of lodging is a results of the rise in the price of constructing supplies, therefore landlords improve their rents to mirror these modifications.

He added that many residents now transfer to the outskirt areas of the town, like Zuba, and Gwagwalada in search of cheaper flats, even on the danger of spending extra on transport to the town.

What Nigerians are doing: Nigerians are presently taking on distant jobs that can afford them to stay in cheaper residences, with out the effort of transportation and better lodging value. In a telephone dialog with Mr Emmanuel, a house agent in Lagos, he advised Nairametrics that the majority clients now request flats in areas exterior however not too removed from the town.

“People request homes in Sango, Ewekoro, Ajegunle, and Ikorodu areas to keep away from the upper value of homes in major cities in the state,” he stated.

While chatting with Mr Tunde Akinyele, a digital marketer, he advised Nairametrics that he moved from Ikeja final 12 months to stay in Sango, Ogun State because of the excessive value of lodging in most cities in Lagos.

The rising value of housing coupled with excessive meals costs has eroded the buying energy of Nigerians, pushing extra folks under the poverty line. The NBS reported final week that 133 million Nigerians are poor as of 2022, representing 65% of the whole inhabitants.
Following the rise in lodging prices, Nigerians who can afford to work remotely are actually being artistic by residing in distant areas at cheaper prices whereas working in the consolation of their properties. Most younger Nigerians now search distant jobs from international firms in a bid to extend their earnings.

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