Residential Apartment Prices Skyrocket in FCT’s Highbrow Areas as Lawmakers Drive Demand

Residential Apartment Prices Skyrocket in FCT’s Highbrow Areas as Lawmakers Drive Demand

…By Dorcas Funmi for TDPel Media.

Prices of residential apartments in the upscale neighborhoods of the Federal Capital Territory (FCT), such as Maitama, Asokoro, and Wuse, have witnessed a significant surge attributed to the high demand from lawmakers.

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With over 400 members in the National Assembly and approximately 500 support staff, the demand for residential accommodations has automatically driven up the prices.

Earlier reports indicated that the Federal Government might allocate about N23.48 billion for housing allowances for National Assembly members throughout their four-year tenure.

The housing allowances for the 107 Senators, excluding the Senate President and Deputy Senate President, are estimated to cost about N1.38 billion annually, while housing expenses for the 356 members of the House of Representatives will amount to N4.49 billion annually.

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Real Estate Firms Increase Prices to Meet High Demand

According to The Punch, real estate firms operating in these affluent areas have raised the prices of residential apartments by a minimum of 60% due to the high demand from newly inaugurated National Assembly members.

Confirming the situation, an anonymous staff member from a real estate firm explained that the simultaneous search for housing by over 900 individuals naturally leads to an increase in housing costs.

The staff member stated, “Yes it has, we have over 400 NASS members with over 500 support staff looking for housing accommodation at the same time, so automatically the force of demand and supply has come into play, and the cost of housing has jacked up.”

Factors Contributing to Price Hike and Temporary Housing Arrangements

Providing further insight into the issue, a real estate agent named Bimbo highlighted that apart from the high demand, the removal of fuel subsidies has also contributed to the increased prices of houses.

Bimbo revealed that due to the intense demand, some legislators have resorted to short-term rental apartments until they can afford to purchase their preferred residences outright.

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The agent explained, “Prices of houses in posh areas have increased drastically.

Houses available for rent now go for N6m, up from N3m prior to the inauguration, and other smaller places for their aides that were around N800,000 now sell for almost N1.4 million.

Most of the senators prefer to buy than rent, and this is even more expensive, as a house in those posh areas will cost not less than N150 million.”

Economic Realities and Unoccupied Properties

The rise in housing costs is not solely due to the arrival of new senators but is also influenced by current economic realities resulting from the removal of fuel subsidies.

Despite the high demand, there are still unoccupied houses that owners would rather leave vacant than sell for a reduced price.

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Additionally, some senators have chosen to reside in short-term rental apartments temporarily until they can secure their own properties.

For instance, there have been instances where senators paid N1 million per month to stay in such apartments.

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