BY ESV. MOMOH JIMOH
Shelter is one of the basic necessities of human existence. This implies that no matter the condition a man finds himself, he must strive to have a place of abode
This explains why it has become so worrisome that rent for decent accommodation in Abuja and most parts of the country has skyrocketed beyond the reach of average people.
The exorbitant cost of rent in Abuja is more prevalent and disturbing in choice areas located within the Federal Capital City (FCC). The areas comprise: Phase 1 districts of Abuja like Maitama A5, A6 & Extension (A7 or A8). Others are: Asokoro main & Extension, Wuse 1 & 2, Garki 1 & 2, Guzape, and Central Area referred to as the Central Business District.
These locations are most sought after because of the first-class infrastructure that abound, incredible social amenities, good security arrangement and amazing neighborhood. These realities underscore the reasons why the areas constitute the choicest location for the high and mighty in the society .
They include: Top political office holders, captains of industry, top diplomats and highly successful business men and women
The result is that the rents in the above-mentioned zones are mind blowing and can only be accessed by a few wealthy individuals: For instance, a detached duplex of 5 bedrooms with Boys’ Quarter and Guest Chalet is as high as N50m – N150m a year in Maitama and Asokoro Districts.
The rental trends although comparatively lower in Wuse 2 and Wuse Zones and Garki Areas but they are way above the reach of middle class Nigerians
The rent scare is the same in Phase 2 locations, comprising of Mabushi, Katampe Main & Extension, and Wuye.
These areas are close to the city centre but with also good infrastructure base.
However, apart from Wuye, Katampe extension, the other districts in phase 2 have not been fully serviced.
The land allocations there are more of high density or at best medium density. The security architectures are also not near what obtains in the city centre. Therefore, the rentals obtainable there are not as high as it is in the FCC.
For instance, a similar 5 bedroom detached duplex with ancillary facilities under reference in Maitama would command a rent of between N20m to N45m per annum. This same class of property would attract higher rentals in Katampe extension because it is well provided with high networks of infrastructural facilities. In addition, it is a low density class of land use classification.
People who cannot afford the rents in the FCC as well as in Phase 2 areas mentioned above are confined to the satellite towns like Kubwa, Bwari, Gwagwala, Lugbe, Kuje or Karu. Here, the rents are much lower because the neighourhood lacks infrastructural facilities and there’s prevalence of security threats Furthermore, its distance from FCC and crowded nature of the environment lower the rent considerably.
The classes of residential apartments commonly found in these areas are mostly blocks of 1, 2 or 3 bedroom flats. The rents here have also climbed to as high as N1.5m, N2.5m and N3.0m for 1, 2 or 3 bedroom apartments respectively despite the fact that the road networks within some of the layouts in these satellite towns are not tarred. There is also a high level of security threats.
Whichever location one has chosen in Abuja the high rent challenge manifests painfully. Sadly, the rent continues to rise on regular basis
As a result of this disturbing scenario and worrisome economic situation, many people are pushing for rent regulations as a measure to scale down the hyper rental situation
The big question is, will rent control or regulations be able to curb the incident of rising rentals in Abuja?
Rent control involves pegging the residential apartments rents at a cost, the landlords, agents and other vendors cannot go beyond to ensure fairness and socio-economic development
There are challenges inherent in adopting rent control measure. Government does not own any class of residential apartments and therefore cannot easily control what the property owner charges in order to recoup his investments within a stipulated time frame.
It’s important to note that high rents are caused by certain economic factors such as inflation, exchange rate, cost of building materials, cost of land, difficulties in acquiring land and a host of others. Rather than rent control, the above mentioned factors that influence high cost of residential property developments should be the focus.
Besides, more layouts should be opened, serviced and allocated en-mass to ease the pressure on the high demand for the few available lands and house . Conscious efforts should be made to create an environment that would bring down the cost of other inputs in building development like cement, iron rods and other buildings materials.
Social Housing Schemes by all tiers of government should also be considered. Governments at all levels should consider building low-cost homes that would cost much to acquire
In addition, mortgage arrangements should be put in place at a single digit interest rate to enable those with verifiable and regular income buy houses and pay installmentally through deductions at source from their salary.
Government may consider the introduction of taxes on vacant houses prevalent in Abuja to enhance house supply. It’s illogical to build a house with legitimately earned income and leave it vacant for a long time without making conscious effort to give it out for rent to recover his or her invested funds.
Rent control measure is not sufficient in itself but rather could create artificial scarcity that may worsen the situation Holistic economic measures targeted at cushioning the rising cost of houses and reducing the encumbrances of acquiring land and ensuring its development should be a more preferable option
