High Rent, Low Disposable Income Force Tenants To Move To Suburbs

Residents of Lagos State and Federal Capital Territory (FCT) have decried the astronomical rise of home hire within the territory which has left many households with the ordeals to relocate to suburbs, boundary communities and hinterland for shelter.

In the meantime, some landlords who spoke to LEADERSHIP blamed the hire ordeal state of affairs on the present state of the economic system whilst they said that the excessive value of constructing supplies and reinforcements used for the development, as upkeep of buildings are now not inexpensive in Nigeria. As a result of a constructing goes by way of upkeep all through its lifespan, some landlords say it’s now not a simple process.

Checks by LEADERSHIP present that, rents in Lagos have now reached an all-time excessive with a self-contained Mini flat costing as excessive as N800,000 to N1 million whereas a two-bedroom residence is now given out at N1.5 million to N2 million, relying on the situation within the metropolis centre.

The state of affairs will not be unconnected to the rising inflation within the nation, in addition to the rising value of constructing supplies, which has compelled many landlords to extend their rents arbitrarily.

It has subsequently led to many households and households relocating to different suburbs and outskirt communities like Arepo, Mowe, Ifo, Sango, Ikorodu, Akute, Magboro the place the rents are decrease and barely inexpensive.

Findings by LEADERSHIP correspondent who spoke to some tenants and landlords in Lagos, Ogun States and FCT shared their views on the present value of hire within the territory.

A tenant, Wale Sowemimo who’s a civil servant in Lagos, advised LEADERSHIP how the hire for his Two-bedroom residence was raised from N500,000 to N1.5 million throughout the area of six years.

“I received into this one-bedroom flat in 2019 January, and I used to be paying N500,000 as annual hire. Quick-forward to January 2025, I’m now requested to pay N1.5 million which is a rise of over 100 per cent.

We as tenants tried to know the rationale behind that however our landlord stated anybody who can’t keep ought to depart. The state of affairs is simply horrible, he stated.

One other civil servant who spoke on situation of anonymity advised LEADERSHIP he can now not afford to pay his hire because of his low disposable revenue whilst he plan on transferring to suburbs and growing rural communities in Ogun State to allow him entry inexpensive accomodations for his household.

One other tenant, Emmanuel Ugbekile who lives inside Ajuwon/Akute boundary of Lagos and Ogun State stated the lowest-priced self-contained room within the space value N700,000 whereas a Two-bedroom flat goes for as excessive as N1.5 million.

He stated, “Instantly the administration accomplished the Ajuwon highway and bridge linking in direction of Ojodu Berger the worth of hire would enhance once more. Prior to now, a one-bedroom Mini flat might value about N350,000 however now, should you don’t have from N800,000 upwards, overlook about it, as a result of even with N1 million you’ll wrestle to get a cushty home.

“Extra irritating is the truth that apart from the hire, brokers take inspection payment and company payment from you which ones is about 10 per cent, caretakers take authorized charges and others and on the finish of the day, you end up paying so very a lot.”

Equally, a tenant in Ogba whose title is Kelvin Nwosu, additionally advised LEADERSHIP that this 12 months shall be his final 12 months staying in Ogba as he plans to maneuver to both Mowe or Magboro to seek out cheaper lodging.

“I first rented a two-bedroom home in Ogba in 2018 for which I used to be paying N1 million as hire per 12 months. However earlier than I even entered the home, the company, inspection and authorized charges raised the quantity to about N1.7 million. Simply final December our landlord despatched us a discover growing our hire from N1 million to N2.5 million.

“As I’m talking to you now, I’ve requested my brother to search for a home for me both in Mowe, Arepo and Magboro axis as a result of my household is rising and my spouse simply gave delivery. I can now not dwell in a one-bedroom flat and I can’t afford that ridiculous quantity in Ogba” he stated.

One other tenant in Jahi District of Abuja, Sabena Daniels, advised LEADERSHIP that the owner of the self-contained room, for which she is paying N1 million, has now despatched a discover growing the hire to N1.8 million with a menace of eviction by subsequent 12 months.

“The rise stunned me owing to the truth that I wasn’t even as much as a 12 months in the home. The worst half is even areas like Kubwa, Lugbe and others the place one is pondering that hire shall be cheaper, it’s now not low-cost,” she famous.

In the meantime, some landlords who spoke to LEADERSHIP blamed the precarious state of affairs on the present state of the economic system which has made issues tough for them.

A landlord, Uche Kalu, who owns a rented residence in Mabushi complained that “the price of erecting a brand new constructing in Abuja has gone up by over 200 per cent from what it was some months in the past, and sustaining the previous ones has additionally been very tough.

One other landlord with a rented residence at Kubwa Section 4 stated, landlords shouldn’t be blamed however the authorities.

“Main constructing supplies similar to, sand, cement, granite, concrete, wooden, Plaster of Paris (PoP), glass, paint and plumbing supplies at the moment are past the attain of the odd man.

“A 50kg bag of cement, as an example, is now offered for between N10,500 and N11,000, which is greater than 3 times what it was offered previously. Inform me how we landlords will survive?,” he stated.

Requested why landlords allowed brokers to gather company, inspection and authorized charges, one other landlord, Brilliant Bamidele stated, most landlords interfaced with their tenants by way of attorneys.

“As professionals, these attorneys additionally cost authorized charges for any tenancy settlement. As for the brokers, most of them do this on their very own accord not essentially assigned by the owner. A lot of the brokers feed from these company charges, therefore, that’s why the state of affairs is like that and the landlords can’t do a lot about it,” he stated.

Reacting to the event, the immediate-past nationwide president of the Actual Property Builders Affiliation of Nigeria (REDAN) Aliyu Wamakko, blamed the excessive value of constructing supplies for the skyrocketing hire.

He stated: “There’s nothing that has not risen out there, together with the worth of meals objects. So, the rising value of hire is what we’re experiencing now due to the financial downturn. It’s essential to perceive that about 90 per cent, of constructing supplies are imported. So, how do you count on inexpensive hire?

“What can be taking place with the trade charge, which is a serious determinant within the importation of those supplies: So, the problem is simply an excessive amount of.

“One other difficulty is that REDAN handed a Invoice to manage actual property follow in Nigeria in order that it could solely be dealt with by professionals, sadly, it couldn’t get presidential assent, so, that’s the reason we’re the place we’re at present,”

Additionally, the chief director of the Housing Growth Advocacy Community, Barr. Festus Adebayo, famous that, one of many main points relating to hire in Abuja is the truth that there isn’t a regulation regulating hire within the FCT.