07/11/2023
NEWS!!
THE FCT MARKET: THE NEW GOVERNMENT POLICY AND HOW IT HAS INFLUENCED THE REAL ESTATE MARKET.
There are palpable fears that lack of clear-cut policy by previous Federal Capital Territory administrators may undermine investors’ confidence in the real estate sector, while professional bodies are seeking increased funding, creation of appropriate structures or re-organization of existing institutions for city planning, provision of basic infrastructure and urban services.
Rising fears have dented the momentum of demand in the real estate market in the Federal Capital Territory (FCT), lowering commercial or residential investments in the housing sector.
I’m sure we are all aware of the development that was heightened by the FCT Minister, Nyesom Wike sending a strong message to property owners of plans to demolish buildings and revoke lands that are not developed, or titles that were illegally obtained from the Federal Capital Territory Administration (FCTA).
Wike told residents, “If you know you have built where you are not supposed to build, it will go down. Be it a minister anywhere, be it an ambassador… if you know you have developed where you are not supposed to, your house will go down.
“And those who have been given Certificate of Occupancy (C-of-O) and failed to develop, and they have become land speculators, the land is gone. I will revoke them.”
Before now, the Abuja housing market had been robust, profit driven and house types have witnessed rising prices, resulting largely from the rise in cost of materials such as iron rods, cement and roofing sheets, which constitute about 5-10 per cent of overall building costs.
In the choice districts, pricing in the high-end market has been aggressive and new construction has been brisk. Selling of luxury units has drawn great attention while those in superior locations commanded strong investor interest.
Currently, there are palpable fears that lack of clear-cut policy by previous Federal Capital Territory administrators may undermine investors’ confidence in the real estate sector as some of the allocated land earmarked as estates for low-income are still locked up by their owners.
Research has shown that land earlier allocated for affordable housing projects were sold to the highest bidders, while low- income earners who couldn’t afford houses close to the city center live in the outskirts, where there are little or no good infrastructures.
While many anticipate a relief from the FCT after the minister’s comment following abuse in the implementation of the masterplan and housing allocations, apprehension hangs in the air like a mist
