Development of properties in Abuja, including estates, private apartments and plazas, is experiencing significant growth, with some experts attributing the boom to various factors including illicit financial activities.

Checks by Daily Trust also revealed that foreign remittances are also a major factor responsible for the boost in property business in the Federal Capital Territory (FCT).

Real estate professionals also pointed to Abuja?s population growth as a key driver of property development in the city.

They said the influx of more people into Abuja, especially those who relocated from their home states of Kogi, Katsina, Kaduna, Borno, Benue and other states in the South due to attacks terrorists, and others who have moved into the FCT for political patronage, is encouraging developers to invest more in the city.

A realtor, Bright Tochukwu, stated: ?The population of Abuja has no doubt grown as people are coming on a daily basis. So, developers have to build houses where the growing population of Abuja will also stay.?

The Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) had raised concerns over the use of real estates as a vehicle for laundering illicit funds. Both agencies had flagged the proliferation of unoccupied estates and high-value properties in Abuja, Lagos, and Port Harcourt as possible fronts for laundering illicit wealth.

A former chairman of the ICPC, Bolaji Owasanoye had, while appearing before the House of Representatives ad hoc committee investigating operations of real estate developers in the FCT in 2021, said corrupt public officials hide under the guise of real estate investments to conceal ill-gotten wealth.

Only recently, the EFCC handed over 753 seized duplexes and apartments in Abuja?s Cadastral Zone to the Federal Ministry of Housing and Urban Development. The properties, which were recovered from a former Central Bank Governor, Godwin Emefiele, are to be repurposed for public housing.

The Minister of Housing and Urban Development, Ahmed Dangiwa, said the handover was in line with President Bola Ahmed Tinubu?s directive that the recovered estate be completed and made available to the Nigerian public through a transparent and accountable process.

He said the housing units would be offered for sale through a transparent and competitive process that would be widely advertised and managed via the Renewed Hope Portal.

?Together with the EFCC, we will work to show that the fight against corruption can deliver real benefits?turning looted assets into liveable homes for Nigerians,? the minister stated.

How foreign remittances boost property biz

Investigations by Daily Trust showed that aside from money laundering, foreign remittances have significantly contributed to the real estate boom.

Nigerians in the diaspora are said to be investing heavily in Abuja properties as part of long-term plans or retirement strategies. Some developers, it was learnt, often tailor their projects to attract diaspora clients, offering flexible payment plans and remote purchase options.

A developer, who does not want his name in print, told Daily Trust that he had handled property acquisitions worth hundreds of millions of naira in the last two years on behalf of friends and relatives living abroad.

?Nigerians abroad always send money home so that we can help them to buy properties. I bought plots of land for some and houses for others. All these ran into hundreds of millions of naira. This was in just two years,? he said.

Another realtor, Mr. Olalekan Oladepo, in a chat with Daily Trust, said: ?These diaspora investors see investment in properties in Abuja as a stable store of value, further increasing investment inflows into the sector.

?That is to tell you that not all the houses you are seeing in Abuja are owned by people living in Nigeria. They are owned by people who see a lot of sense in sending large sums of money back home to purchase properties as long-term investments or retirement plans,? Oledepo said.

This was corroborated by a civil servant who said his brother in South Africa sent him millions of naira to purchase a property in Abuja?s Kubwa area.

Mr. Sam, who is into property in Abuja, added that some Nigerians living abroad also send their money back home to buy property as ?the best security for their hard earned money.?

He said, ?Many people lose their hard earned assets abroad whenever they have marital issues?The laws tend to favour the women in most cases, therefore, those that are smart procure a lot of property here.?

An estate surveyor, Kolawole Clement Abejide, also attributed the boom to an influx of people seeking economic and political opportunities in Abuja. He said expanding infrastructure in districts such as Gwarinpa, Galadimawa, Apo, and Idu has spurred massive development in these once-remote areas.

A former lawmaker said he found a veritable source of income after serving at the National Assembly.

?After every election season, you will see massive search for houses both for rent and outright purchase because of the attrition rate in the National Assembly. New lawmakers are elected and many of them take loans from the banks to buy house, so, some of us make a lot of money around that time,? he said.

Property market not regulated, says ex-REDAN president

A former president of the Real Estate Developers Association of Nigeria (REDAN), Aliyu Wammako, told Daily Trust that the unregulated nature of Abuja?s property market had made it a haven for money laundering.

He said during his tenure, REDAN collaborated with anti-graft agencies to draft the Real Estate Regulatory Council of Nigeria Bill, which was passed by the 9th National Assembly, but was not assented to by President Tinubu.

He said: ?Section 11 of Money Laundering Act and Terrorism clearly states that anyone who illegally acquires, uses, retains or takes possession or control of any fund or property, knowingly or reasonably, ought to have known that such fund or property is, or forms part of the proceeds of an unlawful act; commits an offence of money laundering.

?The EFCC?s special control unit against money laundry and the NFIU sat with us when I was REDAN president to find ways of tackling this.

?Subsequently, before my tenure ended at REDAN, we crafted the Real Estate Regulatory Council of Nigeria Bill 2023 which is targeted at fully regulating the sector and also curtailing money laundering in the country. It had inputs from all the regulatory institutions, including all the state commissioners, all the professionals in the building industry were part of the drafting and was eventually passed by the 9th National Assembly and later transmitted to President Tinubu, but he declined assent.?

The Chief Executive Officer of Cipriani Limited, a real estate firm, Segun Maku, noted that the growing number of middle class Nigerians in Abuja, rising urbanisation and investment opportunities are boosting the property market in Abuja.

He said, ?As more people move to the city for work, education and other opportunities, the need for homes, offices and other properties rise. Similarly, Abuja?s status as Nigeria?s capital and economic centre attracts businesses, investors and residents. The city is home to many government institutions, businesses and organisations, creating a high demand for properties.

?Increasing disposable income and changing lifestyles fuel demand for quality housing. As more people join the middle class, they seek better living conditions, driving demand for modern, well-designed properties. These factors combined create a thriving real estate market in Abuja, with opportunities for property developers, investors and home owners.?

A real estate expert, Musa Babayo said: ?I have lost count of the number of property developers as everyone just wants to buy land in Abuja and sell to people at ridiculous prices.?

Sharing his perspective on the issue, an estate surveyor, ESV Kolawole Clement Abejide, noted that the demand for commercial and residential properties has been on the increase in recent times.

?The economic and political opportunities that are inherent in Abuja have continued to draw people and professionals from all walks of life to Abuja which has led to exponential demand for both commercial and residential houses in Abuja,? he said.

He said infrastructural development by the government is also scaling up real estate activities in Abuja.

The construction of new roads, bridges and other infrastructural landmarks in Abuja has aided real estate activities in the Nigerian capital city. Places that were hitherto considered outskirts of the city are now being developed due to the availability of government activities in those areas. Gwarimpa, Galadimawa, Apo and Idu districts are examples of such new cities within the Abuja metropolis that are being developed,? he stated.

?Insecurity forced us to relocate to Abuja?

Some residents told Daily Trust that the security challenges in their home states forced them to relocate to Abuja.

One of them, Ojochenemi Ameh, said: ?I came from a community close to Idah in Kogi State and my community has been under attacks by terrorists. Out of fear, we decided to leave the town and our closest option was the Federal Capital Territory.

?Through the help of my friend, we were able to get an accommodation in one community in Gwagwalada Area Council where I and my children are staying. The community, though small, is experiencing housing development as people are gradually coming to build their homes.?

Muhammad Jauro, an indigene of Batsari Local Government in Katsina State, who resides at Karu area of the FCT, said due to constant bandit attacks in Katsina communities, he relocated his family to Abuja.

Similarly, Nonso Daniel, from Imo State, said: ?You know very well that the South East, especially Imo State, has witnessed violence due to the sit-at-home policy by the Indigenous People of Biafra (IPOB) which has seen many businesses crumble.

?So, I sat down and thought about it and decided that my best bet was to come to Abuja and re-establish my business because I know the security in the federal capital is good to a large extent and that was how I found myself in Abuja.?

Ene Gabriel, from Benue State, said she first came to Abuja in 2020, after a crisis erupted in some parts of the state and since then, she has not gone back.

In an interview with one of our reporters, the spokesman of the EFCC, Dele Oyewale, explained that the commission had always engaged members of the real estate association to curb the menace.

He called on Nigerians to collaborate with the EFCC by providing substantial information on how some highly-placed individuals and the real estate companies perpetrate the acts that are capable of undermining Nigeria?s economy.

?Yes, the real estate companies are springing up everywhere, and we have always said it that real estate is one avenue where fraudsters are using to launder money, we?ve always been saying it.

?Any matter that is reported to us, or any matter that our intelligence and investigation show to be related to that, we deal with them the same way we deal with any other economic issues.

?So, we rely on information from the public, and we also rely on our intelligence, and whenever we come to a conclusion that such a thing is a product of money laundering, we take appropriate actions.

?We will invoke appropriate laws to deal with it. Besides, we?re talking to the real estate association, all the practitioners and their stakeholders, we?re engaging them that they should put their house in order.

?They have been told that the EFCC will not hesitate to invoke the appropriate laws to deal with any reported act that is found to be related to that (money laundering),? the anti-graft agency?s spokesman told Daily Trust.

On his part, when contacted, the spokesman of the ICPC, Demola Bakare, promised to get back to our correspondent, but was yet to do so as at press time.

Cost of properties in high, lowbrow areas of Abuja

The Federal Capital Territory provides housing needs for the rich, middle and low class in different locations. Major choice locations where wealthy Nigerians reside include Maitama, Asokoro, Guzape, Jabi, Gwarinpa, Jahi, Wuse, Katampe, among others. In some of these places, properties are sold for as high as N1 billion and above.

According to a realtor, Tonia Mbah, landed and built properties in Guzape and Jahi, cost as high as N4 billion.

Guzape: It is an emerging luxury neighbourhood located near Asokoro to the north, Apo to the south, Gudu to the west and Garki to the north-west of the FCT. It is becoming popular for its modern villas, high-end residential developments and breathtaking views of the city, providing both serenity and exclusivity for Abuja?s wealthiest residents.

Some of the developments located in this area cater to the elite?s desire for serene, exclusive environments, with amenities.

According to Property Pro, a website that analyses the cost of properties, prices of buildings in Guzape range from N3.5 billion for a mansion villa on a 3,000 square metres plot of land.

Maitama District: It is one of the most prestigious and sought-after neighbourhoods in Abuja. It is known for its high-end properties, and the area is home to many high-ranking government officials, diplomats and influential business figures.

Some luxury developments in this area feature luxury mansions, apartments, and penthouses, catering for the elite?s desire for exclusivity, security and premium amenities like private pools, gyms and expansive gardens. Properties in Maitama range from N2 billion to N7 billion for a three-nine bedroom mansion, it was gathered.

It was also observed that recently, some of the ?old buildings? occupied by the elite of the past are being demolished and replaced with other sophisticated buildings.

Asokoro District: This is also a high-end, highly secured neighbourhood located in Phase One of Abuja. Often described as ?Abuja?s most exclusive district for luxury living,? Asokoro District is known for its state homes, luxury villas and proximity to the Presidential Villa and key government offices.

The neighbourhood is populated by politicians, government officials and foreign diplomats. It has luxury properties showcasing high-end living with state-of-the-art security and spacious layouts. Many of these properties also come with panoramic views of the Abuja cityscape.

In Asokoro, land is sold for as high as N4 billion depending on the plot size; while prices of houses? range from N2.5 billion to N5 billion for a five-seven bedroom mansion.

Wuse District: It is a metropolitan district located in the Abuja Municipal Area Council (AMAC). Wuse is a major commercial and residential hub in Abuja. It is a mixture of luxury apartments, high-end hotels and premium office spaces. The area offers a blend of high-scale residential living and convenient access to Abuja?s commercial areas, making it a prime location for professionals and expatriates.

According to a realtor, Musa Babayo, prices of properties in Wuse 11, range from N500 million to N2 billion.

Katampe: Katampe is also another high rise area in the FCT. Babayo told Daily Trust that prices of properties in this area range from N850 million for a five-bedroom detached duplex to N1.5 billion

Jabi: It is a high-end residential and commercial area. It is a serene and developed district in phase 2 of Abuja and is located near the districts of Kado in the north, Utako in the east, Dakibiyu to the south, Life Camp to the west and Gwarinpa to the northwest of the city.

Jabi provides a modern urban lifestyle, featuring luxury penthouses, waterfront living and exclusive residential amenities. The neighbourhood is experiencing an increase of high-end residential and mixed-use developments that cater for affluent residents seeking a comfortable lifestyle.

The cost of properties in Jabi district ranges from N700 million for a semi-detached duplex to N1 billion for a six-bedroom fully detached duplex.

Gwarinpa District: It is another household name in Abuja, characterised by its strategic location. It is bordered by Katampe, Jahi, Kado, Jabi, Life Camp, Karsana, Dawaki and Kubwa. The district is increasingly attractive for residential and commercial developments, leading to rising property values.

Gwarinpa houses the largest single housing estate in Nigeria and recently evolved into a luxury real estate area. It was once considered a middle-class neighbourhood, but now, it features high-end communities and luxury villas such as Gwarinpa Estate Villas.

Prices of houses in Gwarinpa range from N600 million to N1.2 billion depending on the size and location of the property.

At Garki, though considered as part of the older areas of Abuja, the cost of properties has also seen significant increase. For instance, from 2015 to 2020, properties in the district, ranging from four-bedroom to six-bedroom duplexes were in the range of N150 million to N300 million; but are between N400 million and N900 million currently.

The case is similar at Wuye. With the recent construction of a flyover bridge that links the area with the Central Business District and other locations, prices of properties have experienced a significant hike.

Daily Trust was told that properties at Wuye, especially duplexes, ranging from five to seven bedroom, are valued between N800 million and N1.5 billion. Rents at the district have gone high with a one bedroom flat going for between N2.5 million and N3 million.

Lowbrow areas

In some Abuja suburbs like Kubwa in Bwari Area Council, with between N45 million and N100 million, one can purchase a three-bedroom depending on the location. At Bwari town, with N40 million, one can get a two-bedroom flat apartment, Daily Trust gathered.

At Lugbe, located along the road to the Nnamdi Azikiwe International Airport, a four-bedroom semi-detached duplex goes for about N75 million; while at Apo Resettlement, N115 million can purchase a three-bedroom terrace duplex with a room ?Boys? Quarters?.

At Idu, a five-bedroom fully detached duplex, according to Property Pro, is sold between N250 million and N300 million.

Cost of plazas skyrockets

Similarly, Daily Trust gathered that even plazas and commercial properties in Abuja are not left behind in terms of high cost of purchase.

This is just as many attribute the existence of empty plazas and malls to high cost of rent and low patronage.

A realtor, Musa Babayo, told Daily Trust that in Kubwa, Garki and Apo, renting a shop which before cost between N500,000 and N600,000 now costs between N2 million and N3 million per annum.

Outright purchase of shops in plazas in these locations, which usually cost between N1.2 million and N4 million now costs between N10 million and N15 million.

Similarly, renting a shop at Wuse 2 and Central Business District as well as Asokoro which cost between N1 million and N2 million in the last five years now costs between N3.5 million and N5 million. It was gathered that it could cost one up to N30 million to buy a shop in those locations. Ditto for Jahi, Wuye, Gwarinpa and Life Camp.

Daily Trust gathered that renting a square metre at some Abuja malls costs close to N1 million a year in the busy area of Wuse District.

?Abuja properties overpriced?

A town planner in the Federal Capital Territory, Mr. Olu Johnson, while speaking to Daily Trust, noted that politicians and elite have made properties in the city centre overpriced and out of the reach of the middle class.

?If you look at Abuja today, you will realise that cost of properties are just going up for no reason. And the percentage increase is outrageous. Some have witnessed up to between 300 and 500 per cent increase both on rentals and properties on outright purchase.

?The major reason is that some people who want to launder money go for properties. Anything you tell them; they can pay. So the developers cannot go down in prices and this is not good for a country that wants to prioritise affordable housing

?Compared to what is obtainable in states, prices of houses in Abuja remain over the roof top,? Johnson said. (Daily Trust)

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