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Recession: Number of Vacant Houses Increase in Lekki & Ikoyi | WATCH

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Nigeria’s real estate sector is going through a tough time as the country grapples with a recession, and a sharply devalued currency.

If there’s one city that’s taken a direct hit, it’s Lagos, the commercial capital. The number of vacant houses, especially at the higher end of the market, has risen sharply over the past year.

Watch CCTV’s report:

35 Comments

  1. EE

    September 15, 2016 at 1:49 am

    They could just drop their prices.

    • nene

      September 15, 2016 at 1:28 pm

      gbam. ridiculous prices and charges for houses in these areas. they’ve always been empty.

  2. Toluwalope

    September 15, 2016 at 3:00 am

    Wondering why the prices haven’t dropped. Although, the basic principles of economics hardly work in Naija, a land of strange things?

    • Temi

      September 15, 2016 at 3:22 am

      I was discussing this with my partner…the housing market should have crashed but then you realise that the money made in Nigeria is mostly not made how traditional economics dictates. I mean I have seen a whole empty estate on this axis my only assumption is that someone with lots of illegal billions of naira has bank rolled this buildings and doesn’t care when they get sold they are “investments” wierd country eeh.

    • Mr. Egghead

      September 15, 2016 at 6:31 am

      That’s basically it. The bulk of money propping up these buildings is dodgy cash so they are not subject to normal D & S laws. Something similar happened in ABJ during the 2015 election. Politicians called for their cash and the house market became a bazaar.
      I feel if this recession persists till circa 2018 (God forbid), those house prices will crash faster than ala d’ala da.

    • Niola

      September 15, 2016 at 10:17 am

      Temi spot on! The principles of economics does not work in Nigeria, simple! The process wont crash and I have long given up hope that the middle income earners will be allowed to purchase homes in these areas because like you have said landlords of these properties have acquired them through ill gotten wealth so obviously they are not backed up by loans with soaring interest rates which of course any sane person wouldn’t have minded given it up at a reasonable amount to make up loan repayments….its really a jungle in Naija sha

  3. wendybendy

    September 15, 2016 at 3:40 am

    everybody done dey go village

  4. Ekene

    September 15, 2016 at 3:41 am

    Same with 1004 flats. So many empty flats, but drop the prices Mba! The price dropped by 5% though, but that ain’t nothing

  5. vora

    September 15, 2016 at 5:16 am

    How wld people with kids cope.things re really getting bad..most pple re withdrawing thier kids from expensive schools..to feed na wahala sef..which way nigeria

  6. Roma

    September 15, 2016 at 9:04 am

    Those complaining of hunger should go back to farming. Enough of the flashing and extravagant lifestyle.

    • Felinda

      September 15, 2016 at 2:12 pm

      Smartest comment every
      People are just sleeping on Farming
      I have my masters degree but i want to quit my corporate job to get into Farming
      Why?? Cos i am smart thats why.
      Folks dont have a clue
      Sit there forming posh

    • Felinda

      September 15, 2016 at 2:12 pm

      i meant “smartest comment EVER” (not every)

  7. parodi

    September 15, 2016 at 9:24 am

    Prices wont crash. Not in Naija. Strange country

  8. Dupe

    September 15, 2016 at 9:31 am

    Let me explain something from own point of view:

    As a nigerian with a US passport, I was on expatriation in Nigeria between 2010 and 2013. I work for TOTAL, and I resided in my all expense paid apartment in Ikoyi. At my residence, there were 3 blocks and 16 apartments in each block.

    This entire complex was leased by TOTAL for their expat staffs, just like many other complexes in the VI/Ikoyi axis.

    Now, being a staff of an oïl company and knowing howing how much the global oïl prices have affected our business, many expats have had to be impatriated back to their home countries ( where staff get to mind their accomodation themselves – CHEAPER FOR THE COMPANY).

    As a fact, all these buildings previously leased by oïl companies and other oïl servicing multinationals have now been vacated thus, they will mostly be empty because most nigérians cant afford them (an apartment of between 2 to 3 bedrooms cost around USD100,000). So you figure that out!

    Infact, last Christmas, I was in Lagos, and the complex i resided in while expatriation was totally empty, not a soul…not even 1 guard man. And there was a big sign on the the FOR LEASE.

    A drive though bourdilon road can attest to the emptiness of most apartments – its quite sad.

    • Mz Socially Awkward....

      September 15, 2016 at 11:12 am

      That mass recall of expatriates is getting realer every day… mehnnn, all production/contracting companies are feeling the pinch in this new oil economy.

      We’re seeing more and more families coming back from the Middle East, Africa, Houston, etc. Posting never even go halfway oh, sudden notice will just appear that it’s time to return to whence they came. Either that or you take a local contract (and of course, in locations like the Middle East, no option for local contracts – an Emirati will just fill the position).

      Plus… we’re also seeing a serious plunge in the housing market here as well, it’s not just happening in Lagos. Every few meters down a street, you find “for sale” or “for lease” signs put up and exactly for the same reasons – companies have given up most of the property they previously retained for staff and the staff themselves are facing job/salary cuts so they’re trying to sell their homes and get out of town. People who once worked as day-rate contractors being paid in excess of £2500 per week (some specialized roles made that in a day), were able to easily afford the high rent of city-centre flats but they’ve now lost their contracts and landlords are ending up with so many empty flats on their hands. A friend at work was telling me about her brother who used to be a senior drilling engineer and bought a 5-bedroom brand new house… then he lost his job about a week after they moved in. It’s been over a year now so what’s he meant to do about his mortgage?

      It’s brutal. Almost like living under the sort of siege the Israelites suffered through during Elisha’s time as a prophet (II Kings 7)… seriously praying that this will end in the same way that famine turned around for good.

    • Crocodile

      September 15, 2016 at 5:53 pm

      Ok. Some of your personal information you gave to make your point are really irrelevant to the point you’re trying to bring home. Just saying.

    • Crocodile

      September 15, 2016 at 5:55 pm

      @Dupe

    • Croco

      September 15, 2016 at 6:54 pm

      Shuttup.

      The background information supports the validity of her statement.

      ?

    • Eh?

      September 16, 2016 at 12:04 am

      I was thinking the same thing. Lollll

    • Eh?

      September 16, 2016 at 12:06 am

      For me it was the passport thing… a bit weird…. but na them sabi

  9. .....just saying

    September 15, 2016 at 10:10 am

    Deji badmus, you left TVC News? Kind o knew you wouldn’t stay there for too long. CCTV news now has a new viewer cos of you. .

    • Busarni

      September 15, 2016 at 1:29 pm

      i dont think he left TVc; kinda freelancing for CCTV.

    • Luu

      September 15, 2016 at 3:47 pm

      He has been with CCTV for a while now. More than a year actually.

  10. Observer

    September 15, 2016 at 10:36 am

    Interesting…..

  11. Ene

    September 15, 2016 at 10:55 am

    Even in V.I. And I don’t think it just started this year. I read an article about 2 years ago in one of the dailies about the cost of accommodation in Banana Island. They even interviewed one of the residents,a young man who said he always hated coming home from school for the holidays because their street was barely occupied.I think supply is more than demand. Many old houses have gone down and service apartments built in their places,with very exorbitant rents(mostly in dollars). Majority of the working population cannot afford to pay such amounts and unfortunately many expatriates have gone back to their countries. I actually think the Government should intervene and work out an arrangement because the mainland is getting more and more densely populated.

  12. Presh

    September 15, 2016 at 11:18 am

    It’s not the recession per say! Most houses in these area has been affordable from the word go. They will prefer to lock it up than rent it below the prices they want. It’s stolen money anyways.

  13. MurderSheWrote

    September 15, 2016 at 11:21 am

    This is small. Come to Maitama. Wicked thieves. Like as if they would go with the money when they drop dead.

  14. Exotique

    September 15, 2016 at 11:24 am

    Cant say why them landlords prefer locking up an apartments than coming down a bit on rent. well, we will see….

  15. Bimbo

    September 15, 2016 at 11:29 am

    Stolen money has been propping up our economy especially the housing sector – these thieves don’t have one investment bone in their body so all they do is buy property.

  16. nene

    September 15, 2016 at 1:27 pm

    these areas have always had a lot of empty houses because of the ridiculous rents and charges

  17. nene

    September 15, 2016 at 1:34 pm

    if they like they shouldn’t knock the prices down. its thief politicians and expatriates that make cost of living high. when somebody will be renting a house in dollars, the landlord obviously isn’t looking for nigerians to live there. rubbish!

  18. Arin

    September 15, 2016 at 2:25 pm

    These houses and apartments are too expensive. I know people abroad who want to buy these properties, but they can’t because of how much it’s going for. I mean c’mon, lai in shey Bel Air, Beverly Hills or Victoria. If converted some of the houses/apartments abroad are cheaper sef. Yall need to bring down the prices.

  19. Adelex

    September 15, 2016 at 2:38 pm

    Dem prices way too high u need to CUT IT!. Singing in OT GEnaisis voice…lols

  20. That-I-May-Fly

    September 15, 2016 at 3:00 pm

    Many Naija people are just rich without visible/credible source of income…when things get tough, many dont have something solid to fall back. I really don’t care about people with big houses in Ikoyi; my sympathy are with the ordinary every day men and women who have taken a bigger hit in this recession, while Buhari and his team continues to scratch their heads over how to save the economy.

  21. Debs

    September 15, 2016 at 3:52 pm

    Come to Oniru extention and see the amount of houses on let/lease. Its amazing. My colg and i discussed about one of the houses that the landlord should even allow us live insead of just letting the house stay empty until the paying owner shows up. lol

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