In recent times, Nigeria has witnessed a significant surge in rental prices for self-contained rooms, with rates reaching as high as ₦1 million per annum. This escalation is closely linked to the country’s rising inflation, which has profoundly impacted the real estate sector.
As of June 2023, the National Bureau of Statistics reported an inflation rate of 22.79% . This persistent inflation has led to increased costs for building materials, labor, and land, thereby driving up construction expenses. Consequently, property owners are compelled to raise rental prices to offset these heightened costs.
Data from Nigeria Property Centre indicates that the average price for a self-contained unit in Nigeria is approximately ₦1.3 million per annum, with prices varying based on location, size, and amenities . Similarly, PropertyPro.ng reports an average rental price of ₦800,000 for self-contained units, with the most expensive listed at ₦45 million and the least expensive at ₦30,000 .
The inflationary trend has not only affected rental prices but has also altered supply and demand dynamics in the housing market. Investors and stakeholders are now tasked with developing strategies to mitigate the adverse effects of inflation on the real estate sector .
The surge in rental prices for self-contained rooms in Nigeria underscores the broader economic challenges posed by inflation. As construction and living costs continue to rise, both property owners and tenants must navigate the evolving landscape of the Nigerian real estate market.
