Office Rental Performance in the Commercial Property Market in Abuja, Nigeria (2001 – 2012)

Abstract

This study examined the performance of office rents in the commercial property market in Abuja, Nigeria. Data for the study were obtained from estate surveying and valuation firms which are active in the commercial property market in the city through field survey and comprise rental values of office properties for the period, 2001-2012. Results of data analysis revealed that the rental growth factor for office properties in Abuja for the period ranges between 1.083 – 1.1197, representing an average rental growth rate of 8.3% - 11.97% for the study period. Commercial property sub-markets in Wuse district experienced higher rental growth prospects than other commercial zones in the city. These are Wuse Zone 2 (11.97%); Wuse Zone 1 (11.61%); Wuse Zone 4 (11.53%) and Wuse Zone 3 (10.97%). They are far above those of Garki (9.44% - 10.88%); Maitama (10.19%); Asokoro (9.43%); Central Area (8.5%) and Utako (8.35%). The risk of attaining such growth prospects was also found to be lower in the commercial zones in Wuse district than any other district in the city. The study concludes that sustained office rental growth in Abuja can attract prudent national and international investors to invest in the commercial property sector in the city as such investors are likely to gain from positive increase in rental income flows from such commercial properties during periods of economic prosperity.