Between Abuja and Lagos: Insights of Price and Value in Residential Real Estate
Nigeria’s most prominent real estate markets are Lagos and Abuja. Between the years 2011 to 2015 saw unusually steep prices and pronounced vacancies in Abuja’s high-end residential segment compared to Lagos’. This discrepancy suggests market differences which are deserving of investigation. This paper, therefore, comparatively examines these two markets by exploring the economic concepts of price and value which sustain the market system. The data was sourced by a questionnaire administered to estate surveyors and valuers as well as the asking prices from property archives. The main finding of this paper is that Abuja’s prices and rents significantly exceed Lagos’ despite it being a less economically productive city. One can conclude that the Lagos market is more resilient while Abuja’s buoyancy is more apparent than real.