Abuja: Many Houses, No Tenants • Changing Face Of A Federal Capital - Properties

http://tribuneonlineng.com/abuja-many-houses-no-tenants-•changing-face-of-a-federal-capital

May 1, 2016

CHRISTIAN OKEKE, in this report, writes that while many remain homeless in the Federal Capital Territory (FCT), many exotic houses, mostly at upscale areas, remain unoccupied years after their completion.

GOING by available statistics, Abuja, the Federal Capital Territory, alone accounts for 10 per cent of the 17 million housing deficit in the country. The situation persists despite the fact that many mansions dot the landscape of the territory uninhabited.

The houses, which have been completed but remain unoccupied, are scattered across some districts, many of which are located in private housing estates.

Indeed there are a number of issues and insinuations associated with the empty buildings. One of such is that the owners, could have embezzled public funds and laundered them on acquisition of properties.

Other insinuations associated with the unoccupied buildings are that some of the owners kept cash in them to evade moving stolen funds through banks and that the buildings are owned by some past and current public office holders who did not have real needs for such properties but had to acquire them using looted funds.

Many residents fear that the unoccupied houses pose security threat. They refer to situations in the past when security agents had to invade such structures to possibly seize outlawed materials or forestall usage of such properties for criminal purposes.

But the fact remains that the sight of these structures rekindles anger in the minds of the poor, as well as low and middle income earners in the territory. Their anger stems from the fact that such gigantic structures were left to rot away while they pay through the noses for accommodation.

Residents are not the only ones showing concerns in this regard. Even the FCT administration had on several occasions raised the alarm over the number of uncompleted buildings and empty estate buildings in the city and currently plans to set up a committee to look into the issue.

The administration is certainly not stopping at that as it has also given the indication that it may soon come up with a law that would force down the current high cost of accommodation.

FCT Minister, Muhammadu Bello, had personally expressed anger over the current situation and even questioned the rationale behind payment of rent on accommodation on an annual basis in the country. He told estate surveyors who were on a visit to his office recently that the present administration under President Muhammed Buhari is deeply concerned about the high cost of accommodation in Abuja and is working on measures that would guarantee access to decent accommodation.

During the meeting, he wondered why in developed countries such as United Kingdom and the United States, tenants pay rent on a monthly or even weekly basis while reverse is the case in Nigeria.

Be that as it may, investigation by Sunday Tribune revealed that the houses remain empty for a number of reasons. Some residents and developers gave divergent views on why the houses remain unoccupied years after their completion.

It was gathered that developers, in some cases, declined to sell or rent the structures due to low offers. The developers, according to investigations, put into consideration the high cost of the investment before fixing rates.

According to a resident, John Uwakwe, the belief among many residents is that the rents for the houses are naturally going to be on the high side. He said that explains why they are too afraid of getting closer to have a look-in, let alone making offers.

It was revealed that such estate developers are not really bothered that their structures have been under lock years after completion, provided they have not seen anyone who paid the price already fixed as rents.

At one of the estates located at Apo, Sunday Tribune could not meet the developer on site but one of the engineers who gave his name as Ibrahim said the high rent on the houses are justified. According to him, as investors, the developers must factor in the cost of purchase of the land as well as the exorbitant cost of building materials so as to recoup their investments. He said the owners will simply not rent out the houses at a loss.

According to an investigation conducted by Sunday Tribune at the Development Control Department of FCT Administration, there is already a plan to include a clause in building approvals issued to mass housing developers which would compel them to rent out the structures not later than six months after completion. Sunday Tribune gathered that part of the condition for granting such approvals is that construction should begin within six months and be completed two years after.

Sunday Tribune could not get the director in charge of the department to comment on this as of press time, but an official who pleaded anonymity stated that the department was satisfied that many of the houses in the city remain occupied. He said those which remain unoccupied were constructed in mass housing estates.

A resident, Oluwadamilola Taiwo, told Sunday Tribune that the Abuja property tax bill which the Senate passed in June 2014 is an instrument that will compel property owners to rent out their houses when eventually signed into law.

Speaking on the increase in rent which the empty houses had generated, the Chairman, Senate Committee on FCT, Senator Dino Melaye, said “the Senate was planning to organise a public hearing on that soon and already we have communicated to the Senate President, Bukola Saraki on it.”

He stated that the upper chamber of the National Assembly would bring together stakeholders including landlords, tenants and government to review the housing and rent laws and look at the possibility of coming up with a rent control system which will make it impossible to review rents till after five years.

The question which remains unanswered, however, is: “when will Abuja’s empty housing estates serve useful purposes?”