Kaduna city with its charming weather and the status of the capital city of colonial Nigeria has all it takes to be a booming hub for real estate development and property business.
But the spates of insecurity rocking the state have crippled the property business, especially in areas like Kujama, Chikun, Goningora, Kaku, Rigasa and Zaria city.
Daily Trust reports that due to the security challenges, property owners in the aforementioned areas have been forced to abandon their homes in suburban areas and relocated to the city centre for safety reasons; renting smaller apartments in safer areas like Barnawa, Narayi, Sabo, Malali, and Unguwan Rimi at costlier rates.
Findings by Daily Trust revealed this development has caused a spike in the prices of houses in the city centre, especially in areas that are less prone to security challenges.
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Our correspondent gathered that a two-bedroom apartment located in Unguwan Rimi goes for as high as N2.2 million, while others on Gwamna road, Unguwan Dosa and Sabon Tasha cost between N600, 000 to N800, 000.
Our correspondent gathered that many residents in the suburban areas who could not relocate to the city centre have put their houses up for sale and have moved to Abuja. It was further gathered that the kidnapping of the train victims and the subsequent closure of the train service prompted many other residents to relocate.
An expert in property, Ikechuku Nnaji of Nnaji O. A. & Co, a professional firm of Estate Surveyors and Valuers based in Kaduna said because of insecurity, people are moving out of Kaduna.
He said, “Insecurity has affected the market value of property in Kaduna and the economic situation has affected the demand. We have a property in Kawo, Kaduna North, which has been on the market since last year and because no one has come to buy it, we had to drop the market value of the house.
“Property in the outskirts is no longer valuable because of the insecurity. However, Millennium city, though a bit on the outskirts, is experiencing patronage. This could not be unconnected to the investments the state government has made in the area.”
He said the value of property has also increased in Barnawa because of the infrastructural development taking place which has increased the value of property.
He appealed to the incoming government to prioritise security and infrastructural development saying, “It will help in boosting the economy of the state.”
Also, the chairman of Nigerian Institution of Estate Surveyors and Valuers (NIESV), Kaduna State, Suleiman Obaito, said the major challenges facing the property sector, especially in the North, are insecurity and economic challenges.
“We should not just look at the security challenges. In the North, we have the security challenges and the economic challenges, so in other places where they do not have security challenges, the economic challenge is there.
He said, in the North, the two major challenges facing the property and real estate sector are security and economic challenges, adding, “The recession, inflation rate and downturn in economic activities are major players in the economic challenges.”
On safe areas to rent or buy houses in Kaduna, he said the suburban areas are the most affected in terms of insecurity.
“Like when you go towards the North, Rigachikun and areas near there, and when you go to the South, anything beyond Sabon Tasha is a serious risk; many people there are moving out. You will see where property owners have abandoned their houses and moved to the city centre to rent smaller apartments.
“The pressure of this situation has put pressure on available houses in the city centre, so when you look at it, we have shortage of smaller accommodation in the city because property owners who leave their houses in suburban areas believe the insecurity is a temporary challenge and so they look for smaller accommodation to rent since they will go back to their houses when the security situation improves.
“Presently, a two-bedroom apartment in Kaduna North and part of Kaduna South in a compound of six flats is as high as N2.2 million,” he said.
He advised anyone planning to invest in the property sector to invest within the city centre, describing it as the best area to invest in because it has less security challenges.
He urged the government to improve the security situation and bring in more private investors, adding, “Every economy that is developing today is operating as a private-driven economy.
“In those days, when we had a lot of industries in Kaduna, nobody knew public servants, but now because the industries are dead, everybody is focused on public institutions. I think the government has to focus more on making our economy more private-driven, creating an enabling environment for the private sector to invest; improving security and making mortgages available because approaching the banks is beyond the reach of the common man.”
Daily Trust reports that many estates are springing up in Millennium city which could be a sign of improvement in the security situation. Also, some residents of the area who had earlier abandoned their homes there are gradually returning.
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