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Business News of Saturday, 20 November 2021

Source: www.nairametrics.com

Maitama is the Ikoyi of Abuja, here’s how the highbrow residential market is performing

Maitama District, Abuna Maitama District, Abuna

The Maitama District is located in the North-East region of Phase 1 in the Abuja Municipality, bounded near Aguiyi Ironsi road to the South and Murtala Mohammed Way to the North.

The neighbourhood has a reputation for its large luxury and particularly expensive residential properties. Nonetheless, Maitama is a mixed-use region with a large amount of commercial activity in plazas and standalone shops on streets such as Gana Street.

The region also serves as head office location for Governmental agencies including the Nigerian Communications Commission, National Universities Commission (NUC), the Independent National Electoral Commission (INEC), Central Affairs Commission and the National Youth Service.

It is also home to a handful of European and Asian Embassies including Spain and Belgium.

Similar to Ikoyi, residential properties in Maitama typically fall within the luxury and ultra-luxury segment and are priced in US Dollars.

Maitama is the most affluent neighbourhood in Abuja, and is largely occupied by high net worth individuals including legislators, politicians, business executives, and expatriates.

It is home to some of the prime office, hospitality, and residential buildings in Northern Nigeria including Capital Centrum by Sahara Group, Transcorp Hilton Hotel by the Hilton Group, and Maitama Heights which was developed by Maitama Heights Limited.

In comparison, Maitama is simply the Ikoyi of the FCT, Abuja. Similar to the Ikoyi residential market, the stock of residential properties in Maitama are luxury and ultra-luxury projects, typically priced in US Dollars.

The Maitama region is rapidly expanding, historically attracting investment interest from residential developers who are taking positions within its residential market.

Some of the notable ones include The Shell Staff Cooperative Investment and Thrift Society Limited (COOPLAG) who are the developers of Shell Imani Estate, and a host of private individuals who are also executing luxury projects within Maitama including Peggy’s Pointe and Maitama Heights.

Average 3 bed apartment rent in Maitama is N14,233,966 and the same currently sells for N268,517,500.

So far, Estate Intel is tracking 718 residential (204 completed and 514 pipeline) properties in Maitama.

Based on the data that we have gathered, the average rent for a 3 bed apartment is N14,233,966 and the same currently sells for N268,517,500 representing a yield of 7.14% per annum. Rents and sale prices in the area have grown by 3.8% and -0.7% respectively over the past 5 years.

Land prices in Maitama range from N149,183 to N527,415 per square meter, similar to the achievable pricing in Ikoyi, Lagos.

Based on the data we have tracked historically for Maitama (rents, sales prices, and occupancy rates, etc.), and the number of projects in the pipeline, we believe the Market Direction over the next few years is neutral.

Click here to read the full Maitama Residential Market Analysis, which gives a more in-depth analysis of other market data that we track including; sales and rental rates, yields, supply drivers, stock breakdown, occupancy rate, and information on key contractors who are active in the market.