How is the rental market changing in Nigeria?
Easing COVID-19 restrictions and the naira depreciation have increased demand for rental housing in Nigeria, inflating the market gradually over the last few months. The Russian-Ukraine war has also caused Nigeria to have a limited power supply and a drastic increase in diesel prices.
Prices at an all-time high of 780 NGN per liter of diesel, a commodity that has a big impact on the industrial and business activities in Nigeria. This exponential increase in diesel prices escalated service charge fees in rents. The service charge for diesel power supply is now paid as a deposit and, if the diesel price increases in the next month, tenants are expected to increase their rent payment.
According to sources, locals and expatriates are nervous about the potential violent situation that may occur during upcoming elections in January and February 2023. During this time, some expats may return to their home countries, which could cause the rental market to deflate until they return to Nigeria in April or May.