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Property owners under pressure over changing demand trend

CHUKA UROKO Business Day
Property owners under pressure over changing demand trend - property owners - property market


One of the highpoints of the challenges in the property market is the sobering experience which stakeholders have garnered, particularly landlords who are now becoming a lot more realistic in their charges and demand for advance payment.



What has become the norm in the market in the new year, is one-year-rent advance payment which most landlords of upper end properties are ready to accept. Analysts estimate that about 60 percent of rental transactions so far closed, are cases of landlords accepting one year rent, noting that it is the new trend.

The irony of this trend, which shows that the Lagos State government’s rent law is not working, is that it is happening in areas which are exempted from the one-year-rent rule, including Victoria Island, Ikoyi and Lekki, among other highbrow neighbourhoods.

The analyst observe that low market activity, which peaked in 2010, was not because there was no demand, but rather because prospective tenants could not afford the going rates, adding that the increased demand that the market recorded in 2011 was because landlords and the tenants had become a lot more realistic.


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