Office Rental Performance in the Commercial Property Market in Abuja, Nigeria (2001-2012)

This study examined the performance of office rents in the commercial property market in Abuja, Nigeria. Data for the study were obtained from estate surveying and valuation firms which are active in the commercial property market in the city through field survey and comprised rental values of office properties in the city for the period, 2001-2012. The rental growth factor for office properties in Abuja for the period, 2001-2012 was fond tobel.083 1.1197, representing an average rental growth rate of 8.3% - 11.97%. The studied commercial property sub-markets in the city revealed that the various commercial zones in Wuse district experienced higher rental growth prospects than other commercial zones in the city. These are Wuse Zone 2 (11.97%); Wuse Zone 1 (11.61%); Wuse Zone 4 (11.53%) and Wuse Zone 3 (10.97%). The risk ofattaining such growth prospects was also found to be lower in the commercial zones in Wuse district than in any other district in the city. The study concludes that sustained office rental growth in Abuja can attract prudent national and international investors to invest in the commercial property sector in the city where they are likely to gain from positive increase in rental income flows from the sector during periods of economic prosperity. Thus, the policy implication of the study is that the Federal Capital Territory Administration through its relevant agencies should reform its urban property tax laws and policies towards sustained tax benefits of office property rental growth in the city.