Modelling the Office Rental Market in Selected Districts of Abuja, Nigeria

Abstract

This study examined the drivers of office rents in selected districts of Abuja, Nigeria. These districts are Asokoro, Maitama and Utako. Primary and secondary data were utilized for the study. Primary data obtained for the study include office rental levels and office space data in the study area for the period, 2001-2012. Secondary data for the study were obtained from the National Bureau of Statistics (NBS) and the Central Bank of Nigeria (CBN) and are mainly macroeconomic variables in Nigeria for the period, 2001-2012. Using single - equation regression analysis, the office rent model developed accounted for 76%, 72% and 75% of the variation in office property rents in the commercial property market in Asokoro, Maitama and Utako districts respectively. The study also revealed that real GDP growth and vacancy rate are the major determinants of rental growth in the office property market in Asokoro and Maitama districts while real GDP growth is the major driver of office rents in Utako district. Also, Rental index for office properties in the study areas using 2001 as the base year indicates progressive upward movement in rental values of office properties in these districts within the study period.

Keywords: Office Rental Determinants; Office Property Market; Office Rent Model; Nigeria