The Dynamics of Office Rents in Garki Area of Abuja, Nigeria

Abstract

This study examined the dynamics of office rents in Garki area of Abuja, Nigeria. Primary and secondary data were utilised 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. Appropriate statistical techniques were used for data analysis. The study revealed that real GDP growth and vacancy rate are the major drivers of rental growth in the office property market in Garki as they account for about 77% - 88% of the variation in office property rents in the commercial property market in the area. Also, Rental index for office properties in the study area using 2001 as the base year indicates progressive upward movement in rental values of office properties in the city within the study period.