Investors smile as price bubbles in Damaturu

Residents in Damaturu, the capital of Yobe State had between 2011 and 2014 witnessed large bangs of explosions and gunshots as a result of Boko haram insurgency, which claimed many lives and properties worth billions of naira. At that time, many were hopeless, believing that peace and normalcy could not return in the near future […]

Residents in Damaturu, the capital of Yobe State had between 2011 and 2014 witnessed large bangs of explosions and gunshots as a result of Boko haram insurgency, which claimed many lives and properties worth billions of naira.
At that time, many were hopeless, believing that peace and normalcy could not return in the near future and therefore, disposed their houses at crumbled prices while those who bought the property were merely taking risks as darkness continuously enveloped Damaturu.
But when the attacks subsided, normalcy gradually returned, rekindling the hope and confidence of buyers that bought up properties in the heat of the insurgency.
Now, house owners who sold their properties began to return in despair, aware that the “speculators”, who for sometime acquired their properties are already thinking of the better days ahead.
“Many of them returned without shelter for their families. They pleaded with us to convince the buyers to re-sell back to them. But the buyers let out the houses at high costs to some interested returnees,” a property agent, Yakubu Audu Maje explained.
He said majority of the property owners sold them off at give-away prices and fled to safe locations within and outside the state capital.
 “Many of them used the money to rent accommodations in Kano, Jigawa and Katsina while those that are affluent went and bought properties elsewhere,” he said.
Another property agent, Malam Usman Ustaz stressed that the property owners disposed them at give-away prices and now they are living in rented houses in their former locations.
“A house owner at Layin PS sold it for N500,000 at the heat of Boko haram crisis. He offers to rebuy the same house for N1 million, but the buyer refused to sell it. Because the house can fetch up to N1.5 million now,” Ustaz stated.
He noted that many residents in Sabon Fegi, Brabra Housing Estate and other government quarters sold their houses at the peak of the insurgency.
 “I know of a desperate house-owner that sold his two-bed room flat for N1.2 million at Brabra Housing Estate.  He later offered N2 million but was turned down by the buyer. He refused resell it,” he said.
Another property agent, Musa Gidaje who sympathized with the house-owners said, “Many innocent people were cut off by military operations and frequent attacks by the insurgents. Later on, the situation became unbearable and those who could not afford accommodation elsewhere sold their properties to settle rents in safe locations like Kano, Jigawa and Katsina.”
He said many landlords have become tenants in the town, and shop-owners turned shop-boys when they returned because they sold all their investments including the shop buildings.
“I know of a major pharmaceutical products dealer, Agada Genus that sold his house in Jerusalem area and disposed his Genus medicines store at the cost of N9 million. But the buyer turned down his N14 million offer as normalcy returned. This same man sold his very big apartment to another pharmacist that converted it to staff quarters at N5 million, which can cost over N10 million now,” he added.
A former house-owner, Ari Bulama said, “It was a forced decision to sell my home, thinking that it would be a good decision for my family. Thank God we’re still alive and only Him knows why we had to sell it.”
Our correspondent noticed that landlords’ confidence in the buy-to-let business has risen in recent times, believing that it was the anticipated profit and soaring rent that attracted them.
“Majority of the property buyers are top government officials who don’t know where to invest their wealth. I knew of a single person that bought four units of houses in Brabra Housing Estate and he rented them out,” one of the property agents said in confidence.
A property investor, who pleaded anonymity revealed that the average Damaturu house price has now risen by over 80 percent from the sharp decline in 2012.
 “What we  are experiencing here is significant rise in property prices due to growing population because many people have returned. I never thought it would be as profitable as this when I invested,” he grinned.
Findings revealed that annual house rent in Damaturu ranges N150,000 to N200,000 for two/three-bedroom flat in such places like Brabra Housing Estate, Sabon Pegi and other areas of  Damaturu.
Yakubu Maje, a property agent said that the cost of renting a house in Damaturu largely depends on the choice of the client, which is basically divided into lines A, B and C. He said a client that wants a house in Don Etiebet, Dabo Aliyu and Commissioners` Quarters has fallen into line A, which is a highbrow area and the rent would cost N200,000 and above. Line B that includes Brabra Housing Estate and Sabon Pegi costs N150,000 to N200,000.
He said in line C, the rent is cheap because most of the houses in those locations are not standard.
The administration of Governor Ibrahim Gaidam has built three housing estates that include 261 housing units, 300 housing units and red bricks housing estate, accommodating almost 1,000 houses. He distributed them to Yobe citizens on 40 percent discount before the beginning of insurgency in the state.
But checks by our correspondent revealed that the owners disposed almost 20 percent of the houses during the reign of insurgency in the state and the buyers, are smiling for the yields from their risky investments.