Property Development

Property development is a very capital-intensive industry. In this case, properties are acquired in nice spots, redeveloped into luxury apartments, commercial structures, etc., and then sold at a really high-profit margin.

For example, if you spend N200 million developing a house in an amazing location, expect to sell it for at least N400 million. A good location is critical when considering property development.

Investing in real estate is only the tip of the iceberg. There are countless variations of real estate investments within these examples. As with any investment, there is much potential in the real estate sector, however, you should make careful decisions, do your homework, research, and weigh out the costs and benefits before taking action.

Things To Consider Before Investing in Real Estate in Nigeria

In 2011, only 37% of Nigerians owned a home. Information is the key to bridging this gap for potential investors and the general public. In addition, by simplifying the process, the barriers to investing in the sector can be broken down.

If you’re looking to invest in real estate, you should take these 8 steps into consideration.

1. Do Your Research

If you are interested in the property market, there are various platforms to find the information you need. Some of these platforms include the mass media, online and around you, and speaking with locals. You can create Google alerts for search terms on Google and other relevant Nigerian property sites. You will always be up to date this way.

2. Decide On The Specific Property Market

Decide on a sector that will benefit you the most based on your goals. It could be an office, industrial property, retail center, or residential unit. For instance, if you’re seeking a faster return, investing in residential real estate may not be best.

3. Identify Booming Real Estate Markets

Though they may not be booming now, infrastructure development and ease of access to central business districts may change that soon. When a highway is built, it eases traffic, and the working class tends to move in that direction, making it a good reason to construct high-rises to rent out to them.

4. Decide Where and How You Will Raise Funds

Depending on where you are in life, the source of financing may vary. It could be from friends, family, or financial institutions. Alternatively, you could have the money yourself. When you approach the bank or institution, make sure you know what you’re doing. Your plan has to be viable enough to make them give you the money.

5. Get The Details Right

Be careful not to enter into business deals with unreliable people. Consult an expert, a lawyer, and make sure everything is sorted out correctly, from the government requirements to the owner’s concerns.

6. Know The Law

Owning a property is one of the rights of a Nigerian. However, the 1978 Land Use Act gives state governments control over land within their borders. They then make it available to you after an elaborate and bureaucratic process. In order to use the land, i.e. sell it or develop it, you will receive a certificate of occupancy.

7. Look To The Future

Although there may not be basic infrastructure where your property of interest is currently located, if it is in the path of the ever-expanding urban areas, you cannot go wrong. Several years down the road, you may sell it for millions over and above what you purchased it for. Make sure you don’t lose sight of the big picture.

8. Leverage Online Marketing

As a real estate investor in the Nigerian market, you cannot afford to ignore the Internet. Whether you have a website or maintain a social media presence, the Web is an affordable way to get traffic to your venture once it hits the ground running. Online marketing could help you attract buyers or sellers.

In Conclusion

When it comes to investing in real estate in Nigeria, the best decisions are the ones that serve you, the investor. Consider your time, capital, and whether you want to be the one to deal with household issues when they arise. You can also read our articles on excision of land, certificate of occupancy and land tenure system in Nigeria

Mission Statement..

Areas Covered

Get In Touch