Real estate business is widely considered as a profitable and lucrative business anyone can start-up in Nigeria. Over the years, the real estate sector has made money for investors and today, it is currently booming.
A lot of people are making millions from their investment in real estate and regardless of the economic meltdown, investing in real estate makes you huge profits.
In this article, we will go into a deep analysis of the real estate business and how you can invest in real estate in Nigeria. It is important to know that starting a real estate investment is not a business without challenges.
There are lots of difficulties encountered in this business, you will face competition from other real estate agencies and investors. We recommend you to give your attention to this post to know how to create a unique brand that stands out from the others.
What is Real Estate?
Real Estate is considered as a landed property which cannot be moved or removed from where they are. Real estate business refers to the leasing, trading or renting a piece of land, home or a landed property. Real estate agents are into the business of helping individuals, businesses & families to purchase homes, houses, land, warehouses, office space & buildings, farms, factories etc.
Investing in real estate is a serious business in Nigeria. As a matter of fact, it is not considered a child’s play. A lot of politicians, entertainers, investors and entrepreneurs who have tapped into the business are raking lots of money into their bank account.
In Nigeria, people are always in search of new apartments, buildings, shop space, office buildings, land for factories and filling stations. They consult the services of real estate agents before making a purchase. Even Nigerians in diaspora consult real estate agents to help them search for good lands and apartments to buy.
It is unlikely that the real estate business will die soon, already, there is a great demand for landed properties in Nigeria. Also, the real estate industry contributes immensely to the growth of the African economy.
Real Estate Investment In Nigeria
Irrespective of who you are or how much you have, it is possible to start a real estate business today. You don’t need to have hundreds of millions in your account to start, if you have a good idea and knowledge of the business, then you are good to go.
Develop a Business Plan
There’s nothing more wasteful than starting a business without plan, purpose and direction. It is vital for you to form a strategic business plan that will guide your real estate business. This will help you to identify areas where you need to invest and help you grow your portfolio as a real estate investor.
Register your business
Registering your business is one of the important things you should do when investing in real estate. Your business will be backed by the law if it is registered with the Corporate Affairs Commission (CAC). Moreover, you can register with real estate agencies such as the Real Estate Developers Association of Nigeria (REDAN), Association of Estate Agents in Nigeria (AEAN) etc.
You can run a real estate business on a small or large scale depending on the capital you have. If you made a proper research and drafted a strategic business plan, you should know the amount of money required for investment.
Real estate business requires a huge amount to start, it is capital intensive. If your capital isn’t sufficient, you can get money by seeking financial help from other investors or get loans & grants from corporate organizations.
Get into Business
When your capital is ready, the next step is to execute everything that you have documented on your business plan. There are lots of areas and opportunities to invest in real estate.
You can buy land and resell it for more profits when it appreciates in value. Also, you can buy a property in a good location and lease it for commercial use. Your property can be leased to mosques, churches, banks or it can be used as a warehouse or event center.
This is all you need to know about real estate investing in Nigeria. However, bear it in mind that real estate investment will not make you a millionaire overnight. This is why you must exercise patience in growing the business rather than pursuing money.