Real estate in Nigeria
REAL ESTATE IN NIGERIA.
Real estate has the same meaning everywhere, but the only thing that differs is approach. Different nations has different ways of dealing with Real estate and this most especially is dependent on their weather, climatic conditions, culture, civilization and budget. The same thing applies to Nigeria and in this piece we will be looking at the concept of Real estate in Nigeria, how it is perceived, its opportunities, and the best entry method to adopt when considering making a move in this business space in Nigeria. Before we proceed, let’s take a look on the general concept of the term REAL ESTATE.
WHAT IS REAL ESTATE?
The real estate term is subjective but generally speaking, it means the physical properties which include land, housing, buildings and how is it transacted. Simply say that real estate incorporates buying, building, selling, renting and leasing of lands, and houses; duplexes, bungalows, condos, apartments, villas and whatever term each country uses to categorize their own.
BRIEF ON NIGERIA
To understand real estate in Nigeria, we must understand a few little things about Nigeria. Nigeria is the most populous African country. With a current (2020) population of 206,139,589(and still growing exponentially) according to Wordometer, and most of her population being young, there is no gainsaying to what the future holds for this country. To be exact in 2017, 42.54% of Nigeria’s population was between the ages of 0–14. With this statistics, it can be argued that more than 70% of Nigeria’s population today is 50 years and below and this in fact is a good thing for the country considering the strong human capital.
Oh sorry for the little digression, it is important to note that increase in population increases the demand of real estate. Simply put, the more the number of people in demography grows, the higher the demand of land, housing, etc. In most cases, this drives the prices of housing and this is exactly what is happening in Nigeria. The price of housing keeps soaring despite the low per capita income. This is surprising right? I mean the law of economics states that the strength of the overall economy significantly impacts the real estate market as consumers’ ability to support housing prices largely depends on key factors like GDP, unemployment, and income growth. According to the law, these factors give buyers the ability to spend more or less on housing, consequently increasing or lowering real estate prices. But in the case of Nigeria, this may not be actually true as the prices of housing and land keeps increasing and people are still transacting amidst huge unemployment and economic distress.
Going forward, note that one of the many things that make real estate in Nigeria more interesting is because it is not affected by Weather and climatic conditions like few other countries.
REAL ESTATE OPPORTUNITIES IN NIGERIA
Well, I think the brief on Nigeria mirrors a little bit on the opportunities of real estate in Nigeria but under this subheading, we will be looking at the opportunities in two categories namely the opportunities to an investor and the opportunities to an agent.
- Opportunities to the Agents
It is true that it is a common idea that Real estate Agency in Nigeria is overcrowded but that is not true. In fact, the truth is that Real estate Agency is yet to be explored. Don’t get me wrong, I understand that almost everybody in Nigeria in recent times answers “AGENT’ at one point or another but the potential of this term is far from being harnessed. This opportunity lies in Technology. Simple innovative technology is yet to be employed in the way Real estate is served in Nigeria. It is also true that there is still lack of innovation in the way Real estate is transacted in Nigeria. Of course, we have several real estate websites in Nigeria where properties are listed but that is still very far away way compared to how Real estate is transacted in other parts of developed countries. My projection is that anyone with a better technology backed innovation that will provide more clarity on real estates (documentations, legitimacy), mitigate the risk of fraud, and provide a better service experience will create enormous wealth. This is beyond building a property listing website.
- Opportunities for Investors
There is not much to be said here. The Nigeria real estate graph for investors has always been on the quick profit trend and that will not change anytime soon. Any investor(s) thinking about investing in this business space in Nigeria should never worry about loss. Your only worry should be on how to buy real estate in Nigeria without encumbrance. Once you have achieved that and you are sure that the property is legitimately yours, then loss should never bother you. Though in some cases the returns could be slow, but on the long run, you must have your pay day. It is guaranteed.
HOW REAL ESTATE IS PERCEIVED IN NIGERIA
Honestly speaking, for most Nigerians real estate is either black or white, there’s never a grey area. Most Nigerians do not pay attention to details when it comes to Real estate especially buildings. This is different from most other countries that pay attention to structural designs, roofing, where the kitchen is supposed to be positioned, and all what not. For an average Nigerian, if the building looks good in the eyes and well located, he is okay. There are only few places in Nigeria especially Lagos and Abuja where a handful of people pay attention to details when it comes to building and buying houses. This in itself is an opportunity to seize. Why? Because if anyone can introduce something better in terms of designs and finishing, there will be huge demand for it.
BEST ENTRY METHOD.
This is the key to every Real estate investment in Nigeria. If you must succeed, you must understand how to start and where to start from. You must understand and choose the city to invest in correctly. There are actually cities that are money pit for Real estate in Nigeria. There are states that will do well in Agriculture but not Real estate. Also there are states and cities you don’t do high-end real estate investment. I think this is same for every country. If you must invest in those cities that real estate does not thrive much, you must do low cost housing investment, something moderate. The fact is that there are very rich cities in Nigeria whose residents will never welcome high end housing. They will rather sleep in mud houses than pay heavily to live in your expensive tastefully built mansions. Every State and city in Nigeria has her on mentality and mindset and you don’t want to experiment with your investment.
For this reason if you’re not conversant with the terrain of Nigeria real estate market and how it works, work with a real estate company. The benefits are immeasurable.
Conclusively, we cannot complete this discussion without mentioning BUDGET.
Budget is the major thing to consider when thinking about investing in Nigeria real estate market. You must ask yourself what do I want to invest on and how much are my willing to part with, otherwise you will get stuck along the way. Your budget should determine the area and city you can succeed without so much competition. There are cities with big players with fat bank account, and if your capital is not as huge as theirs, you will stand no chance to compete. Ensure that you do extensive research on cities that fits your budget and the category of real estate that you want to venture into. This is very important as everything depends on it. You may want to consider the services of Nigeria real estate experts who will guide you accordingly if you don’t know how to go about it. Your joy should be that return on investment in Nigeria Real estate market is faster than any other country that I know of.
Now that you’ve got all you need, I wish you a smooth ride as you journey on this path.
Do leave us a comment or write us directly on email@example.com should you have any further questions or need assistance.