We hear it and we see it, the increasing number of people leaving the rural areas for the more urbanized and centralized places in search of better living.
The technical word is “urbanization”, and the street word “Level up”. Regardless of where people find themselves or go, their fundamental human needs remain the same: Food, Shelter, and Clothing.
Each need is in its way important. However, it is no secret that people will always need somewhere to live or work, and from these fundamental needs; only one of them seems capable of possessing and even increasing in value when in re-sale: Land.
They say the gold, silver, and diamonds of the world can be found within the earth; and now one can find them by just using the surface piece of the earth.
Buying Land in Nigeria has been acknowledged to be one of the most valuable commodities that can be owned in the country, however most people go their lives without owning a single property and end up regretting it.
With so many diverse opportunities in land ownership; the Nigerian real estate and property investment has to be the most frequent technique in getting gold from land, especially in cities and urbanized areas like Abuja.
With an ever-growing demand for affordable housing in Nigeria African countries, especially with it’s still growing population. Driving the demand and need for property investment in Nigeria.
Nigeria’s housing demands by its population -already high, continue to rise, and the housing supply, especially in urban areas doesn’t match up even as more people and parties are looking for apartment for rent and apartment for sale in Nigeria’s property market.
Real estate companies and real estate investors see the gap between demand and supply. They understand that money can be made through various means like home listings already owned property for rent and taking on contracts for home improvement.
The returns of real estate investing go beyond just the passive income and cash flow that could be gained from renting and payment from property use.
Ownership of property in Nigeria can be used as stand-ins, leverages, and even collateral for diverse reasons including going into other businesses which can be out-of or back into the real estate sector.
These properties can be used to save up for rainy days as -Nigerian’s say and stand as assets on their own.
Banks and other financial systems in Nigeria and across the world see property investment and real estate development as one of the most secure and profitable investments in Nigeria.
With the real estate sector holding the title as the 5th largest contributor to Africa’s largest GDP. To put it in a better perspective, real estate in Nigeria alone is relatively larger than the GDP of several countries in the world.
Now as an individual, property investment in Nigeria might look like a sea too big for one person to swim in alone -when you consider the monetary value of the sector. However, swimming is the same in any body of water once you understand the flow and techniques involved.
Nigeria property market opportunities include and aren’t limited to;
- Property Development and Build to Lease
- Property Management and Procurements
- Realtors or Real Estate Agents
- Real Estate Investment Trusts (REITs)
- Indirect Real Estate Investment
Property development is one of the major methods employed by individuals or groups who possess the relatively large financial capability required for construction.
They might not have the ability or skills to execute the development of the properties but they can assemble the required talents and professionals like architects, contractors, and project managers for successful completion.
Build to lease can be simply the construction or purchase of a property with the main aim of renting it out.
Some of these developments could be simple bungalow units, blocks of luxury apartments or offices, and even estate development.
Property management and procurements involve individuals or parties who are only responsible for monitoring and making decisions regarding the processes involved in acquiring the land, components, or services required for the successful operation of these properties.
These people might not have a direct hand in the construction of these properties but they possess the technical know-how and experience when it comes to the management of properties.
Real estate agents or Realtors are parties who aren’t looking to invest heavily or are more focused on a less capital-intensive method to generate revenue in the real estate sector.
They help in linking up real estate investors and potential clients from which they can earn a commission when the business has been conducted between the two parties.
Real estate investment trusts or REITs are for individuals or parties who are not ready or willing to go into property ownership and management yet.
This method allows them to easily convert and use their investments in real estate into stocks that can be traded and exchanged at the stock exchange market.
Indirect real estate investing like the name states involves no direct ownership of property, and most times involves the pooling of resources by various parties to make them available to contractors or management companies.
The opportunities in the Nigerian real estate sector are numerous as said. Finding the best method suitable for your property investment portfolio is key. Regardless of the method chosen, here are some tips to help you through the experience;
- Understand and Know what documents and requirements are needed for your method of investment.
- Working together with reputable and established real estate companies with a proven record will help your investments,
- Ensure you are legally protected whenever you take actions
- The investment gives higher returns when made in areas with potential development in the near future.
- Understand the strategic location of any property or land being purchased.
- Undeveloped land and properties tend to be cheaper than developed lands.
It is clear to see that the conditions in the country currently and in the near future point towards a need for more parties to be involved in the real estate of Nigeria.
Although there are risks in every endeavor. However, when the right methods and investigations are made before investments, it allows one to have a better perspective of the investment they will be going into and possible returns from the Nigerian property market.
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