Does real-estate investment in Nigeria give a good return?

Does real-estate investment in Nigeria give a good return?

Nigeria’s financial economy has received a boost due to real estate investment. However, people who are still wondering whether to go for real estate investment in Nigeria should read on. Over the last few years, real estate investment has grown to become quite a profitable business by giving amazing returns to investors. However, with over a population of 200 million, the real investment market of Nigeria is untapped. Therefore, despite the 2020 COVID-19 splurge, Nigeria’s real-estate investment remains unaffected.

There are certain ways in which you could make real money in this field. Read on to find out how to grab the best returns by investing in the real-estate in Nigeria.

How to make good money?

Mentioned below are three ways through which you could receive amazing returns from real estate investment.

  • Rental income
  • Business generated revenue
  • Value appreciation

1. Rental Income

The shelter is a must for humanity to thrive. However, while residential properties for rental are quite common, nobody pays much attention to the rental properties for commercial use. This might be due to the shutdown of businesses because of the onset of the Covid 19 pandemic. Therefore, rental properties vary from one another based on the intention behind their existence. However, mentioned below are some of how rentals will give you money in Nigeria.

2. Monthly/Annual rent

You can charge your tenants a yearly or monthly fee for seeking shelter in your home in Nigeria.

3. Lease

This system works by putting a lease agreement between the homeowner and the lessee for a certain property. The lessee pays an upfront amount for several years or agrees to pay regularly at certain intervals. As a result, real estate investors in Nigeria are enjoying amazing returns through rental properties to date.

4. Value Appreciation

Slowly but steadily, the real estate investment opportunities in Nigeria are booming. A report by the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos, has stated that the investors made a huge amount of money from the real-estate sector despite the ongoing pandemic. Some of the ways investors have grabbed money from value appreciation are mentioned below:

5. Fix & Flip

This strategy of real-estate investment goes way back in Nigeria. It works by investing a very low amount in purchasing dilapidated properties in amazing locations. Further, the investors spend a good amount on the renovation and repair work. The property is then sold off at the original market price to potential buyers. This makes amazing profit margins for the investor.

6. Off-plan investment

Property developers have created amazing opportunities for investors to make their investments in amazing locations at an affordable price. The price is quite different and lower than the market price. You can easily expect a return of up to 20% from this investment strategy.

7. Revenue generated from business

Most of the business ideas are dependent on the real estate properties available in Nigeria. Investors purchase a certain property at a certain location because of the business benefits. Let’s take the example of car wash companies. Usually, they invest in properties in fine locations as the customers can easily access them. Another instance is installing gas stations on main roads to help customers drive in and out conveniently.

How to get a 20% return?

Here’s how you can get a 20% return on real estate investment in Nigeria.

  1. You can secure a piece of land under development for a minimal amount. But, first, keep the money invested and wait for around 2 to 3 years. Then, look for sellers who are willing to build something in that particular location.
  2. What you can do next is buy a finished property. And fix an amount for rent. You can also look for potential buyers to sell the property at 10% more than the buying price after two years.

Conclusion

Now that you know how profitable this could be, you should plan your investments wisely. Investing in off-plan projects might not yield good returns. So, always get yourself a talented developer to deliver optimum results. You can easily expect an ROI of 20% yearly on the investment in real estate in Nigeria. This is the scarcity of land in the area and the desire to buy a house. With the right network, a good investment coach, optimism and an open mind, you can increase your profit margin.

Are you looking out for real estate investment companies in Nigeria? Look no more. Goldville offers you amazing investment opportunities. Our highly-skilled professionals are ready to help you out with financial assistance. Many companies have grown tremendously to become profitable under our guidance and expertise. We pay equal attention to companies and individuals.

Apart from real-estate investment, we also offer our expert guidance in the sector of agriculture, Forex trading, and the stock market. So take a smart decision right now and secure your future with us. For further queries, you can contact us via mail at info@goldville.org or give us a call at +234 8060841782.

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