How has real estate boomed in Nigeria? Should you invest?

How has real estate boomed in Nigeria? Should you invest?

The majority of the world’s wealthiest people have some sort of real estate investment in their portfolios.

Because of Nigeria’s strong population growth rate, the real estate market has remained very profitable as individuals hunt for commercial outlets, office buildings, residences to rent as well as build a home of their own, & they sometimes need to contact real estate agents or specialists before making their selections.

Starting a real estate business in Lagos, Abuja, Oyo, Uyo, Owerri, Port Harcourt, Enugu, & other places, while profitable, comes with problems and obstacles.

What is Real Estate?

Real estate is defined as land and any structure(s) and natural resources on it, such as water bodies & mineral reserves and any flora or fauna.

A real estate business is a company that deals with purchasing, selling, managing, or investing in real estate.

We may divide the real estate into 3 major groups based on its use:

  • Commercial Properties, e.g. Retail Stores, Buildings, Office Building, and Warehouses
  • Industrial Properties, e.g., Factories, Farms, and Mines
  • Residential Properties, e.g., Undeveloped Land, Townhouses, Houses, Condominiums, & Private Residences

What do Real Estate Investment Companies do?

real estate investment in Nigeria Company owns & manages any investment(s), and it separates company-owned properties from personal interests.

It effectively serves as a haven that shields you from personal culpability.

Real Estate Investment Opportunities in Nigeria

Here are the best ways to indulge in real estate investment in Nigeria:

1. Real Estate Investment Trusts (REITs)

A Real Estate Investment Trust (REIT) is a business that owns, operates, or funds income-producing real estate.

REITs, which are similar to mutual funds, aggregate the capital of numerous investors. Individual investors can now receive dividends from real estate investments in Nigeria without having to acquire, manage, as well as finance the properties themselves.

  • REITs provide investors with a consistent income stream but provide nothing in the form of capital gain.
  • The majority of REITs are openly traded like stocks, making them extremely liquid (unlike physical real estate investments).
  • REITs invest in a wide range of real estate assets, including apartment complexes, cell towers, data centers, medical facilities, hotels, offices, retail centers, & warehouses.

Earning money through publicly traded real estate investment companies in Nigeria is similar to investing in stocks.

You earn dividends from the company’s profits & therefore, you can sell the shares at a profit if their market value rises.

REITs are reliable investment assets that may provide you with consistent income.

The benefits include:

  • Requires no minimum investment
  • Offers tax advantages
  • It is a very liquid method of investing in real estate. You will not require the services of a broker to cash out one’s investment
  • Real estate investment companies in Nigeria pay high yields as dividends
  • Allows you to invest in non-residential assets such as malls, factories, and hotels
2. Become a Property Manager

Property management is among the real estate business ideas that may provide you with a consistent financial income flow.

When you manage properties in places such as Abuja, Kano, Lagos, Enugu, Owerri, Port Harcourt, Uyo, and others, you are entitled to a portion of the rent you get (10% – 13%).

3. Land Reselling [Land Flipping]

Land flipping is yet another real estate enterprise in which you may spend your money and generate a profit margin of more than 85% in a matter of months or years.

As just a land reseller, you purchase lands and property at a lesser cost in a prime location (rapidly growing areas) and then resale them at a higher price once the property’s worth has increased.

You may start small by purchasing simply a plot of land, or if you have enough wealth, you can purchase as much land as you can and sell it all year long.

When acquiring lands, note:

  • Suppose you wish to sell within a few months, buy in the fast-growing locations. Some locations develop more rapidly than others.
  • Obtain all of the necessary land paperwork (Certificate of Occupancy or a Governor’s authorization) to demonstrate that you are purchasing from the rightful owner.
  • Try not to get involved in land disputes. Purchase land with the proper land titles.

Profits are made through the development of undeveloped land as well. As a city grows in size, the property outside its boundaries becomes more appealing to those looking to develop it. When a developer constructs dwellings or commercial structures, the value of the property rises even further.

The Incredible Advantages of Starting a Real Estate Investment Business

The advantages of investing in real estate are practically limitless.

Some of the benefits that are certain to accompany beginning a real estate firm include, and are not limited to:

1. Passive Income

The nicest aspect about rental properties’ cash flow is that it is termed a passive income once all of your bills have been paid. You will receive a monthly salary while operating the remainder of your investing firm.

2. Profitability

According to real estate investment companies in Nigeria, if you acquire a piece of land in a desirable location or developing neighbourhood & flip it after 2 or 3 years, the rate at which the value has doubled cannot be overstated.

3. Appreciation

While recessions and market volatility are unavoidable, the worth of real estate will continue to rise over time.

4. Control

The sense of control & pride that comes from owning something you built is arguably the most significant advantage of establishing a real estate firm. However, to maintain control, investors must also learn how to regulate their hunger for novel scenarios.

5. Financial Security

Unfortunately, far too many people today have no precise plan for securing their retirement. A real estate investment opportunity in Nigeria puts you in complete control of your financial future. Developing a real estate portfolio steadily over time means safeguarding your future.

Conclusion:

Remember, in this profession, no amount of revenue is too little. Establishing a real estate business may appear daunting, but by following the procedures already stated as well as receiving adequate training and advice, you will be able to become a professional and make millions as an agent or investor in Nigeria sooner than you think.

Goldville is a well-known real estate investment business in Nigeria. With our exceptional financial services, you might take advantage of the excellent real estate investment opportunity in Nigeria. Our team has a wealth of expertise and understanding in supporting businesses in expanding and becoming more profitable. We work in a range of industries, including the Nigerian real estate sector. Send us an email at phloxtheme@averta.com or phone us at +99 (0) 101 0000 888.

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