6 AMAZING FACTS ABOUT REAL ESTATE IN NIGERIA
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Today, let’s talk about six amazing facts about the real estate business in Nigeria.
A long time ago, the real estate business used to be a business for the wealthy, unlike now, when anyone can start the business with little or nothing. As times have changed, so has the reality of things in Nigeria. Real estate in Nigeria has a strong hold, with quite a number of people, agencies, and corporations springing up daily. Real estate has contributed immensely to the economic growth of Nigeria. Real estate is sustainable, has a future, and can be banked on.
Despite the poor economy, we can still see a rise in buildings, shopping malls, schools, hotels, etc. It is pretty obvious that real estate can stand the test of time. According to the International Monetary Fund (IMF) in a 2014 forecast, “strong developments in the construction, real estate, and technology sectors in developing countries such as Nigeria have supported the world economy through tough financial periods in recent years. It also predicts that these developing nations will account for about 70% of world growth over the next decade.”
In the last two years, especially since the COVID-19 outbreak, there has been a decline in other sectors; however, the economic decline has had little or no impact on real estate. This suggests how powerful it is to have laid a solid foundation in Nigeria’s economy. With all the positive testimonies about the real estate business, it is still crucial to know that it is not a business you can barge into without having any basic information about how things work.
What do you need to know?
- Rapid and consistent growth in Nigeria
Real estate gives you business foresight. Imagine the population of Nigeria presently, which keeps growing every day with people needing and looking for a place to live. We are beginning to see it play out now with the number of people that keep asking for a place to rent. What will likely happen in the next ten years? Your guess is as good as mine. This makes it obvious that real estate is one of the best investments you can make in Nigeria, especially in Lagos.
- Key to collaboration
Real estate is not a business you can do single-handedly. It is best to dive into joint ownership, as it speeds up the results you get as an investor. Collaborations are very important; moreover, you don’t need to be rich before starting a real estate business. Also, consider collaborations with people despite your present financial constraints.
- Carry out detailed research
As a real estate investor, you are required to keep doing your research before taking any step. The reason is that change is a constant thing. Some factors change constantly and if you don’t keep up, you might end up making an investment mistake. Research on the current real estate markets, location and also, developments that occur in the location must be known before you consider any form of investment.
- Be strategic
The economy hardly affects real estate. A downturn that affects every other sector may likely have little or no effect on the real estate sector. Notwithstanding, you have to be strategic about it to avoid a bad investment. Your investment (done strategically) can return a high-profit ROI.
- Find the most expensive properties
Sequel to being strategic, finding expensive properties boasts of a higher and better income. Lagos and Abuja are popularly known to have the most expensive lands and properties in Nigeria. In Lagos, Banana Island is a home to individuals (both Nigerians and Foreigners) with a high net-worth and wealthy people. You can be strategic enough to focus on either of the two cities for your real estate business.
- Continuous growth in co-working spaces
Co-working spaces are now the real deal lately with people making more demands for it as an ideal office for businesses and startups. Over the years, due to a high demand in co-working facilities, real estate investors have channeled more funds into building or converting structures into co-working spaces in Nigeria. In 2016, there were just 29 such spaces in Nigeria. Presently, we have over 150. Think about the number of co-working spaces that are likely to spring up in the next couple of years. That is a good investment therein.
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