Things to Think About Before Investing in Nigerian Real Estate
Things to think about before investing in Nigerian Real Estate only affect 37% of Nigerians owned a home in 2011. The key to bridging this gap for potential investors and the public is information. Furthermore, by simplifying the process, barriers to investing in Nigerian real estate can be removed.
If you want to invest in real estate, you should follow these eight steps.
1. Conduct Research Before Investing in Nigerian Real Estate
If you are interested in the real estate market, there are numerous platforms where you can obtain the information you require. Some of these platforms include mass media, both online and offline, as well as speaking with locals. You can set up Google alerts for specific search terms on Google and other Nigerian property websites. This way, you’ll always be up to date.
2. Select a Specific Property Market
Based on your objectives, choose a sector that will benefit you the most. It could be a commercial building, an industrial property, a retail center, or a residential unit. For example, if you want a quick return, investing in residential real estate may not be the best option
3. Recognize Hot Real Estate Markets
Though they are not currently booming, infrastructure development and ease of access to central business districts may change that in the near future. When a highway is built, it reduces traffic, and the working class tends to gravitate toward it, making it a good reason to build high-rises to rent to them.
4. Plan where and how you will raise funds
The source of financing may differ depending on where you are in life. It could come from family, friends, or financial institutions. You could also have the money on your own. Make sure you know what you’re doing when you approach the bank or institution. Your plan must be viable enough for them to give you the funds.
5. Pay Attention to the Details
Take care not to do business with untrustworthy people. Consult an expert, such as a lawyer, to ensure that everything is in order, from government requirements to the owner’s concerns.
6. Understand the Law
One of a Nigerian’s rights is to own property. The 1978 Land Use Act, on the other hand, gives state governments control over land within their borders. After a lengthy and bureaucratic process, they make it available to you. You will be issued a certificate of occupancy in order to use the land, i.e. sell or develop it.
7. Consider the Future
Although there may not be basic infrastructure where your property of interest is currently located, you cannot go wrong if it is in the path of the ever-expanding urban areas. After a few years, you might be able to sell it for millions more than you paid for it. Keep the big picture in mind at all times.
8. Make use of online marketing
As a Nigerian real estate investor, you cannot afford to ignore the Internet. Whether you have a website or a social media presence, the Web is an inexpensive way to get traffic to your new venture once it is up and running. You might be able to attract buyers or sellers if you use online marketing.
When it comes to investing in Nigerian real estate, the best decisions are those that benefit you, the investor. Consider your time, finances, and whether you want to be the one to handle household issues as they arise.
You can also read 11 Real Estate Facts Investor should be aware of before getting started.
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