NIGERIA THE HUB OF REAL ESTATE MARKET IN AFRICA: EXPOSING NIGERIA REAL MARKET TO THE DIASPORA”.

Real estate is a thriving industry in most African cities with massive construction activity in cities and emerging urban areas. A growing population has created more demand for residential and commercial properties.

Institutional investors, both local and international, are also pumping millions of dollars into retail property. However, the focus is now more on Nigeria Real Estate Market which has now become investment hot-spot in Africa as evident by influx of giant property development companies across the globe into the country based on market trends, improvement on infrastructure developments and attractive real estate opportunities.

These companies and the home base developers still sees greater opportunities in Nigeria Real Market despite the global financial crisis caused by the crash in the value of crude oil that has caused an economic downturn in many countries around the world. This unfortunate economic crisis has triggered the inflation rate in these countries to rise to abnormal heights. The situation has not just caused a currency crisis in countries like Nigeria for instance, but has caused a financial meltdown for many small, medium, and large businesses.

Large companies are grumbling exorbitantly about some of the policies placed by the Federal Government during this economic downturn, and have no other options than to find ways to either acquire foreign exchange at ridiculous prices from the parallel market, or sell off some there real properties to raise fund and same applies to individuals and for the fact that cash flow has reduced drastically, it has led to property market crash.

Meanwhile, one of the advantages of real estate investment is the ability to absorb inflation. Unlike several other investments, real estate is relatively stable and has the capacity to withstand the dynamics of economic recessions and downturns. It is a tangible investment and while it will be affected by the law of supply and demand, it is rare for real estate investment to significantly lose its value especially in an economy such as ours. We essentially run a cash economy as regards real estate, with very little support from government, banks and other financial institutions. While this has slowed down the growth of this sector, it is also the reason for its significant crash and so as smart investors, we must see the opportunity in every difficulty rather than the difficulty in every opportunity.

Therefore, that make this season a good time to invest in real estate if one is possessed with some basic real market understanding. This is definitely a good time to buy as there are many great deals in the market.

The numbers of properties for sale is far more than those with the willingness and the financial power to buy and so it is now a buyers market (that is who has the money dictates) and that is very advantageous to those abroad because they are at the advantage of exchange rate whilst the huge population and demand are here, think about that smartly!!!

Another positive development that an investor can leverage this season is that sellers are willing to consider offers that they would not normally consider and agree to terms that they do not generally agree to before.

This is a period when significant discounts are permitted. Many sellers and property developers are willing to accept reasonable deposits and payment in installments. It is generally understood that several people who can easily afford real estate investments are no longer able or willing to do so. This offers an opportunity to buy properties with flexible payment terms and also provides you with the opportunity to pay amounts that will not disrupt your financial plans as well as avoiding the need to use high interest bank loans. There is also an opportunity at this time for Nigerians in Diaspora to invest in Nigeria since they now get more value for their money. It makes good sense for those with some funds to buy properties in Nigeria now.

Now, lets look at few of the reasons you should consider buying property in Nigeria:

1. Hedge against inflation:
One can only hate inflation if one doesnt have an asset that is inflating. Inflation is increases the values of your properties hopefully faster than any input costs and the costs to operate the asset. Several years back, some people used to think how ridiculous it was for anyone to pay N50,000 to purchase a plot of land in area like Lekki Peninsular in Lagos State. Today, the same one plot of land is over N150M. Inflation is a powerful economic force thats difficult to stop. You would rather want to own inflating assets than always be a price taker.

2. Rise on growing economy:
When times are good, assets tend to inflate quicker due to higher employment, rising wages, and rising corporate profits leading to more demands on properties. Real estate tends to be a major beneficiary during a bull market. Forget about protecting yourself against inflation, owning real estate is a gainful opportunity to make money with inflation. If there happens to be hyperinflation, your cash is devaluing rapidly whereas your real assets start surging in nominal value. When economic tightness returns sooner or later, it causes another surge in property prices.

3. Generational Asset.
In the African setting, the general believe is that apart from good name what a parent should leave behind for the children is at least a property to be passed from generation to generation, conceivably making your family and loved ones lives a little bit better. No doubt real property is a generational asset as there is no place like home, you may desire to retire home or any of your children might have good reason to come back home. Another angle to it is this, think about our university graduates nowadays who are complaining they might never be able to afford owning a home like their parents due to exorbitant prices. Now think how much worse it will be for their children. Everybody has heard a story of some grandparent buying a home for just N20,000 that is now worth millions of Naira. If you can buy a property to live and enjoy, and then pass it down the family to give your children a heads start, what an amazing gift youll provide. But besides working hard, a massive generational wealth transfer should help support future generations.

4. Little effort to build wealth.
The whole idea is to invest in assets that work for you, and not the other way round. Real estate is a relatively easy business to understand compared to investing in stocks. For instance, on a rental property, good location, good tenants, manageable maintenance, and rental growth are all it basically takes to make for a solid real estate investment, whereas stocks have so many more variables to deal with, including: management credibility, industry growth, competition, politics, regulation, tax policies, inventory turns, margin analysis, operating profit growth, and more.

Meanwhile, to turn N100,000 into N500,000 through equity investing is no easy feat, neither is making an interest of another N400,000 on the deposit into a Bank over 7-8 years. Paying on installment with no interest. For people paying on a property over a period of time on installment, the rate is fixed and the payments never change. 3-4 years from now you might be paying the same amount that isnt worth as much as when you first took out the subscription for the property on installment. As your net worth grows the amount you pay monthly or so becomes a smaller part of your overall net worth, thereby reducing any feelings of stress associated with paying for the property.

5. Collateral Asset.
Unlike cash, which serves no utility function, property addresses not only a fundamental human need, shelter but can also serve as collateral material against loans. If our financial system goes to hell (no one knows tomorrow) at least you will have an asset you can actually utilize at back home. Remember, cash is just an ordinary paper and worthless unless its turned into a tangible asset! Tangible asset. Real estate is a tangible asset that will continue to add measurable value and enduring impact to everyday life and a valuable financial portfolio.

Sheikh Al Maktoum said: Dubai is great, but Nigerias potential is beyond our imagination. Nigeria would be one of the greatest countries not only in Africa but also in the world with the right investments and infrastructural developments. Her economy is developing rapidly and her construction industries can match what obtains in many advanced countries.
So at this point we think any member of the Diaspora intending to invest in real estate in Nigeria is taking a wise decision.

A2 REALMART OPTIONS has worked with various local practitioners in Lagos Nigeria over the last 8 years and are always looking to take on new partners. The firm is poised to empowering you to become home-owners with smile! If you must take the advantage of the opportunities that abound in investing on real estate in Nigeria, do not hesitate to call us by phone on +2348032296562 (WhatsApp/Call), +2348117949689 (WhatsApp only) or e-mail: a2realmartoptions@gmail.com.

Meanwhile, efforts are also ongoing at bringing reliable and dependable property developers from Nigeria to Houston and Atlanta on a Property Expo Exposing Nigeria Real Market to the Diaspora with a view to showcasing their Real Market and give first hand one-to one information about their products to potential buyers. So if you are into property development and would like to Sponsor the expo, feel free to get in contact through the whatsapp numbers & if you're Nigerian living in any of the cities mentioned and would like to attend the expo (free to attend), send an email with your full names and phone number through which you may be contacted to a2realmartoptions@gmail.com.

Thank you.