Investors generate steady income streams when they invest in real estate in Nigeria. There are numerous methods by which you can earn money and build a cushion of financial stability, but there are certain loopholes that can limit your earning potential when investing in real estate in Nigeria. Therefore, conducting thorough research is crucial before getting started.

If you plan on investing in the property market, consider these steps listed in this article

1. Research
There are great sources of information about the property market in the media, online, and all around you if you are looking to buy or sell. Talk to the natives and local dwellers. You can also visit Google and other important Nigerian property websites. It’s highly recommended to have a solid knowledge of real estate before venturing into it. There is a shortage of information about real estate in Nigeria and thus your efforts are required, no matter where you are based.

2. Determine the appropriate market you want to invest in

Depending on the situation, the real estate could be commercial, industrial, retail or residential.
For example, if you’re looking for fast profits, you’d better steer clear of the residential market.
A study revealed that a mall is already sold out before it’s even finished in Nigeria, while residential units take many years before getting sold.

3. Identifying potential real estate markets

Where a highway is constructed, it eases traffic and the working class tends to move in that direction, making it a worthy cause to build high-rises to rent out to them.
What does this mean? If you have identified residential real estate as your interest, you need to target the middle class.

They may not be thriving at the moment, but due to infrastructural development and accessibility to the major business areas, this situation could soon change. Building roads can make traffic easier, and working-class people tend to go and settle in that direction, so building houses for rent is a great investment

What does this mean?
If you choose to delve into residential real estate, you need to target middle-class citizens because almost half of the middle class in Nigeria make plans to improve their standard of living. This means that there’s a potential for a consumer boom.

4. Make a decision on how to get funding to invest in real estate in Nigeria

Your source of funds may additionally differ, depending on your current status or where you are in life. It may be from family and friends, relations or financial establishments. You may also have your own money. Before going to the banks or financial establishments, ensure you already know what you’re doing. Your plan has to be feasible enough to cause them to provide you with the money.

Keep in mind that properties in the best areas of Lagos and other luxury urban areas across the country are as expensive as some western markets.

In early 2014, The Nigerian government received a $300 million loan from the World Bank to build the Nigeria Mortgage Refinancing Corporation (NMRC). I hope you can now feel its impact on liquidity and bank loans. You too can gain

Read More