Nigeria is a fertile destination for investors, especially in the real estate sector. If you get your target clients right and you’re willing to be innovative with new models of the building, you will make your ROI in less than 10 years and you can have something to sit back on for the rest of your life.
Despite the pandemic and its attendant difficulty among Nigerians, housing is still and will always be a constant. If you’re thinking of investing in the real estate sector in Nigeria, these are some tips that can help you stand out;
Firstly, there’s the need to classify your client base along with income levels. A lot of investors build a high net worth building in an environment where per capita income is dropping. Why would a client buy N45 million apartment in an environment where there’s open drainage, there are area boys and the road network is bad?
Also, a young population is emerging out of singleness and getting married. They don’t need luxury. Many investors are complaining about empty buildings in Ikoyi and VI and parts of Abuja because the huge money spenders are not available due to the economic downturn and the fear of anti-graft agencies.
Since most Nigerians belong to the middle or low income, the focus is now on the sub-urbs and emerging towns.
The first-mover advantage is necessary for the real estate sector in Nigeria. Where you have the establishment of a private university or a government agency or organization, new housing opportunities beckon and markets will emerge.
Diversification is also key. I once developed a project for a real estate company in Nigeria when it sought to build school hostels. Students will always pay and given the cost of land outside cities such as Lagos and Abuja, you can get a cheaper bargain where private universities are established or better still, enter an agreement with the school to build and manage.©Standard Gazette, 2021. Unauthorized use and/or duplication of this material without express and written permission from this site’s publisher is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Standard Gazette with appropriate and specific direction to the original content.