11 Tips On How To Start A Real Estate Business In Nigeria 2024
The real estate industry is unquestionably one of the most lucrative in the world. See the popularity of opulent mansions in Lagos and other locations. Most people have fantasies about owning one of these opulent homes. Whoever is successful in this field will have hit gold. The real estate industry's seeming resilience to the recession is one of the reasons it is frequently brought up.
Notwithstanding the economic slowdown, the industry has generated exceptional returns on investment. This may be because real estate is all about homes, which is why it exists.
With so many people living there and Lagos being a major economic hub, the demand for housing and business space is concerning. It should come as no surprise that a large number of Nigerians aspire to become real estate brokers. Nigeria is home to thousands upon thousands of real estate brokers. As such, there are a few things you need to remember to stand out. You will learn how to be successful as a Nigerian real estate agent from this post.
Real estate is any property (land or buildings) or a sizable collection of properties. On the other hand, buying, selling, or renting a building, home, or plot of land is known as the real estate business. Real estate agents are used by investors, companies, and homeowners to acquire and sell the four categories of properties mentioned above.
Further subsets of the real estate business include loan servicing and residential and commercial properties. Residential real estate includes undeveloped land, homes, townhomes, and condominiums; commercial real estate includes office buildings, warehouses, and retail stores; and industrial real estate includes factories, mines, and farms.
Real Estate in Nigeria
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Real estate is a significant industry in Nigeria. It is, in fact, one of the oldest industries in Nigeria. The company has grown into a gold mine over time, and several shrewd businesspeople have tapped into it and made tidy profits. Nigerians are always in need of retail establishments, offices, and housing.
They look to purchase or lease the buildings and structures of their choosing, and before making a choice, they might need to speak with a real estate agent or other expert. This explains why the real estate sector is rich in business opportunities and ranks fifth in terms of GDP contribution to the largest economy in Africa.
11 Tips On How To Start A Real Estate Business In Nigeria 2024
- Study the Real Estate Market
- Get some training
- Create a Business Plan
- Raise the Money What You'll Need to Launch Your Business
- Legally register the company
- Acquire an office and employ personnel
- Promote the business
- Create a Network of Connections
- Get started and work
- Recognize the Role of the Government
- Make the most of urban regions
A thorough comprehension of the subject is necessary for success in this line of work. You will learn all you need to know to launch your own extremely successful real estate company in Nigeria by following these simple steps.
1. Study the Real Estate Market
You need to familiarize yourself with the ins and outs of the real estate sector by conducting basic research. Long-term, this will assist you in becoming a field agent. While you're doing your research, it would be easy to visit with real estate agents to get more information.
You need to understand the advantages and disadvantages of being a real estate agent. You ought to research the impact of Nigeria's lifestyle and economy on the real estate market.
As a fan, you should become well-versed in the specifics, including the risks involved, the industry's main decision-makers, the necessary training, the operating laws, and the startup costs.
2. Get Some Training
To operate effectively and profitably in the real estate industry, you'll need to have some training due to its size. Training is available from a reputable real estate firm. In this way, you'll be able to learn in an organized setting with other seasoned real estate experts.
3. Create a Business Plan
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If you want to succeed as an independent real estate agent in Nigeria, you need to have a plan. If you had a plan, you would need to specify what objectives you wanted to achieve with the money you have available.
Don't think you can't go back; your plan may always be adjusted in the future. Having everything in writing is quite advantageous. You ought to, at minimum, have a general notion of the goals you hope to achieve over the next several years. In my own life, it's what I call the "calculator moment." because calculators are frequently used to try and calculate the virtual financial components of your business plan.
4. Raise the Money What You'll Need to Launch Your Business
If you have finished your research on your firm strategy, you ought to have determined how much capital you'll need to get started depending on the scale at which you wish to start. Should your savings and financial capabilities prove insufficient to get you started, you may have to hunt for more funding.
Real estate requires a significant amount of capital, making it a capital-intensive industry. If you lack sufficient funds, you must find investors. Seeking equity investors can assist you in launching and growing your company swiftly.
5. Legally Register the Company
Unregistered businesses are not taken seriously by the public. If you are a licensed real estate agent, you need to register your business as soon as you can to give the impression that it is reputable.
In Nigeria, business registration is handled by the Corporate Affairs Commission, a government organization.
6. Acquire an office and employ personnel
If you wish to be the owner of a real estate company, you will want specific contact details. This information would include phone numbers, email addresses, links to social media accounts, and, most importantly, a physical location. Sometimes, clients might want to come see you in person. This is the point at which an office suite is required.
As an aside, you will have more clients the more demand there is for division of labour. At this stage, you'll need to engage workers to assist you with your assignment.
7. Promote Your Business
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By promoting your real estate company on the right channels, you may attract the right clients and consumers. Nonetheless, you have to promote your business as a necessity. The survival of your business shouldn't be dependent on relationships or a dubious area in a public place.
Utilize the advances in technology and social media in particular that this century has to offer. Among the advertising options are newspapers, radio, television, and word-of-mouth (which is the most powerful).
8. Create a Network of Connections
In Nigeria, every bureaucratic move makes it more difficult to know who you know. Lack of relationships will lead to the failure of your real estate company. Nevertheless, having an internet presence might help you increase that impact. Verify that you get along with the buyers, sellers, sales brokers, and other participants in addition to other real estate agents.
9. Get Started and Work
Implementing your plan is the last step in establishing a real estate company. Execute the strategies outlined in your business plan. Poor execution is the main reason why many Nigerian businesses fail. Execution refers to your company's regular business operations. This includes, among other things, client orientation, marketing, networking, transaction closing, and human resources.
10. Recognize the Role of the Government
Starting a Nigerian real estate company requires an understanding of the role played by the government. The government needs to encourage real estate investment first. To protect investors' interests and promote the industry's growth, rules and regulations must be created and put into effect. To protect property rights, outlaw fraud and malpractice, and promote transparency in real estate transactions, the government must enact legal frameworks.
Second, government infrastructure and basic utilities are necessary for the growth of real estate. Roads, water, electricity, and other needs are included in this. To grow and liquidate their holdings, real estate investors require these services.
Thirdly, real estate demand is impacted by government actions and policies. Initiatives by the government to promote employment, foreign investment, and economic development may increase domestic and export.
11. Make the most of urban regions
Millions of Nigerians have relocated from rural to urban areas in search of better opportunities. The growing demand for urban residences and commercial real estate may present an opportunity for real estate investors. Profits from urban real estate might be higher. Because more people are living in urban areas, there are likely to be more potential tenants and buyers of commercial real estate.
Facts About Real Estate Investment In Nigeria.
1. Nigeria has a sizable population, thus demand is continuously high.
In cities like Lagos and Ibadan, housing is a persistent demand. Due to research indicating that a significant number of individuals are moving to Ibadan, there is currently a greater need for housing than there was previously.
Additionally, a property's value increases in direct proportion to demand. It's a smart decision to concentrate on real estate in a densely populated city because you can start earning money straight away.
In Nigeria, you can't concentrate on real estate in any old city. To find cities that can offer a fantastic return on investment, do your investigation. Another fantastic place in the North to buy real estate is Kaduna. Most visitors may be discouraged by a lack of security. However, it's still only a proposal.
Nigeria has an urban population growth rate of 4.1 per cent, with 52 per cent of the population living in urban areas, according to the World Bank. Nigeria would need to construct over 700,000 housing units annually to meet the nation's constantly expanding housing demand, according to an estimate from the UN Department of Economic and Social Affairs.
Since there are still more than 700,000 unbuilt homes in Nigeria, real estate is an excellent investment opportunity with plenty of possibility for profit-making.
There is a steady demand for residences, workplaces, etc. in Nigeria. Therefore, it will be prudent to seize the opportunity to focus on cities.
2. Outstanding environment with a robust return on investment
For several years, cities like Lagos and Abuja have experienced significant growth. In places like Ibadan, people also follow the road. Growing real estate will benefit from a region that is developing quickly. Fast urban growth, however, does not always mean that all areas of the city are impacted. Knowing the exact location also helps to increase the value of the property.
For instance, the cost of living is generally higher on Lagos Island than it is on the Lagos Mainland. Property values in Abuja are higher in comparable areas like Maitama. Ibadan is home to Elebu, Oluyole, and Bodija.
Along with a significant population of high-net-worth Nigerians, these places are home to numerous well-known Nigerians and even foreigners. A three-bedroom apartment can frequently be purchased for N100 million on certain parts of the island, whilst a five-bedroom mansion can fetch up to N450 million.
Abuja has higher fees. Furthermore, rental properties continue to be in high demand and offer great value due to the high cost of purchasing a property. In Lagos, a three-bedroom apartment can cost up to $10 million a year in rent.
Establishing a real estate company is not a task for the timid. You have to be willing to take chances to succeed in the real estate industry. Grow in your personal and business objectives, and develop into a goal-oriented, well-organized individual.
Remember that investing in real estate takes patience; it's not a way to get rich immediately.
