How To Start Real Estate Business in Nigeria – No doubt, the real estate business is one of the most lucrative business in the world. In this business area, whomever succeeds is sure to have lumps of gold. One of the driving force which explains why the real estate sector is constantly becoming popular is its recession resiliency ability. Despite the downturn in the Nigerian economy, the sector has continued to give off outstanding returns on investment (ROI).
What is the Work of Real Estate Investors?
A real estate investor is a person who invests his or her material resources, time and energy in developing properties and buying land or buildings with the main aim of making a profit in the coming future when their property appreciates in value.
What are the Career Opportunities in Real Estate?
Common careers that are available in the real estate include
- Marketing manager,
- Business development manager,
- Project manager
- Realtor, etc.
How to Start Real Estate Business in Nigeria
Below are the process flow when you want to start real estate business in Nigeria.
1. Write Your Business Plan
This is the initial step to utilize when beginning a real estate business in Nigeria. Crafting a real estate business plan is really the most important step to start a real estate business in Nigeria. And this is due to the fact that you need to know what market you will be doing the business with. Check if the market is for the rich or poor or for the middle class.
The above mentioned details should be in your real estate business plan. A real estate business plan is to cover all you need to start your real estate business from the scratch. It will highlight how much capital is needed if they are required to start your real estate business, check for the nature of the real estate business, the business prospects of the real estate company to mention but a few.
So it is necessary that you write your real estate business plan prior to beginning your real estate company in Nigeria. You can craft this business plan yourself or you may employ a professional who can write it for you.
2 Begin as a Real Estate Agent
This is the next step to beginning your real estate business in Nigeria. You will first be a freelance real estate agent and then if you are seriously reasoning on starting your own Real Estate Company or business in Nigeria. When you are a freelance real estate agent, you can be able to work in close association with many real estate industries so the case is now going to be based on the highest bidding company (i.e the real estate establishment that can pay you more).
Apart from these benefits, this period also will assist you to gather customers and clients for your personal real estate company when you eventually start. Recall that the main aim here is to begin your own real estate business without need for money so you’ll definitely want all these contacts to patronize your business without spending much money on adverts.
3. Sell and Advertise Land for Clients
It is recommend that you use more of social media when you are interacting with your customers that are interested first as this will lessen the tension of talking to them in person. Immediately you are able to convince such a customer to choosing your services and he buys a property from any of the real estate companies that you are working for and you’ve been paid your money the next step can be implemented.
4. Get Your Real Estate Company Registered
If you really what to start a real estate business in Nigeria, you will be expected to register the real estate company with business regulatory body in Nigeria. The last that it was inquired on how long it will take to register a company in Nigeria the response said it was in 21 days but now it can takes less time. If you do not get your real estate company registered, then a lot of people may not take you professional some may even mistake your company for a fraudulent scheme and with this, they may not likely buy properties from you.
5. Buy Properties Making Use of Your Profits
Purchasing properties is one sure way you can start real estate business in Nigeria. Now that you are able to register your business name as a company and your company is now a recognized body you can then start buying properties (you can buy houses depending on your capital and lands as well ). It is not advisable that you loan money when you want to start no matter how small you need as this can set your business in jeopardy even from the beginning stage.
Rather, you can buy cheap lands and then you resell for a start, just work on available resources. You can start by purchasing cheap land in your village and then resell for 25% – 50% or make more money by assisting sellers to sell their properties with set percentages (say a cut of 10% for you). Then as time progresses you’ll be able to purchase the costly and luxurious properties.
6. Get a Good Location for Your Office
At this step, what you need is to look for a conducive location and set up your company ( that is if you are really passionate about forming your own brand in the real estate sector in Nigeria) please be careful about getting this done. Recall that it is better to start small and grow in paces. Never you spend all you have made when you want to furnish and employ active staff for the company. Begin as a small real estate business. The key factor to bear in mind is that customer satisfaction is key and it is not how luxurious the company but how well its reputation is (although luxury may play a little role).
Tips for Investing into a Real Estate Company in Nigeria
- You should be familiarized with the necessary documents needed and you should make sure that you are working with a reputable real estate company that has a good track record.
- Investment returns are always more in areas with potential for development in the nearest future than ones that are in rural areas or non-motorable areas.
- Make sure that the property you are trying to buy is not located in an environment that is toxic . Also make sure the location has great infrastructure to prevent incidents of flood damage to your assets.
- You may consider mortgage products to see for your purchase
- Most times vOff-plan properties can be purchased at cheaper rates than when they are already built. You can easily invest in real estate in Nigeria even when you are a citizen in diaspora via Mixta Vest.
- You can check out for the alternative ways to finance your property which includes a rent-to-own scheme
- You should also use trusted legal counsel when doing your real estate transaction.
There are many business availability in the sector that you can choose to specialize on and still become a millionaire in no distance time. You just need to make up your mind, dedicate and put in your effort now with whatever you have and as time goes by you will start smiling to the bank. The real estate business is one of the most lucrative business in the world. In this business area, whomever succeeds is sure to have lumps of gold.
Frequently Asked Questions
How profitable is real estate in Nigeria?
The national real estate appreciation rate, going by research data, ranges from 3.5% to 3.8% annually.
How much do I need to start real estate business?
Have up to $5,000 and $10,000