With over $900 billion estimated worth of Nigeria’s real estate industry by PricewaterhouseCoopers (PwC) and the increasing year-in-year-out contribution of the sector to the Gross Domestic Product (GDP) of the country at an average rate of 8.7%, it is imperative to highlight possible ways smart investors can gain access to the real estate market through different entry levels to untap the available share of the industry.
In no specific order, the following list will highlight eight (8) ways to become a real estate investor in Nigeria.
1. Have your money: The easiest way to control and win a property deal is through one’s purchasing power. Those who can pay outright or stake a high percentage for a deal always get to record the industry’s most win, which increases their investment chances.
2. Loan/Mortgage Plan: With increasing acceptability of mortgage financing by real estate companies, investors can now buy a property from zero to 20% equity and spread the balance for up to 30 years. With the right investment, ROI from the property could easily offset the mortgage repayment plan at a quicker rate than the above timeline. (Offers such as this are available in the highbrow area of Lagos like Ikate, Lekki, and Abraham Adesanya).
3. Co-fund a Project / Joint Venture: If you believe an investment is right, and you do not have the total financing power to secure the opportunity, you could look for like-minded persons within your network to co-fund the project and ultimately share the profit at maturity/completion of the project.
4. Instalment Payment Plan: Over the years, homeownership has become easier through increasing flexible payment plans by real estate developers. From a 6 to 24 months payment plan, you can easily invest in a property by making the first deposit and spread the balance over the agreed timeline.
5. Family Inheritance: Depending on the location of the property, you can renovate inherited properties and furnish it to modern market demand taste and steadily build your portfolio using the ROI from the property.
6. Compound Investment with Real Estate Companies: Many real estate development companies now offer investment blocks to fund their projects. With proper due diligence of the company, you can enjoy guaranteed ROI from 15% to 60% of capital investment within 6 months and above. Landbanking Development Project, Landvest, and FundIT investments are possible vehicles to be considered.
7. Become a Real Estate Developer: Through proper registration with regulatory bodies within the real estate industry, you can as well decide to become an industry player by developing and selling land or homes.
8. Take a chance with Lotto27 Ltd: A new game betting company in Nigeria is about to change the narrative of the industry by rewarding lucky winners from her periodic raffle draws with luxury homes in Lagos State. The houses can be used for short let services or annual rental income by the winners.
Also, with indicative reports showing that less than 30% of the Nigerian population are properly housed and coupled with the high demand for homeownership in Nigeria, the real estate industry is still experiencing a large shortage of housing supply. Therefore, making it highly viable for smart investors to invest and overcome the rising shift in the industry of who gets the opportunity to secure the best performing real estate investment opportunities.
………………………………………………………………………………………………………………………………………………………………………..
Providing intelligent, integrated real estate consultancy services driven by a time-tested approach of safe and smart real estate investments advisory through intermittent research of the industry is the goal of Oluwajuwon Obaniyi, PMP – who is leading the team at Property in Nigeria.
You can direct all inquiries regarding available investment and market entry opportunities within Nigeria to [email protected] or call +234-81-67-8000-57.