Are you an investor? Are you looking forward to investing in real estate properties (land or houses) in Nigeria?
In this blog post, I have put together how one can invest smartly in real estate properties in Nigeria and make a huge profit.
So at the end of this article, you will be able to learn how to invest smartly and make a high return on investment, what to do, how to go about every step of your investment. The best places to invest and many more.
Before we proceed I will like to ask what is/are your purpose of investing?
Many people invest in properties for different reasons such as:
- For the purpose of having something to fall back on later in life in case something changes or when they grow older.
- Some people invest in property for the purpose of doing business by reselling to make a profit after some time.
- Some buy properties for the purpose of using them by themselves either as a business or as a home.
- While others invest in a property for putting it out for a rental purpose.
Which of these is your motives?
The good news is that either way, any of these purposes will still yield a return on investment. This is while investing in properties is been regarded as one of the profitable investments to make in Nigeria if been done well.
For the sake of this topic, I will be focusing on the “purpose of investing in other to resell to make some profit”.
Questions you will need to ask yourself before starting on your goal of an investment.
You will need to ask yourself these questions first, before proceeding with your plan.
- How much do I have to start with?
- Which city and location in Nigeria should I invest in that will give me a good return on investment at the expected time frame?
- Which particular property investment (land or housing) should I kick off with?
- Which trusted and experienced realtor/agent should I work with?
Some of these questions you may not have the right answers to until you have consulted an experienced real estate realtor/agent.
What to do before investing in real estate properties (land or house) in Nigeria
- Make a decision and set your budget: you will need to make a conclusive decision regarding the property investment and set your budget.
- Consult an experienced realtor: Next thing is to consult an experienced real estate realtor and brief him or her on your plan. A well-experienced realtor works with different real estate developers and property owners. Also, he/she knows and understand properties transaction and locations that can appreciate within a short while.
- Go for property inspection & enquire more: After you have spoken with an agent, next thing is to go for the property inspection.
- Do the due diligence: after you had seen some interesting properties, verify the property title and other details. you will also need to Inquire about the owner, preferable the real estate developer, the project done in the past, reputation, years in business, and information about clients who have had a deal with them in the past.
The result of your inspection and your findings should be able to tell you either to proceed with that property or to look for somewhere else.
When is the right time to invest smartly in real estate properties in Nigeria and make a huge profit?
If you are investing with the intention to resell and make a profit, the best time of investment is the time the property is about to be launched.
Let me explain, when a real estate developer wants to lunch a new property for sale, they will slice the price down in other to get capital to initiate the project.
At that time they have a target amount and number of plots/units they wish to sell before increasing the price to the normal price of the property.
So, you taking that advantage and investing at that earlier time will give you a huge return, because, by the time the project commence fully, other investors and some homeowners will see what is on the ground and come to invest like you did, at that time your own must have already started to appreciate.
I will give you a real-life example of what happened to one of the properties we are currently selling.
When we launched this estate in 2021, the price of a 3 bedroom semi-detached bungalow was sold at 12 million naira at the off-plan package to be fully delivered on or before 12 months. Within 6 months the property appreciated very high and we closed the sales and launched phase 2 of the same property
By January 2022 we open a few units to sell because there is a high demand for them. It was sold for 20 million naira at the off-plan package.
The people that earlier participated in this project and have finished their payment, their houses are currently standing. Use the link to view the property in question.
As of today February 2022, the current price of already built of this same property in that place ranges from 26 million naira to 30 million naira depending on the seller and the thing he or she has put in place on the property.
Imagine the kind of giant profit someone will get if he\she has the capital to purchase up to 5 units at that initial time within one year of investment. In this case, your money is the one working for you.
This is to show you how profitable real estate property in Nigeria can be if done well with the right people at the right time.
Meanwhile, we have phases 1, 2, 3, and 4 of these same properties, some are sold out while some are currently selling at different prices.
How to invest in properties in Nigeria in other to make a high return
Don’t make the mistake of buying properties because you like the area or because it is your hometown. Buying properties at the wrong place can make your investment stagnant or appreciated by a very small value.
If you wish to invest in a landed property or house with the intention of doing business, first thing is to consult an experienced realtor/agent as I mentioned earlier in this post, get a piece of information on areas and locations that have a high tendency of appreciating within a specific period of time you wishes to resell the property.
This information should be derived by how properties in that location have appreciated speedily in the last past few years.
Also, what kind of developments are likely to spring up in those locations in the nearest future.
Thereafter, you will need to go to the place to see it yourself. Because you can’t possibly give out your money without haven to see what you are about to purchase.
After seeing the property or the project site, you are convinced to go ahead.
Please, before payment if it is a landed property make sure that the land is not committed land. If it is a house do your due diligence by verifying the title of the property and seller.
After you have purchased the property and made all the necessary payment regarding the property also make sure all the necessary document is handed over to you as the new owner.
Advise, invest in different locations that have the same tendency of given high return of investment so as not to stock your investment in one place. That is if you intend to buy more than one or two properties.
Note: it is better to buy from trusted real estate developers who have delivered before to other investors and homeowners.
Advantage of buying your properties from a real estate developer:
- Buying from trusted developers has fewer chances of being duped to compare buying from families or an individual.
- They are going to bring in infrastructure and development in that area which will enhance the property to appreciate in a short while. Unlike land that has been sold by families.
- The issue of Omo-lile is not going to be your problem, it will be theirs to handle.
- If for any reason you purchase a property that has issues in the future, they will either give you a property of the same value in another location or balance your money because this will be stated in the agreement.
- You will be given a period of time to finish all your payment in a situation where you don’t want to pay the money at once or you don’t have all the money.
How to invest with a little amount of money in real estate properties in Nigeria and make a high return of investment.
In this context, the little amount in question ranges from 1 million naira to 5 million naira and this can only be invested on a landed property where you can start by buying one or two plots and grow to buy tens of plots and acres of lands and keep reselling all year round.
Before you set to invest in landed property with the purpose of reselling later after some time in other to make maximum profit, you will need to have the foresight and also work with a trusted agent/realtor.
When I say “foresight” I mean the ability to see the future of that investment grow within a specific period of time.
Furthermore, the proposed development in that area should be another reason while investing.
For example, in the Ibeju Lekki area of Lagos, before the government declared the proposed infrastructure and development that will take place in those areas, those places were nothing but bushes, and the landed property was sold as low as 25 to 40 thousand naira per plot.
After the government made a public announcement, wise investors and real estate developers saw business in those areas and went and bought as many hectares of land with little amount.
Today, those areas are hot cake, the land has appreciated more than 500%. The earlier investors are smiling at their bank account now.
The interesting thing is that those who bought much as of that time are still selling it bit by bit, and when they sell it, they invest in another location while the rest continue to appreciate.
If you have the intention of investing today with a little amount, the best place to go for is the Epe area Or Ibeju Lekki. Currently, those places are springing up with massive development and the landed properties in good locations are still selling at affordable prices depending on the title document.
However, the Epe areas are been designated as residential areas, while the majority of the Ibeju Lekki area are been selected as commercial areas by the government.
Why you should seriously consider Real estate investment in Ibeju-Lekki and Epe area
In Ibeju-Lekki popularly called the New Lagos CITY. There is already ongoing massive development and enterprises in the construction phase. These are:
- New Dangote Refineries, Jetty & PetroChemical Plants
- New International Airport
- New Deep Sea and Cargo Port
- New Free Trade Zone
- New SmartCITY
- New upcoming Gated Housing Estates
- New Eko Atlantic City
There are still others that are yet to commence such as:
- New 4th Mainland Bridge
- New Pan African University
- New ShopRite Outlets
- New Beach Resorts and Free Beach
Now, with these massive enterprises already in the construction phase, a lot of captivating opportunities in the making too are massively moving into this region.
People will be in need of different things such as:
- Apartments/Homes/Houses – to buy or rent.
- Offices, Stores, Malls, etc.
- Events/Relaxation centers
- Hotels, Eateries, Restaurants, Guest Houses
- Processing Factories and Warehouses etc.
This is to tell you that investing in this type of location, will certainly yield a good return on investment.
Should I start my real estate property investment with landed property or housing?
The answer to this is a factor of how much you have. If what you have is 10 million naira or less to invest in, you should start with landed property.
While, if you have 15 to 20 million naira above you can start with housing or both.
Stating with landed property, with the purpose of reselling it after, will require a lesser capital than investing in housing property.
However, starting with housing investment is much more profitable, and less chance of fraudulent activities to compare landed property, but it requires more capital.
What type of housing property should I invest in that will give me a speedily return on investment?
There are different types of housing properties such as bungalows, apartments, duplexes, terraces, penthouses, etc. all these different houses are chosen based on individual tests and level of income.
As an investor, when you are investing for the purpose of reselling and making a profit, your main objective will be the type of houses that will be highly demanded and that can easily resell without having to wait for a long period of time.
In this case, I always advise starting with the houses that are affordable by an average income person than going for luxury properties.
Meanwhile, luxury properties also sell but it takes a longer time to get a serious buyer than when you must have sold 2 to 3 units of affordable properties.
Reasons why you should invest in affordable housing properties such as bungalows & Apartments
- Affordability: in investment affordability is important, bungalows and apartments are less pricey to compare with duplexes, at the same time more spacious and comfortable. Therefore, a higher number of people go for it.
- Maintenance: they are easy and less expensive to maintain both inside and outside and that is also part of the reason why there are higher interest and demand of it, to compare duplexes.
- Highly requested for older parents: oftentimes investors in diaspora call to request modern apartments or bungalows to purchase for their older parents in Nigeria and this has triggered the demand for affordable houses.
- Highly demanded by average income earners with fewer families, much average income earns in Nigeria often request for this type of property as home each time they are set to invest in property. As a matter of fact, 80% of buyers who bought our bungalows and apartments are mainly homeowners. This is to tell you that these types of properties is been highly demanded by average income earners in Nigeria
There is much profit in the real estate business in Nigeria. Investing in real estate in Nigeria is truly lucrative and will help you to build a stronger revenue.
Truly, a real estate business in Nigeria is a very profitable sector, but buying and owning a genuine real estate property here is very complicated.
So before venturing into the real estate market, you need the guidance of a real estate professional on how to transact profitably without running into crisis or loss.
Furthermore, you need to carry out the due diligence, research and weigh the costs and benefits of your investment when transacting.
Looking to invest in real estate properties we are here to give you that professional guidance and help you secure profitable transactions with reliable developers. Contact us today let’s start the journey together.
The current best places to invest in property that will give a high return of investment are the Ibeju-Lekki and the Epe area of Lagos.
The fast-selling cities when it comes to properties are Lagos, Abuja, and port-Harcourt.
I hope you find this post useful, for more inquiries, to schedule a site visit, or to find out how to get a property that suits your needs and budget contact us.
Furthermore, if you have any questions, contributions, requests, addition, or corrections please feel free to drop your comment on the comment box below.