Real Estate business in Nigeria is undoubtedly one of the most lucrative businesses worldwide. Most of the money magnets around the world get a share of their wealth from investing in real estate.
Presently, If there is any business in Nigeria that is truly lucrative and extremely profitable, it has to be a Real Estate business in Nigeria. Most of the top billionaires in Nigeria are real estate investors. The business is a money spinner to the highest level. Real Estate is currently booming in Nigeria and people are making millions in it. A good point to note in Real Estate in Nigeria is that there’s an investment package for almost every income level. Anyone who wishes to invest can invest whether he has thousands or billions of naira, you can even invest without a dime in your pocket. I’ll show you how this works but first, let’s look at the profit potential in real estate.
Profit Potential in Real Estate Business
A few months back, The Enclave Epe was selling for 850,000 Naira. Some wise investors took advantage of the offer and invested. Fast forward to December 2019, The same plot of land at the Enclave Epe is now worth 1.5 Million Naira. What changed? Anyone who has studied the Lagos Real Estate market for some time would know by now that Epe is a location with huge potential for Real Estate investments. The area is constantly developing and the price of property constantly appreciating.
Imagine that you have been one of those wise investors, you would be making a whooping 650,000 Naira within a few months.
Investment Opportunities in Real Estate
There are several Investment opportunities in Real Estate Business in Nigeria. It is advisable that you start with what you have and expand your portfolio as you grow in the business. But, if you have the capital, by all means, start big straight away.
- Real Estate Agency: This one is the simplest and easiest way to make money in real estate even if you do not have a dime. How this works is that you get verified properties, promote the property and when you close a deal, the company that owns the property will pay you a commission for the sale. Please, if you must start out this way, I strongly advise that you join a reputable real estate firm as an independent consultant. This is because your integrity is at stake if you do not do your due diligence or sell a non-existent property. The law will come for you when you are found out. You can start with little or no money and if you are smart enough, you will grow to become a giant realtor.
- Land Flipping: Land flipping is a type of real estate investment that involves buying lands at a low price and selling at higher prices to make huge profits. This type of real estate investment is profitable when land buyers buy land in an area that’s rapidly growing. You can make up to 300% on your investment in a few months or in some cases a few years. In Lagos in particular, the value of land (depending on the location) can increase by up to 30% in one year. Certain areas like Lekki Phase 1 have seen a 500% value appreciation in the cost of land in just five years. Smart investors are always on the lookout for properties within these areas.
- Open Space Leasing: This works in a simple and unique way. Buy a property in a good location and lease it out for makeshift use. You can lease it to churches or business that wants to develop a makeshift outlet such as car wash and mechanics. You get paid rental fees on the property while waiting for the property to appreciate for future sale.
- Property Development: This is where the big boys in the industry are doing their stuff. They acquire properties in nice locations, develop it into luxury apartments, commercial structures, etc and sell at a very high-profit margin. If you spend N200 million to develop a property, be sure you are going to sell for N400million.
- House/Office Rent: This is when you build a house and put it up for rent, you get paid all year for a lifetime.
What are your thoughts? leave them in the comment section.