kelechi 
Discover Nigeria’s Finest Real Estate Investment Opportunities. Nigeria’s property market is getting more sophisticated with prime-grade developments in the residential, commercial, and retail sectors. The country’s market is relatively large, which means it has the potential for significant economies of scale, which is a big deal for attracting investment.
We think rent growth will stabilize in the next couple of years as the current development pipeline is completed. We are still optimistic about the long-term prospects for investors.
If you’re thinking of investing in Nigerian real estate, you need to be aware of the legal and bureaucratic challenges that can arise. One challenge is getting a certificate of occupancy, which is a document that confirms that a piece of land has been leased to you for 99 years. Another challenge is getting a governor’s consent, a duly signed and stamped deed of assignment from the state governor.
Discover Nigeria’s Finest Real Estate Investment Opportunities
A real estate investment is a business plan that entails buying, managing, renting out, and/or selling a property to make money. similar to what a Nigerian real estate business would display. Real estate investing can be done in a variety of ways, but to make money, they all depend on the same economic principles. First and foremost, the property’s worth needs to rise. Moreover, the expenses incurred in possessing and upholding the property must not surpass its elevated worth.
Real estate investing can take many forms, and savvy investors base their choice of investment approach on their need for profit—whether short- or long-term.
Fast-turn investing, sometimes known as “flipping,” is the practice of purchasing a property and selling it quickly. Purchasing a property for long-term rental or lease involves earning both the rent and the property’s increasing value. This is known as long-term investing.
Things to Think About Before Purchasing Nigerian Real Estate
In 2023, only 37% of Nigerians owned their own home. That’s a pretty low number, and we need to do something about it. One way is to give the public and potential investors more information. Also, making it easier to invest in real estate would remove some of the roadblocks.
To invest in real estate, do your research, choose a specific market, identify booming markets, and select your location and fundraising method. Pay attention to details, understand the law, and look to the future. Seek insight from successful Nigerian real estate investors and choose an appropriate investing approach.
1. Conduct Research
There are a bunch of places to find out what you need to know about the real estate market. Talking to locals and using media, both online and offline, are a couple of ways to stay informed. You can also set up Google alerts for search terms on Google and other real estate websites in Nigeria. That way, you’ll always be up-to-date.
2. Choose your Particular Real Estate Market
When you are choosing a real estate investment, you should think about what you want to get out of it. For example, if you are looking for a quick return, investing in residential real estate may not be the best choice.
3. Recognize Real Estate Booming Markets
The housing market in Nigeria might not be booming right now, but things are looking up. That’s because of infrastructure development and good access to the main business districts. Building a freeway makes it easier to get around, and the working class tends to move in that direction. Although the Nigerian housing market isn’t booming, it is improving as the government builds new infrastructure and makes it easier to get to business districts. The working class tends to move toward new freeways, so building high-rises and renting them to the working class is a good idea.
4. Select the Location and Method of Fundraising
When you buy real estate, you might run into legal and bureaucratic headaches, like getting a certificate of occupancy and a governor’s consent. To avoid the hassle, it’s best to talk to a specialist or lawyer to make sure everything is done right. Maybe you have a relative or close friend who can help you out, or maybe you have the funds yourself. If you have to go to a bank or other institution, make sure you fully understand your plan and why they should lend you the money.
5. Pay Attention To The Details
When you invest in real estate, there are a lot of legal and bureaucratic challenges that can come up. For example, you need to get a certificate of occupancy, which is a document that says a piece of land has been leased to you for 99 years. You also need to get a governor’s consent, which is a deed of assignment that has been signed and stamped by the state governor. To avoid these challenges, you should talk to a specialist or lawyer to make sure everything is done right.
6. Understand the law
One of the rights of a Nigerian is to own property. However, the 1978 Land Use Act makes the states the bosses of the land within their borders. The states then have to go through a long and bureaucratic process to make the land available. Once the land is available, you’ll get a certificate of occupancy, which lets you sell or develop the land.
7. Consider the future
If you own property that’s in the path of ever-expanding urban areas, you can’t go wrong, even if the property doesn’t have basic infrastructure. When you sell it a few years later, you might get millions more than you paid for it. When you’re investing in real estate, it’s easy to get caught up in the details and miss out on a great investment opportunity. So don’t lose sight of the big picture!
8.) Selecting the Appropriate Real Estate Investing Approach
There are four main ways to invest in real estate: leases, flipping land and houses, developing property, and REITs. Renting is one of the most proven, reliable, and secure ways to make money from real estate. It involves buying a house and then renting it out by the month or year.
i.) Lease
A few benefits include consistent cash flow, asset appreciation, and the ability to use If you want to make money in real estate, one of the surest ways is to buy a house and rent it out by the month or year. It’s a reliable way to make consistent cash flow, and the value of the property should go up over time. You can also use the property as a tax write-off.
ii.) Land and house flipping:
Land/property banking is when you buy a property with the intent to sell it off quickly for a profit. This approach requires a lot of time and effort, but it can also be very rewarding if you do it right.
iii.) Development of Property
There are a few ways to develop the property. You can buy land, build on it, and then sell the finished product. The finished product can be sold at any stage of completion, from the carcass level (lintel level) to being fully finished with fixtures, plumbing, and other amenities. You can even sell it fully finished and furnished.
iv) REITS:
REITs are a type of investment fund that pools money from a bunch of investors and uses it to buy, run, and/or manage income-producing real estate. There are several kinds of REITs, including mortgage REITs and equity REITs. These REITs, which are listed on the stock market, pay dividends to their subscribers from the money they make from their property and investment holdings.
But how can an investor in Nigeria choose the best Real Estate Investment Strategy? How do you successfully apply your strategy?
The Complete Checklist for Real Estate Investing
The Ultimate Real Estate Investment Checklist
9.) The government in Nigeria is a very heavy player.
The Nigerian government is a big player in real estate. The Land Use Act gives the governor unlimited access to all land in the state, and they must approve every land transaction for it to be legal. If you don’t understand the role of the government in rectification, ratification, titling, and approving transactions, you’ll get into trouble. The strategy for success is to make friends with government officials and follow the rules at the land bureau.
10.) Understand land laws and titles
The C of O is a document that shows a piece of land has been leased to someone for 99 years. It’s the most important title you should look for when you are buying land. Other land titles you should know about are Governor’s Consent, Excision, and Gazette.
A governor’s consent is a document that shows land with a C of O title has been transferred to a new owner. The document is signed by the state governor and has the state seal. It shows that the state and the governor are backing the transfer. Other helpful titles are Excision and Gazette. A registered survey is not a title. “Freehold” land doesn’t have a title, but the government can’t take it from you. You can get a title or a certificate of occupancy, but you can’t legally enforce your right to the land without a governor-approved survey or registration with the Land’s Bureau. However, a freehold and a registered survey are exempt from government acquisition, and title perfection or C of O processing is possible. According to land law, you have no enforceable legal rights to land if the survey is not properly approved by the governor through the C of O or allocation, If the land isn’t registered with the Land’s Bureau, you don’t have any legal rights to it, according to land law.
Excision is when the government takes land that it thinks is in a city or town and divides it up. Then they recognize the traditional owners as the rightful owners of the land.
The government’s official journal, the Gazette, records this excised portion and confirms this land title. But a registered survey isn’t a title, and freehold land doesn’t have a title. Freehold and registered survey lands are off-limits to the government. You can’t take them over. But you can do title perfection or C of O processing.
If you don’t have a survey that’s properly approved by the governor through a C of O or allocation, or if the land isn’t registered with the Land’s Bureau, you don’t have any legal rights to the land, according to land law.
11.) Selecting the proper site is crucial.
Location is the most important factor in real estate, especially in Nigeria. Here are some tips to help you choose the perfect spot for your property investment: If the location is good, the property will practically sell itself. And it’s no different in Nigeria. No matter how you slice it, location is the most important thing. Here are some tips on how to pick the perfect location for your property investment: In a good area, the right property will practically sell itself.
Lagos Case Study
Lagos is a city with a lot of diversity. It attracts business travelers, vacationers, foreign investors, and all kinds of folks. The problem is that there are too many people and not enough homes, so there’s a housing shortage of two million or more that keeps getting worse. Real estate prices in Lagos have always gone up, from Lekki to Chevron to Awoyaya to Lakowe to Bogije.
When you invest in real estate in Nigeria, you need to think about what the government wants and where they are going with their plans. They have plans for every square meter of land, whether it’s for highways, hospitals, residences, or businesses. Places that don’t have government support, like Badagry, Festac, Agege, and Ikorodu in Lagos, aren’t considered luxury real estate destinations. These areas are affected by what investors want, what’s available, and what people think the property is worth.
12.) Make the most of cities
As a result of the above, Lagos State has been declared an urban area, making it subject to global acquisition. This means the government is interested in the region and plans to do major infrastructure projects. The government “commits” a sizable amount of land in major urban areas for its use now or in the future under the Land Use Act. The remaining portion is free, and ownership of these free pieces can be transferred to ancestral land owners for any purpose they want through a process of regularization, ratification, or excision.
What was once a sleepy backwater is now a booming residential and commercial hub, a gold mine for billion-dollar developments like the Dangote Refinery, Alaro City, and Free Zones. This is because the government declared Lagos State an urban area, making it a fair game for global investors.
13.) Benefit from GRAs
The upscale neighborhoods in Nigeria were first built to meet the needs of white colonial officials. After independence, Nigerians started moving into the high-end GRA homes, which were previously reserved for their white rulers. This shows that these fancy neighborhoods are a symbol of wealth and a better life in Nigeria.
Lagos has three GRAs on the mainland: Ogudu, Ikeja, and the one GRA on the island. These GRAs are exclusive and in high demand, which means you can expect a big return on your investment.
14.) Develop Beachfront Properties
Lagos, Nigeria, has the Atlantic Ocean and the Lagoon on either side. You can benefit from this premium real estate for your beachfront, like VI and Lekki, which are well-known beachfront estates in Lagos, thanks to its amazing shoreline and hectares of coastal real estate.
I want to invest in real estate in Nigeria, and I’m especially interested in taking advantage of the government’s infrastructure development plans. I want to know more about the different stages of completion for these projects and how they might affect the value of real estate in the areas where they’re taking place.
15.) Benefit from Free Trade Zones
Free zones are places in a country that are set up to help the economy grow. The government doesn’t have much say in what goes on in a free zone, which means businesses can operate without a lot of rules and red tape. That’s why free zones attract so much foreign investment. The Lekki Free Zone Development Company (LFZDC) runs a free trade zone.
Dangote Refinery
Lekki Free Zone Development Company (LFZDC) is building a huge deep-sea port in West Africa, just south of the free zone. There are 300 private companies registered in the various free zones in Lagos, and they’re in a position to take advantage of the awesome benefits in Eko Atlantic, Alaro City, and the Free Trade Zone by LFZDC.
16.) Invest early in megacity developments
Lagos is a hot spot for real estate development, with hundreds of new projects opening every other month. But a few of these developments are really something special. They’re almost always a big deal, and that’s probably because of the size, ambition, services, and amenities that are offered. Plus, they’re usually planned out really well. Like Banana Island, these communities start out really small and then grow over time into upscale, exclusive communities that offer investors a great return.
These are a no-brainer, sure-guaranteed real estate investments that will pay off big time. You’ll get your money back, no matter when you get in. It’s just a question of how early you can spot these projects!
In summary
Investing in real estate in Nigeria can be a great way to mix up your financial portfolio and make a steady income. There are lots of investment opportunities, so you can find something that matches your risk tolerance and financial experience. But remember, investing in real estate takes research and due diligence if you want to be successful. Don’t be afraid to think outside the box when considering your options. That way, you can make real estate investments that meet your unique needs and objectives.
