Navigating the Nigerian Real Estate Market:
Dos and Don'ts
Investing in real estate in Nigeria is a smart financial move.
The returns are massive and there’re just so much opportunities it’s almost insane.
It’s important though, to make informed decisions, as navigating the Nigerian real estate space can be dicey.
I recommend you follow these dos and don’ts to increase your chances of success:
- DO acquire your property in a location that is prime: While the condition and features of a property are important, its location is just as crucial.
A poorly located property may not attract renters or buyers, and its value may not appreciate as much as other properties in more desirable locations
- DO preferably, get your property within an estate: The estate managers protect your interest and land grabbers / omoniles must go through them first.
Infrastructures such as roads, light and water systems are in place to just connect to.
Making only the roads in front of your house won’t protect your cars from the potholes from the streets and houses before.
- DO ensure your documents are on point: Make sure you do due diligence on whatever documents are given to you.
Get the surveyor general’s nod as to the authenticity of your property.
- DO invest in multiple purposes properties: A property that can be used for both residential and commercial purposes, such as a live/workspace or a storefront with residential units above, or simply just having a reasonable sized boys’ quarters can offer a diverse stream of income.
- DO have close to you real estate professionals: Realtors, Property managers, Lawyers etc. can make all the processes a breeze and costly mistakes entirely avoidable.
- DON’T ignore the potential for future development in the area. Consider factors like population growth, infrastructure development, and economic trends that may impact the value of the land over time.
I personally don’t want my residential property too close to the new airport.
- DON’T put all your eggs in one basket: Diversify your portfolio. Don’t invest without a plan that includes goals, expected returns, and a time frame
- DON’T underestimate the cost of repairs and renovations: A buy-to-fix property may seem like a good investment, but the cost of repairs and renovations can quickly add up.
Make sure to budget for these costs before making a purchase.
By following these guidelines, you’ll be well on your way to a successful investment in real estate.