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How To Start A Real Estate Business In Nigeria[2024]
Real estate is considered to be one of the most profitable and growing businesses in Nigeria today. One can make a lot of money by starting a real estate business, whether as a real estate agent or as an investor. As you probably know the real estate business involves buying, selling, or renting a property, however, there is more to real estate, particularly in Nigeria than what meets the eye. So in this article, we will be giving you an in-depth analysis of how to establish a successful real estate business in Nigeria.
Real estate is all about property consisting of land or buildings. while real estate business is the process of buying, selling, or renting a property, building, home, or land. Real estate usually doesn’t involve any personal properties that are movable, such as cars, furniture, and any other movable things. The immovable properties include natural resources and any permanent artificial properties.
The Real estate business can be divided into further parts such as Residential real estate, commercial real estate, Industrial real estate, etc.
- Residential Real Estate; This type of real estate business is homes or land that people purchase or rent primarily to live in such as apartments, condos, townhouses, and cabins.
- Commercial Real Estate; These are properties used by business entities to carry out their commercial activities such as office buildings, restaurants, hotels, grocery stores, shopping complexes, etc.
- Industrial Real Estate; These are types of properties used primarily for production, manufacturing, distribution, and storage such as warehouses, factories
Real Estate In Nigeria
Over the years, Nigerians have come to trust real estate as a secure and reliable way to hold assets. one of the longest-standing industries in Nigeria is the real estate industry. It is also seen as an asset to pass down to your generation and more importantly, it is seen as a business to earn lucratively from. Nigerians are always in need of residential apartments, office buildings, and commercial outlets. They look to either buy or rent buildings and structures of their choice, and they sometimes need to consult real estate agents or experts before making their choices.
This explains why the real estate industry abounds with business opportunities and has been ranked as the 5th largest contributor to the GDP of Africa’s largest economy.
5. Steps To Start A Real Estate Business?
If you are interested in joining the real estate industry in Nigeria, here are five easy steps you can follow that will help you establish a successful real estate business in Nigeria.
1. Build A Unique Brand
Building a unique brand is the process of generating awareness about a brand through various marketing initiatives to increase recognition, advertise a particular product, and provide value to target customers. this is very important for any Nigerian aiming to go into the real estate business. as branding is about creating a perception of your business in the minds of people.
To turn a real estate business into a trustworthy brand, one needs to give customers more than enough value for their money and build a relationship by engaging with them on a personal level this is one of the ways to start a real estate business in Nigeria.
2. Have A Strategic Business Plan
Another way to start a real estate business in Nigeria is through a business plan, which is vital for any real estate investor and a successful brand always focuses on the research to take its venture forward. Research about Sales, Marketing, Staff performance, Inventory, Customer behavior, or product review are the areas where companies desire to gain insight.
A statistical plan is a method where a company collects the data sample of a particular population (target buyers) with the help of surveys, polls, and experiments, analyzed using calculations like mean, median, and mode.
3. Raise The Required capital To Start
The real estate business is very capital-intensive and requires a huge amount of investment. If you do not have enough you must seek investors. You can look for equity investors that can give you enough leverage at the start and accelerate growth. Real estate is required to get you started depending on the scale at which you choose to start. If your savings and financial capacity are not enough to start, you can source for alternative funding while planning to start a real estate business in Nigeria.
4. Legally Register The Business
It is very crucial to legalize the existence of one business by registering the business with the Corporate Affairs Commission [CAC] in other to experience the highest level of possibility while planning to start a real estate business in Nigeria.
Also, watch out for the rules and regulations guiding professional real estate bodies in Nigeria to ensure that you are not operating against the law. Some of the popular real estate professional institutions to watch out for include; the Association of Estate Agents in Nigeria (ASEAN), and the Real Estate Developers Association of Nigeria (REDAN).
5. Get Started & Get Working
The last step to starting a real estate holding company is execution. This is the process of executing all plans that have been made concerning the business. A good number of Nigerian businesses fail due to very poor execution. Execution comprises your day-to-day activities in the business. which includes the closing of deals, marketing, networking, client orientation, human resources, etc.
As a real estate business owner, one must be prepared to face challenges as all businesses come with different challenges on a personal level, and as a business owner, nurture your ambitions and become a goal-oriented and organized person. Keep in mind that the real estate sector is not about achieving instant success. Instead, it is a long game, which requires a lot of patience.
Conclusion
Starting your own real estate business in Nigeria is a journey filled with opportunities and challenges and we all know that the real estate industry is dynamic. However, By following the steps outlined in this article and staying committed to your goals, you can pave the way for a successful venture in this dynamic industry.
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