Starting a real estate business in Nigeria, as an agent or an investor is a sure way to make lots of money.
Today, real estate is said to one of the most profitable and fastest growing business out there. This is why we’d be showing you how to start a real estate business in Nigeria.
Starting your own real estate business in Abuja, Lagos, Oyo, Port Harcourt and other cities is good but the Nigerian real estate investing comes with challenges and hurdles.
Already, the market is well established; one with plenty competition from many new and established players. But, do not be intimidated by the competition rather focus on building a unique brand that stands unique and offers the most value amongst the rest.
What the Nigerian Real Estate Is?
Real estate in Nigeria is a property (made up of buildings or land) or a large collection of properties. On the other hand, real estate business is the process of buying, selling or renting a property, home or land, or building.
Real estate agents assist investors, homeowners, and businesses buy and sell all for property types.
The real estate business can further be divided into parts like loan servicing, commercial and residential properties etc.
Examples of residential real estate include but not limited to houses, undeveloped land, townhouses, and condominiums; examples of industrial real estate include farms, mines, and factories; and examples of commercial real estate are office buildings, retail store buildings and warehouses.
Real Estate Business in Nigeria
Real estate business in Nigeria is a serious one. As a matter of fact, this remains one of the longest-standing industry in Nigeria.
The industry has spun into a diamond mine over time, and lots of smart entrepreneurs have tapped into it and are making loads of profit.
Nigerians are always in need of residential apartments, commercial outlets, and office building. They look to either rent or buy buildings and structures of their choice, and they sometimes need to consult real estate agent or expert 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.
How to start a Real Estate Business in Nigeria?
To be successful in this industry, you should have good knowledge and information in this field. The basic guide will equip you with the needed information and knowledge you need to acquire to begin your own very successful real estate business in Nigeria.
Craft a Strategic Business Plan
You should strategically plan your business to be able to conquer this market. Real estate investing is simply like beginning any other career in which you can’t start on a whim without having a particular business in mind.
A business plan is primary for any real estate investor, and one of the best advice you’ll get in the housing market is to start out small and plan, plan, plan! You’d find this extremely helpful if you’re planning on becoming a real estate investor for the long term. In this case, you want to grow your real estate investment portfolio strategically.
Build a Unique Brand
You should build a unique brand if you want know how to start a real estate business from scratch.
Brand credibility is important and you’d find it more helpful especially if the investment of millions of Naira. Branding is all about creating about your business in the minds of people.
To transform your real estate business into a trustable brand, you need to give your customers more than enough value for their money and build a relationship by engaging with them on a personal level. Plus, set your real estate business apart from the competition by investing in premium branding identities such as website, logo, adverts and more.
Register your Business Legally
Taking this business to the highest level possible means you’d have to legalize its existence by registering the business with the Corporate Affairs Commission (CAC).
Registering as a Business Name with CAC is enough at this level if you can’t afford to register it as a Limited Liability Company (LLC).
Lastly, watch out for the regulations and rules guiding professional real estate bodies in Nigeria to ensure that you are not operating against the law. Some of the well-known real estate professional institutions to watch out for include: Association of Estate Agents in Nigeria (AEAN), Real Estate Developers Association of Nigeria (REDAN) and Nigerian Institution of Estate Surveyors and Valuers (NIESV).
Raise the Required Capital To Start
Did you do your business plan research well while looking for how to start a real estate business from scratch? If yeah, then you should know the minimum amount of capital required to begin depending on the scale at which you choose to start.
If your financial capacity and strength are not enough to start, you can source for alternative funding’s.
Real estate business is really capital intensive and requires huge chunks of amount of investment. If you do not have enough, it is important that you seek investors. In fact, this is how to start a real estate business with no money.
Real estate business in Abuja, Lagos and Port-Harcourt is most capital intensive and requires a large amount of investment. If you do not have enough it is crucial that you seek investors.
You can search for equity investors that you can give you enough leverage at the beginning and accelerate growth.
Get Started & Get Working
This is the last step of how to start a real estate business in Nigeria guide today.
Execution is the last step. Execute all that you have developed in your business plan. A good amount of Nigerian businesses fails as a result of very poor execution.
Execution comprises of your day to day activities in the business. This includes the networking, human resources, closing of deals, marketing, client orientation, etc.
Starting a real estate agent business in Nigeria isn’t for the faint hearted. So, to be successful in the real estate business, you must be strong hearted, willed and prepared to face the challenges. At a personal level, and as a business owner, nurture your ambitions and become a goal-oriented and organized person.
Remember, the real estate sector is not about achieving immediate success. Instead, it is a long game, which requires many patience.