How to Start Real Estate Business, Property Development Company in Nigeria
When it comes to selecting businesses that are highly-profitable in Nigeria, the real estate business is currently one of such. Most Nigerians, young and old, rich and poor, are involved in this business and are earning big as real estate investors.
In locations like Lagos state, Oyo state, Ogun state, and many similar locations in Nigeria, real estate investors are making millions monthly and even those who are just joining the boat are equally making money.
As the real estate business is expanding in Nigeria, more and more people are diverting into it daily and are making lots of cash from it. At whatever level (Small scale or large scale) you might be willing to start this business, making money is guaranteed.
In this article, I’ll be talking about the revenue potentials in this business in Nigeria, the most investment opportunities you currently have at your disposal in the real estate industry, as well as the basic steps necessary for starting up a real estate business in Nigeria.
Revenue Potential in Real Estate Business in Nigeria
Before we move on with the process of starting a real estate business in Nigeria, let’s first talk about the revenue potential.
About 7 years ago, a man bought a plot of land in Osogbo for N400,000 and decided to use the land for growing cash crops. Recently, he had a serious need for money and had to sell that property. So, he consulted with a real estate agent to find out the current market value of a plot of land in that area in Osogbo and the real estate agent made it known to him that the current market value of a plot was N6,000,000.
When he calculated how much he would have made if he had been able to buy 10 plots as at the time he acquired the land for N400,000 a plot totaling N4,000,000 for 10 plots, he would have sold 10 plots now for 10 X N6,000,000 totaling N60,000,000 and would have gained N56,000,000 on 10 plots within 8 years of acquiring such a piece of land in Osogbo.
Most Promising Investment Opportunities in Real Estate Business In Nigeria
Under this very section, I’ll be mentioning the promising investment opportunities in the real estate business in Nigeria and how you can invest your money into them.
Here are the opportunities you can invest your money into and earn big with time whether you’re starting on a small scale or on a large scale:
- Real estate agency
- Office rent
- House rent
- Land flipping
- Landed property development
- Space Leasing
What are the basic steps necessary for starting a real estate business in Nigeria?
- Make your findings of the real estate business
- Set aside some funds
- Prepare your business plan
- Get the certificate of incorporation for your real estate business
- Get the appropriate facilities for your office
- Connect to established and professional real estate investors
- Create a website for your real estate business
Make Your Findings of the Real Estate Business in Nigeria
Before you invest a dime into this business at all, just like in any other business, conduct a market research and find out how people do this business, how they cope with the challenges, how they make their profits and how they create connections in the business.
Once you’ve made proper findings and you’ve found the business to be highly-promising, you may then decide to start investing in it.
Set Aside Some Funds
Just as you would need to raise funds in any other business, so it is in starting up a real estate business. It’s very easy with this particular business to start somewhere first and upgrade later. The fund you’ll set aside is going to be your start-up capital in the business.
It does not matter to start big in order to earn big. You just need to play smart so you can earn fast. Making the most out of this business is not about how much you’re willing to start with but how smart you are.
Prepare your Business Plan For Real Estate Business In Nigeria
As in any other entrepreneurial business in Nigeria, you need to write your business plan and this is what will be guiding the operations in the business.
You’ll be structuring and restructuring as the case may be, and so many other things you’ll be doing with your business will be drawn right from the onset such as writing the vision and mission statements, deciding on the number of workers to be employed at a time, preparing the start-up fund, making provision for doubtful debts, as well as drawing statistics for the business operation.
Get the Certificate of Incorporation for your Real Estate Business
This is the legal step for starting an entrepreneurial business in this country and getting the certificate of incorporation entails going through some legal process. This includes visiting any branch office of the Corporate Affairs Commission (CAC), searching for a business name including the online portal search, making payment and submitting the required documentation and many more. Once this process has been completed, you can then visit again and pick your certificate right away.
Connect to Established and Professional Real Estate Investors
The real estate business is not what you can do alone. You have to connect to other established and professional real estate investors to do join hands together. That is the nature of the business. When a transaction involves more than one real estate investor, once it is completed, the revenue is shared out instantly.
For instance, if you’re patronized by someone who needs up to 50 acres of land to build a university and all you have in your own custody is not up to 10 plots, you will have to connect to someone else who has this property in custody.
Create a website for your real estate business in Nigeria
Creating a website for your real estate business is another level of exposure that will make you stand out among your counterparts in the industry. You will have access to the online world and out of the 4.75 trillion people that surf the web, you’ll surely get a lot of people through the online portals that will patronize you from time to time.