How To Make Money,Start Real Estate Agent Business In Lagos & Abuja Nigeria (2019 Investment Opportunities)

How To Make Money, Start Real Estate Agent Business In Abuja, Lagos And Port Harcourt Nigeria..

• Investment Opportunities In Nigeria Real Estate Industry In 2019

How To Make Money As A Real Estate Agent in Nigeria

Real estate is arguably one of the biggest and most lucrative industries in the world today, and this is no different in Nigeria. The industry, over the past 10 years or thereabout, has solidified its base in the Nigerian business/corporate world, providing investment and job opportunities to millions of Nigerians, directly and indirectly. One viable means of making money in this sector is via a real estate agency. And in this article, we’ll be guiding you on how to make money as a real estate agent in Nigeria.

Overview of Real Estate Business in Nigeria

According to the financial reports released by PwC and NSE few years ago, the real estate sector in Nigeria contributes about $10 billion to the Nigerian GDP. This figure ranks the industry as the 5th largest sector in the country. Hence, real estate business is obviously one of the most lucrative businesses to venture into in Nigeria.

Basically, there are four main areas of real estate. These include:

• Residential
• Commercial
• Industrial
• Land

Recent findings indicate that elite (high worth) individuals in Nigeria invest about 25% of their money in landed and housing properties. This is especially common in places like the commercial capital of Nigeria, Lagos; the administrative capital, Abuja; and the oil-rich city of Port Harcourt. Demand for housing in these regions has surged significantly over the past five years or thereabout. And today, decent apartments in these regions start from 200,000 Naira per year.

The surge in demand for quality housing in the densely populated cities of Nigeria has given rise to several real estate firms, who seek to make these houses accessible, and in few cases, affordable, to prospective tenants. And despite the not-so-affordable housing offered by some of these real estate coys, prospective tenants have little or no choice, but to succumb to their exorbitant, sometimes exploitive, demands.

Today, most property owners, in a bid to reach out to a larger population, employ the service of realtors and consultants, who are colloquially known as Real Estate Agents. These agents are charged with the responsibility of promoting housing and/or landed properties, as well as sourcing customers to purchase or rent these properties.

More often than not, the main hubs of real estate in Nigeria are located in Lagos, Abuja and Port Harcourt; in that order. Hence, if you are looking to set up a real estate company or agency, the aforementioned cities should be your target market.

In a nutshell, real estate is one of the most viable investment and business opportunities in Nigeria today. However, to a large extent, it requires adequate funding, connection, time and perseverance to make it big in the industry.

How to Start A Real Estate Business In Nigeria

As a prospective entrepreneur, real estate is obviously a sector to look at in Nigeria. And setting up a real estate agency or firm, like every other business, has its demands and requirements. Hence, in this section, we’ll be taking you through a simple guide on how to start a real estate business in Nigeria.

To start a real estate business in Nigeria, follow the guidelines below:

• Carry out an in-depth market research/survey to determine the viability of your proposed real estate business.
• Ensure you have sufficient funds, with respect to your proposed business’ scale.
• Prepare a business plan, detailing every key aspect of your proposed business.
• Get your new business registered with appropriate bodies and obtain relevant licenses, basically from Corporate Affairs Commission (CAC) and other relevant regulating bodies like REDAN (Real Estate Development Association of Nigeria).
• Acquire an office space.
• Get the necessary exposure for your new business; create a corporate website, and set up business handles on social media.
• Hire capable hands (staff); marketers/agents, manager, office assistants and so on.
• Reach out to property owners and offer your service to them.
• Advertise your properties; depending on your budget, you can adopt various channels for this, ranging from use of flyers/handbills to TV adverts.
• Connect with established real estate firms or agencies in your region and beyond.
• Stay informed on the latest trends in the real estate sector.

If you do things right and you do it well, you might just be the next real estate tycoon in Nigeria.

Investment Opportunities in Real Estate Business In Nigeria

Properties, especially land, is known to appreciate over time, irrespective of location. As such, buying and selling of landed properties (land flipping) dominate the real estate sector in Nigeria. Although house and office rent/leasing is the most vibrant aspect of real estate in Nigeria, land flipping is worth more.

Most times, a landed property purchased for a token is sold for a fortune. A typical example is Ibeju Lekki in Lagos, which is the hub of real estate in Nigeria today, and would still be for years to come. The main interest in this area stems from the forecasted development that is expected to accompany Dangote Refinery, which is under construction in the area.

Currently, a plot of land in Ibeju Lekki go for as low as 1 million Naira, and this figure is expected to multiply in the next few years. A plot of land purchased for 1 million Naira in Ibeju Lekki today is projected to be worth over 10 million Naira by 2025.

Other investment opportunities in real estate business in Nigeria include:

• Land purchase and development (for rent); this is a long-term investment plan, and after a few years, the ROI usually covers the initial expenditure.
• Land purchase and development (for sale); this is also a big play, as it requires a whole lot of money. Big investors purchase land and build structures on it to sell. Most times, developed properties often go for as high as 100% to 200% of the initial cost (of development).
• Office leasing or rent; this guarantees steady cash inflow. Annual income depends on the location and size of the property.
• Land leasing for telecommunication’s masts; this typically earns the land owner 10 to 15 million (or more) for every 5/10 years.
• House rent; this is probably the most basic real estate investment opportunity in Nigeria. It involves putting up vacant rooms or apartments for rent. In most cases, real estate agencies liaise between landlords/landladies and tenants.

List of Popular Real Estate Companies in Lagos Nigeria

If you are looking to start a real estate business or agency in Nigeria, the below-listed companies are some of the most prominent companies to look up to.

Below is a list of popular real estate companies in Nigeria:

1. Landwey

• Head Office: Lagos
• Interest Area(s): Ibeju Lekki & Lekki axis

2. Cadwell

• Head Office: Lagos
• Interest Area(s): Lagos Island

3. EUC Homes

• Head Office: Lagos
• Interest Area(s): Ibeju Lekki, Lekki axis & Victoria Island

4. Primewaterview

• Head Office: Lagos
• Interest Area(s): Lagos Island

5. Christal Homes

• Head Office: Lagos
• Interest Area(s): Lekki, Ibeju Lekki & VI

6. Cortts

• Head Office: Lagos
• Interest Area(s): Ikoyi & Lagos Island

7. Jide Taiwo & Company

• Head Office: Lagos
• Interest Area(s): Lagos Mainland & Island

8. Primrose

• Head Office: Lagos
• Interest Area(s): Lagos Island

9. Veritasi Homes

• Head Office: Lagos
• Interest Area(s): Lagos (Mainland & Island).

How Much Do Real Estate Agents Make In Nigeria: See Commission Rate

In Nigeria, real estate agents, consultants, realtors and so on are paid via a commission-based structure. Basically, the real estate commission structure in Nigeria is within the range of 5% to 10%.

The 10% commission structure is, however, the most popular, and it is adopted by most real estate firms / property owners in Nigeria. For instance, prominent real estate coys like EUC Homes, Landwey Investment, Christal homes and so on use the 10% structure to pay their agents.

Real estate commission, in layman term, simply means the percentage paid to an agent or realtor on every sale made. Hence, if an agent sells a property worth 10 million Naira, he/she is entitled to 1 million Naira (10%) or 500,000 Naira (5%) from the sale value.

Do you find this helpful? Kindly share your thought(s) with us in the comments’ section.

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