Are you wondering about how to start a real estate business in Nigeria? Real estate is now regarded as one of the most profitable and rapidly growing industries. You can make a lot of money in Nigeria today by starting a real estate business, whether as a real estate agent or as an investor.
Starting your own real estate business is a rewarding career path that is fraught with difficulties and challenges. The market is well established of course and has numerous new and established players vying for market share.
However, don’t be intimidated by the competition; instead, focus on creating a distinct brand that stands out from the crowd.
What is Real Estate?
Real estate is either a single property (land or buildings) or a large collection of properties be they land or buildings. A Real estate business, on the other hand, is the process of purchasing, selling, or renting a property, building, home, or land. Real estate agents assist homeowners, businesses, and investors in the purchase and sale of all four types of real estate.
There are four types of real estate: residential, commercial, industrial, commercial and land. Residential real estate includes any property used for residential purposes. If apartment buildings are used as a residence for purpose of earning money, then they also fall into a commercial property.
Industrial real estate refers to spaces or buildings where the production of goods takes place while land includes vacant land, working fields, and barren land.
The real estate industry is further subdivided into loan servicing, residential and commercial properties, and so on. Undeveloped land, houses, condominiums, and townhouses are examples of residential real estate; office buildings, warehouses, and retail store buildings are examples of commercial real estate; and factories, mines, and farms are examples of industrial real estate.
How To Start A Real Estate Business In Nigeria
In Nigeria, real estate is a serious business. The real estate industry is, in fact, one of Nigeria’s oldest industries. Over the years, the industry has become a gold mine, and many astute entrepreneurs have tapped into it and profited handsomely.
Nigerians are constantly in need of residential apartments, office space, and retail outlets. They look to buy or rent buildings and structures of their choice, and they may need to consult a real estate agent or an expert before making their decisions.
This explains why the real estate industry is brimming with business opportunities and is ranked as the fifth-largest contributor to Africa’s largest economy’s GDP. How to start a Real Estate Business?
However, in order to be successful in this industry, one must have a thorough understanding of the subject matter. This basic guide will provide you with the knowledge and information you need to start your own highly profitable real estate business in Nigeria.
1. Have a strategic business plan
First and foremost To be able to conquer this market, you must strategically plan your business. Real estate investing is similar to starting any other business in that you cannot begin on a whim without a specific business plan in mind.
A business plan is essential for any real estate investor, and one of the best pieces of real estate advice you’ll ever receive is to start small and plan, plan, plan! This step is especially important if you intend to become a long-term real estate investor. In this case, you want to strategically expand your real estate investment portfolio.
2. Create a distinct brand
Brand credibility is critical in building a successful business in Nigeria, especially when millions of Naira are at stake. Branding is all about instilling a positive image of your company in the minds of your target audience.
To build a relationship with your customers and turn your real estate business into a trustworthy brand, you must provide them with more than enough value for their money and engage with them on a personal level. Also, distinguish your real estate company from the competition by investing in premium branding identities such as a logo, website, advertisements, and more.
3. Register the company legally.
If you truly want to take this business to the next level, you must first legalize its existence by registering it with the Corporate Affairs Commission (CAC). If you can’t afford to register your business name with the CAC registering as a Limited Liability Company (LLC) Business Name with CAC will suffice for now (LLC).
Also, keep an eye out for the rules and regulations that govern professional real estate bodies in Nigeria to ensure that you are not breaking the law. Association of Estate Agents in Nigeria (AEAN), Real Estate Developers Association of Nigeria (REDAN), and Nigerian Institution of Estate Surveyors and Valuers (NIESV) are some of the popular real estate professionals institutions to keep an eye on.
4. Raise the required capital to start
If you conducted thorough research for your business plan, you should have determined the bare minimum of funds required to get you started, depending on the scale at which you choose to begin. If your savings and financial capacity are insufficient to get started, you can look for alternative funding.
The real estate industry is very capital intensive and requires a significant amount of investment. If you don’t have enough, you should look for investors. You can look for equity investors who can provide you with enough leverage to get started and accelerate your growth.
5. Get Started and Get to Work
Execution is the final step in establishing a real estate holding company. Follow through on everything you’ve planned in your business plan. A large number of Nigerian businesses fail as a result of poor execution.
Execution refers to your day-to-day operations in the business. This includes deal closing, marketing, networking, client orientation, human resources, and so on.
You cant start a real estate business or any business as a matter of fact if you’re not ready to give it your all. So, if you want to be successful in real estate, you must be willing and ready to face challenges.
Develop your ambitions and become a goal-oriented and organized individual on a personal and professional level. Remember, success in real estate, like success in any other business, does not happen overnight. Instead, it is a long-term game that requires tenacity, patience, and consistency.