How To Start a Real Estate Business in Nigeria (2024)
In Nigeria today, real estate business is one particular business that people hardly venture into. Why? It is because it is a business in Nigeria that involves risks and is not meant for those who cannot take risks.
Of course, problems like another party taking over or encroachment of your landed property, government policies, stubborn tenants refusing to pay rent, natural hazards e.t.c are just but a few that can generally affect real estate business any where in the world.
But, one can not undermine the positives, as real estate business is one industry in Nigerian economy that offers good financial gains. This is so because there is plenty of money to be made in the Nigerian real estate industry aside its risks. Note that landed property in the world does not depreciate but appreciates, and Nigeria is no exception.
Also, you do not have to be a bill gates with millions in your account to start off this lucrative business as there are several ways to make money from the real estate industry in Nigeria. Just determine the class of people you want to target in the society, elite, average-income earners or low-income earners.
BEGINNER’S GUIDE ON HOW TO START A REAL ESTATE BUSINESS IN NIGERIA (2024)
Below are useful tips for you on how to start your own real estate business in Nigeria.
STEP 1: CARRY OUT YOUR RESEARCH ON HOW REAL ESTATE BUSINESS OPERATES IN NIGERIA
As it is with other kinds of business, you would have to carry out a thorough research on how the real estate sector works in Nigeria. You should know about the risks involved, the decision makers of the Industry, the laws that guide the operations of the real estate business, how much will it take to start such business, e.t.c
Carrying out a thorough research about the real estate sector will help you succeed on the long-run as you would be prepared for any hitch you might face will establishing your own business.
STEP 2: WRITE A BUSINESS PLAN
A business plan is a formal statement of business goals that are attainable and plans for reaching those goals. It is very important if you want to start-off a real estate business to have a business plan. Writing a business plan gives you a direction of your business. If you have a well written business plan, you may attract investors or sponsors.
Must Read: How To Write A Professional Business Plan
STEP 3: REGISTER YOUR REAL ESTATE BUSINESS TO BE LEGALLY RECOGNIZED
Registration of your real estate business is very vital as it gives your business legal recognition in the eyes of the law. You would have to first register your business with the Corporate Affairs Commission to get a valid certificate to operate as a business in Nigeria.
Also register with associations and agencies that see to the operations of real estate activities in Nigeria. One of such association is Real Estate Developers Association of Nigeria -REDAN.
STEP 4: RENT OR BUILD AN OFFICE AND HIRE PROFESSIONALS
This is crucial to your business success. You cannot preach of running a real estate business in Nigeria without having a befitting office facility to show for it. If you don’t have this set up, it will send the wrong message to your clients and investors.
Get a well furnished office facility, hire professionals like surveyors, architects, engineers, scouts e.t.c who can carry out the business of a real estate agency.
STEP 5: SEEK LOANS FROM BANKS OR PARTNER WITH A WILLING INVESTOR
Unless if you have enough money, real estate business is capital intensive and requires huge investment. If you know you do not have enough money, then it becomes imperative that you try and seek partnership with willing investors. You can also contact banks that are willing for long term loans to enable you start.
STEP 6: HAVE AN ONLINE PRESENCE BY CREATING A REAL ESTATE WEBSITE
This tip adds to your credibility and shows how serious you are with your real estate business. Having a niche website on your real estate business would help investors located you on the internet and also showcase you business on a wide scale.
If you can’t design a professional website or blog for your business, hire a professional to do that for you. Make sure that your website has your contact information for inquiries an an about us page.
STEP 7: ADVERTISE YOUR REAL ESTATE BUSINESS
Advertising your business through a medium of mass communication or through the internet is a sure way to attract clients interested in your services. Advertise your business on newspapers, radio, television stations, blogs, or use google ad words e.t.c. The main thing is to get noticed and you never know when some one would come knocking your door for your service.
THE COST OF STARTING A REAL ESTATE COMPANY IN NIGERIA
The cost of starting a real estate company or business in Nigeria can vary depending on several factors, including the type of business you want to start, your location, and the size and scope of your operations. However, there are some general costs that you can expect to incur, such as:
- Business registration: This includes registering your business with the Corporate Affairs Commission (CAC) and obtaining any necessary licenses or permits. The cost of registration can range from ₦10,000 to ₦500,000 or more, depending on the structure and size of your business
- Office space: If you plan to have a physical office, you will need to factor in the cost of rent, utilities, and furniture. The cost of office space can vary widely depending on your location and the size of your office.
- Marketing and advertising: You will need to spend money on marketing and advertising to attract clients. The cost of marketing and advertising can vary depending on your target audience and the channels you use.
- Technology and software: You will need to invest in technology and software to manage your business, such as a customer relationship management (CRM) system and a property management system. The cost of technology and software can vary depending on the features you need.
- Staffing: If you plan to hire employees, you will need to factor in the cost of salaries, benefits, and training. The cost of staffing can vary depending on the number of employees you need and their experience level.
In addition to these general costs, there are also some specific costs that you may need to consider depending on the type of real estate business you want to start. For example, if you want to be a real estate developer, you will need to factor in the cost of land, construction, and financing. If you want to be a property manager, you will need to factor in the cost of insurance, maintenance, and repairs.
Here is a more detailed breakdown of the costs associated with starting different types of real estate businesses in Nigeria:
- Real estate agency: The cost of starting a real estate agency can range from ₦105,000 to ₦500,000 or more. This includes the cost of business registration, office space, marketing and advertising, technology and software, and staffing.
- Property developer: The cost of starting a property development company can range from ₦255,000 to ₦1,005,000 or more. This includes the cost of business registration, office space, marketing and advertising, technology and software, staffing, and land and construction costs.
- Real estate broker: The cost of starting a real estate brokerage firm can range from ₦55,000 to ₦255,000 or more. This includes the cost of business registration, office space (although an operational office is not compulsory), marketing and advertising, technology and software, and staffing.
CAREER OPPORTUNITIES AVAILABLE IN REAL ESTATE
Below are some opportunities afforded in the real estate sector
1. REAL ESTATE AGENT
Being a real estate agent requires very little capital as your job would mainly involve linking buyers and sellers together. You earn a commission of 30% for every successful deal made. In becoming a real estate agent in Nigeria, you would have to know how to convince people and have great interpersonal skill.
2. REAL ESTATE DEVELOPER
Unlike a real estate agent that does not require much capital, being a real estate developer requires enough capital. A real estate developer carries out tasks like structural development of projects like building of houses and sells to buyers who are interested.
3. REAL ESTATE LEGAL CONSULTANT
If you are versatile with the laws guiding the operation of real estate business in Nigeria, you can venture into this kind of business and serve as legal consultants for people.
4. BLOGGING ABOUT REAL ESTATE
This is another way in which you can earn as you spend your quality time designing a niche blog about real estate. Write interesting and unique articles that try to solve people’s problems in the real estate sector. With time, your blog might attract advertisers and sponsors that will pay you.
References: nigerianfinder,
