What is Real Estate?
By Irene Itseore.
Real estate is a property consisting of lands or building , Or a huge collection of properties. On the other side, real estate business is the process of buying, selling or renting a property, building, home or land. Real estate agents assist homeowners, businesses and investors buy and sell all four types of properties.
The real estate business can be divided into further parts like loan servicing, residential and commercial properties etc. Examples of residential real estate include undeveloped land, houses, condominiums, and townhouses; examples of commercial real estate are office buildings, warehouses, and retail store buildings; and examples of industrial real estate include factories, mines, and farms.
Real estate in Nigeria is serious business. As a matter of fact, one of the longest-standing industry in Nigeria is the real estate industry. The industry has become a gold mine over the years, and many smart entrepreneurs have tapped into it and are making tons of profit.
Nigerians are always in need of residential apartments, office building, and commercial outlets. They look to either buy or rent 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.
Why is Investing in Real Estate in Nigeria Important?
Real Estate in Nigeria, like in many parts of the world is an ever-increasing-in-value investment that must not be slept on! Many people are oblivious of this. A few know about this basic fact and have been drinking from its rich and profitable stream.
Today, many people are very skeptical about venturing into real estate investment due to a number of factors. However, Expert Properties expressly states that “real estate has many advantages over investing in stocks, bonds or mutual funds.”
Some Nigerians know this and have since dipped their legs into this money-generating industry.
We do not dispute the fact that some have not joined the train of real Estate in Nigeria because they deem it too costly an investment. Others are simply just scared of investing for fear of being duped or scammed like some less informed people.
Yet, the truth remains that, the Real Estate industry in Nigeria is growing and is really profitable.
According to Reuters, “a successful real estate investment can earn returns as high as 30-35 percent, while rental income yields in cities such as Lagos and Abuja can easily reach 10 percent, developers and estate agents say.”
So, let’s say you have an opportunity of purchasing a landed property for 30 million Naira, not going for the purchase is losing 900,000- 1 million naira. And the value increases per year.
Thus, for every investment not put into real estate investment in Nigeria, an accumulating loss is procured yearly as the value of landed properties keeps increasing.
By Irene Itseore
Content Creator Teqbox Properties
