7 Reasons To Invest In Nigerian Real Estate

Are you ready to embark on a lucrative journey?

In the dynamic landscape of investment opportunities, Nigerian real estate stands tall, beckoning savvy investors with promises of substantial returns and financial security.

According to the Federal Mortgage Bank of Nigeria, the nation faces a staggering housing deficit of 22 million units, requiring a massive ₦59 trillion investment to bridge this gap.

However, this seemingly negative deficit presents a golden opportunity for astute investors to capitalize and reap substantial profits.

Unlocking Wealth: 7 Reasons You Should Invest in Nigerian Real Estate

1. The Time-Tested Appreciation of Real Estate

Picture this: a plot of land in Lekki Phase 1, once a modest ₦50,000 investment in 1997, has blossomed into a colossal ₦500 million in present-day value.

The real estate sector in Nigeria is experiencing exponential growth, transforming seemingly modest investments of ₦100,000 six years ago into million-Naira assets today.

A genuine investment in land is not just a financial commitment; it’s a promise of value that appreciates over time, offering a secure path to wealth accumulation.

2. Security Beyond Market Fluctuations

In a world where economic uncertainties and policy shifts can erode the value of traditional investments overnight, real estate emerges as a beacon of stability.

Unlike funds deposited in banks susceptible to inflation or government policies, real estate investments provide a robust shield against financial uncertainties.

Your investment doesn’t just sit; it thrives, resilient to the volatile winds of economic change.

3. The Power of Passive Income

Imagine making money while you sleep, and no, it’s not a fantasy.

Real estate is a powerhouse of passive income, offering investors a stream of revenue without active involvement.

The bustling city of Lagos attests to this reality, with 75% of landowners strategically developing rental properties.

Real estate rentals become a perpetual income stream, turning your investment into a reliable source of financial growth.

4. Meeting the Urgent Need for Housing

Beyond the realms of profit, investing in Nigerian real estate is a noble endeavor.

The nation grapples with a significant housing shortage, and your investment can play a pivotal role in meeting this demand.

By providing housing and comfort to those in need, you not only contribute to a fundamental societal need but also position yourself at the forefront of a burgeoning market.

5. Riding the Wave of Economic Growth

Nigeria, with its vibrant economy, is a promising hub for real estate investors.

The country’s economic expansion creates a favorable environment for investment, with burgeoning industries and a rising middle class driving the demand for quality housing.

Seizing this opportunity now positions you at the forefront of a burgeoning market, ready to ride the wave of economic growth.

6. Diversification for Financial Resilience

Diversifying your investment portfolio is a well-established strategy for financial resilience.

Nigerian real estate offers a unique avenue for diversification, balancing the risks associated with more volatile assets.

As the real estate market in Nigeria continues to flourish, your diversified portfolio becomes a fortress against the uncertainties of other investment channels.

7. Government Initiatives and Support

The Nigerian government recognizes the pivotal role of real estate in economic development.

Various initiatives and policies are being implemented to foster a conducive environment for real estate investment.

By aligning your investments with government-backed strategies, you not only safeguard your interests but also position yourself as a strategic partner in the nation’s development.

Why Foreigners Should Invest In Nigerian Real Estate

Are you aware of the significant impact of Nigeria’s real estate sector on the country’s economy?

In 2020, it contributed a notable 6.39 percent to Nigeria’s GDP, amounting to approximately $7.3 billion, as per the National Bureau of Statistics.

What’s even more intriguing is that Nigeria has emerged as the top destination for real estate investments in Africa, garnering an impressive $523 million in investments over the last two decades, as revealed by BusinessDay.

With a housing deficit surpassing 22 million units, the highest in Africa, and a 4.1 percent urban population growth rate, it’s evident that the demand for housing in Nigeria is soaring. According to the World Bank, over half of the population already resides in urban areas. The UN Department of Economic and Social Affairs suggests an annual construction of 700,000 housing units is imperative to meet this surging demand.

Nigeria’s Real Estate Market is not only large but valuable and it’s full of opportunities for smart investors and first-time buyers to key in and make a good profit.

Don’t miss out on the potential this sector holds!

What makes Real Estate in Nigeria an interesting investment opportunity for foreign nationals?

In the dynamic landscape of global investments, Nigeria emerges as a beacon of opportunity, particularly in the realm of real estate. The country’s burgeoning economy has become a magnet for foreign investors seeking robust returns and diversification. Here’s why savvy investors are recognizing the immense potential and saying, “Invest in Nigerian Real Estate.”

1. The Economic Surge: A Lucrative Investment Opportunity

Nigeria stands at the forefront of Africa’s economic renaissance, and discerning investors are turning their attention to the real estate sector. The burgeoning economy creates a fertile ground for substantial returns, with real estate being heralded as a cornerstone for wealth creation. As industries thrive and urbanization accelerates, the demand for housing, commercial, and industrial spaces soars, presenting an opportune moment to seize the advantages that investing in Nigerian Real Estate affords.

2. Population Boom: A Vast Consumer Market Beckons

As the most populous country in Africa, Nigeria boasts a consumer market of unprecedented scale and vitality. The surging population fuels an insatiable demand for housing, commercial hubs, and industrial zones. With projections indicating an imminent population explosion in the coming years, now is a compelling time for investors to partake in the exponential growth by wisely choosing to invest in Nigerian Real Estate.

3. Diversification Delight: Strengthening Investment Portfolios

Astute foreign investors are actively seeking ways to fortify their portfolios through diversification. Nigerian real estate offers a unique avenue for diversifying investment holdings. By adding the stability and potential returns of Nigerian real estate assets, investors can achieve a well-balanced and resilient portfolio, safeguarded against the uncertainties of the global market.

4. Agrarian Opportunities: Fertile Grounds for Investment

Beyond the urban landscape, Nigeria’s vast fertile lands and favorable climate present a golden opportunity for those interested in agricultural investments. Foreign investors eyeing the agricultural sector can tap into the country’s potential as a lucrative destination, further amplifying the appeal of investing in Nigeria beyond its real estate offerings.

5. Natural Bounty: Tapping into Nigeria’s Resources

Nigeria’s wealth extends beyond its vibrant economy to its abundant natural resources, including oil, gas, and minerals. Savvy investors looking to capitalize on these resources find a welcoming environment in Nigeria. The potential for substantial returns in these sectors adds another layer of attraction for those considering the prudent move to invest in Nigerian Real Estate.

6. Tourism Treasures: A Potentially Profitable Investment in Diversity

With its rich cultural heritage, diverse landscapes, and a myriad of tourist attractions, Nigeria is poised to become a profitable destination for investors keen on the tourism sector. The untapped potential of Nigeria’s tourism industry adds an exciting dimension to the array of investment opportunities, beckoning those with the foresight to invest in Nigerian Real Estate and beyond.

7. Stability and Confidence: The Political and Business Environment

Recent years have witnessed a remarkable period of political stability in Nigeria, coupled with a thriving business environment. The resulting surge in confidence among foreign investors is palpable. Those considering investment options are increasingly drawn to the country’s stable political climate, viewing it as a testament to Nigeria’s commitment to fostering an environment conducive to business growth.

Can a foreigner own land in Nigeria?

The law governing this transaction is the Acquisition of Land by Alien Law (ALAL), according to the provisions of the Acquisition of Land by Alien Laws of Lagos State, foreigners can own land in Nigeria through the following means:

1. Leasing:

Foreigners can lease land in Nigeria for a specified period, usually between 50 to 99 years pending the approval of the Governor. This is one of the most common ways for foreigners to own land in Nigeria.

2. Incorporating a Nigerian company:

Foreigners can incorporate a Nigerian company and use it to purchase land in Nigeria. This is a common method used by foreign investors.

3. Joint venture with a Nigerian:

Foreigners can enter into a joint venture with a Nigerian citizen, who can purchase the land on behalf of the foreign investor. This method is typically used when the foreign investor does not have the necessary documentation to purchase land directly.

4. Power of attorney:

Foreigners can grant a power of attorney to a trusted Nigerian, who can then purchase land on their behalf. This method is typically used when the foreign investor is unable to travel to Nigeria to complete the purchase process.

How can a foreigner get started investing in Nigerian Real Estate?

As a foreign investor, you may find that investing in real estate in Nigeria requires a little extra preparation and planning, but there are still several ways to get involved in the market. Here are a few options to consider:

1. Direct property ownership:

You can purchase a property outright and hold it as an investment, renting it out to tenants to generate rental income. You will need to set up a local company or trust to legally own the property, and seek advice from a local lawyer or business consultant.

2. Joint ventures:

You can partner with local investors or developers on a property project, sharing the risk and costs associated with the investment, while still benefiting from any profits generated.

3. Real estate investment trusts (REITs):

This is one of the ways you can invest in Nigerian Real Estate without taking on a lot of responsibility. Investing in a REIT allows you to own a stake in a portfolio of properties, giving you exposure to real estate investments without the responsibility of directly managing the properties.

4. Real estate funds:

Real estate funds invest in a portfolio of properties and other real estate assets, such as REITs. Investing in a real estate fund can provide exposure to a diversified portfolio of real estate assets, reducing the risk associated with a single investment. This is also a great way to invest In Nigerian Real Estate.

5. Crowdfunding:

If you want to invest In Nigerian Real Estate, crowdfunding platforms allow you to invest in real estate projects, including the purchase of properties and the development of new real estate projects.

Documents needed by foreigners when buying property in Nigeria

When buying property in Nigeria, foreign nationals will typically need the following documents:

1. Proof of identity:

Foreigners will need to provide a valid passport or government-issued ID.

2. Proof of address:

Foreigners will need to provide proof of their current address, such as a utility bill or bank statement.

3. Certificate of Incorporation:

If the foreigner is purchasing the property through a company, they will need to provide the company’s certificate of incorporation.

4. Tax Identification Number (TIN):

The foreign national will need to obtain a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS) in Nigeria.

5. Letter of Administration:

If the property being purchased is part of an estate, a letter of administration may be required to confirm the right of the administrator to sell the property.

6. Power of Attorney:

If the foreign national is unable to travel to Nigeria to complete the purchase process, they may grant a power of attorney to a trusted Nigerian to act on their behalf.

7. Survey Plan and Deed of Assignment:

A survey plan and Deed of Assignment will be needed to confirm the boundaries of the property and transfer ownership to the foreign national.

8. C of O (Certificate of Occupancy):

This is a document issued by the state government which confirms that the property is available for allocation and the right of the owner to occupy and use the property.

Our Conclusion

If you want to invest In Nigerian Real Estate, it is important to note that the process of buying property in Nigeria can be complex and time-consuming, so it is recommended to work with a real estate professional like RealEstateMoses who is familiar with the local market and regulations.

If you need assistance securing your property transactions in Nigeria then contact RealEstateMoses, a luxury real estate service focused on helping real estate investors and first-time buyers get real value for their money.

Moses Oyong

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Moses Oyong is a luxury real estate advisor with a passion for arts and culture, music, fashion, and all things luxurious. With a keen eye for beauty and attention to detail. I strive to help my clients find their dream homes that reflect their unique sense of style and taste whilst providing them with the right information to ease the stress of the decision-making process.

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