GROWTH OF REAL ESTATE INVESTMENT IN NIGERIA

If you are thinking of investing in Nigeria, but not sure of which sector to invest in, then it is high time you take a closer look at the real estate industry. This sector has experienced tremendous growth in recent years, and it is projected to further increase with opportunities and demand yet to be maximized.

Nigeria is Africa's second largest economy with an emerging middle class eager to shop in modern outlets. Consequently, the worlds largest companies are attracted to Nigeria, and they are in need of offices. Also, the introduction of Eko Atlantic City situated on the former Bar Beach, will attract even more foreign investors to Nigeria. Currently, there is shortage of all type of modern spaces, which is an indication that this will be in favor of landlords in years to come.

Majority of foreign companies in Nigeria, sub-let housing from Nigerian owned property management companies mostly on Victoria Island and Ikoyi. The profitability of housing is attracting many developers into the construction boom. For example, all the plots of land on Banana Island near Ikoyi has been sold. 

Nigerian Finance and Development Forum (NDFF) held in Washington DC 2013, revealed that the Nigerian real estate market is six times bigger than the local stock market currently valued at 12 Trillion Naira. 

Furthermore, the Federal government and World Bank claims that Nigeria is deficit of 16 million units with an estimated price tag of 59.5 Trillion Naira ($381 billion). In order to fill this gap, there is a need to build 720,000 units of housing every year. This gap has created a huge room for anyone wishing to invest in Nigeria.

These facts revealed that despite the low disposable income in the country, the real estate sector has proven to be a viable investment with a high and sustainable ROI.

By Augustine Apuamaga (MBA)
Skype: Austine774