The real estate business is undoubtedly one of the most profitable businesses in the world, and it is even more lucrative in a developing country like Nigeria. At some point in our lives, we all have fantasies of our dream homes and owning buildings and lands, which can only be made possible through the real estate business.
Over the years, the real estate market has continued to grow despite the country’s economic downturn. This may be because people will always need homes, office spaces, and lands to build and establish businesses.
So you can now see that if you succeed in this business, you will enjoy mouth-watering benefits and profits.
If you want to learn how to start a real estate business in Nigeria, this guide discusses the basic things you should know.
Types of Real Estate Businesses in Nigeria
The real estate business in Nigeria can be grouped into four categories which are listed below:
- Residential real estate
- Industrial real estate
- Commercial real estate
- Raw Land
Residential Real Estate
Anywhere you go in Nigeria, you will find numerous houses and lands people purchase primarily to live in, such as townhouses, condos, cabins, apartments, etc. They all fall into the residential real estate category.
Commercial Real Estate
Commercial real estate refers to properties owned by companies, businesses and organizations such as hotels, restaurants, grocery stores, office buildings, shopping complexes, etc.
Industrial Real Estate
Industrial real estate deals with properties, such as factories and warehouses primarily used for manufacturing, production, distribution, and storage.
Any undeveloped property with no building is referred to as raw land, and it is under this category. Lands are purchased and sold daily across the nation for diverse reasons, such as agriculture, the building of companies, and residential houses, and they can also be left vacant for future purposes.
Steps to Start a Real Estate Business in Nigeria
Get Some Training
The real estate industry is vast and entails many things, so if you want to be successful in the business, it is best you get some training, learn what real estate is about and where you can come in as an entrepreneur.
Write a Business Plan
A business plan is not entirely necessary for all businesses. However, it goes a long way to help organize and determine the various activities and expectations of the company before and after the startup. So the first step to starting a business is to write a good business plan.
Start as a Freelancer
When you start a real estate company, you will have to work 9 – 5, restricting you from doing anything else with your time. Hence, even if you have gotten some training on how to run the real estate business, starting as a freelancer is the best way to go in this industry.
This will allow you to work with flexibility so you will understand the nitty-gritty of the real estate business before starting your own company. Then, after working as a freelancer for some time, you can continue or move on to start a company.
Register Your Business
If you have decided to start a real estate company, you must register your business with the corporate affairs Commission (CAC) and the Federal Inland Revenue Service (FIRS). This first is mainly for business registration, while the latter is registration for taxation because every business or company in Nigeria is supposed to pay taxes.
Acquire Your Business Office
When working as a freelance real estate agent, you might not need an office, but when you own a real estate company, you need to have an office space and even employ staff to work more efficiently and provide the best services for people.
Buy Properties With Profits
This should be your main focus as a real estate company; you can buy properties and resell them at a higher price or link buyers and sellers together and get a commission; you can also buy properties and keep them to accumulate profits.
As a real estate company, your priority should be to earn and maintain trust and a reputable relationship with your clients. Do ensure you provide excellent services, and put your clients first so they can rely on you to carry out luxurious and expensive real estate transactions and they can also refer your company to other clients. This is the best form of marketing you can do for your business.
In conclusion, creating a brand and a company website is also vital to give people easy access to your services and show transparency in your business operations.