Real estate, even with the current lull, can still deliver good returns on investment. Realtors said the return on investment could be as high as 35% or more, which isn’t bad.
Homes have held their value for years and are viewed as a lasting asset in which investment can transcend future generations.
The country’s rapid population growth is fertile ground for the lucrative industry, as people continue to seek homes to build or rent.
Bamtale & CO CEO Isaac Bamtale told me that people living overseas are really taking advantage of the economic situation, sending money to invest in real estate.
“Besides food and clothing, housing is necessary for everyone, even when things are tough in the country, people always prioritize buying and renting properties. Almost everyone prefers to have their own house because it is secure instead of spending a lot of money on rent. “
According to Bamtale, “No matter what happens in the country, the real estate industry is booming. People from outside the country, because our currency is lower, contribute their funds to build houses. The majority of them are taking advantage of real estate, building properties for their personal use and for business purposes. “
The challenges of investing in real estate
He says, “The problem is everyone should be empowered because most people don’t have access to cash. The few people who have access to cash are the ones who take advantage of this opportunity. “
A real estate expert, Darlington Omeh, while explaining that one can make a profit of 10 million naira at one go, explains: “I bought a land in the area of Ikorodu in the Lagos state in 2011 where I wanted to develop for a small hotel. I paid 500,000 naira for the land.
“In 2013, I changed my mind and decided to sell. When I asked real estate agents how much property was going to cost in this area, they told me that the current price was then 2 million naira. And that my land which is very close to the main road will cost between 2.5 and 3 million naira.
“If I had bought five plots which were offered to me for 2.5 million then, I would have made 10,000,000 N from this single transaction!
“Just like that, N2 million to N2.5 million in earnings in less than two years for a green horn like me, who was by no means in real estate investing. Then imagine what professionals who know the pros and cons of the business need to do. It’s just to tell you how lucrative this business is. “