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5 Important Points To Note About Real Estate in Nigeria

Back in the day, real estate was only for the wealthy, but now anyone can start with little or nothing. Things have definitely changed in Nigeria. Real estate has a strong presence, with new people, agencies, and corporations emerging every day. There are some important points to note about real estate in Nigeria

1. Understand Land Laws And Titles

Just to add on, it's important to note that legally binding property transactions can only be conducted on properties that have proper titles registered at the state's registry. It's a crucial step to ensure the validity and security of the transaction.

The major title you should always look out for is the C of O. The certificate of occupancy is a document that confirms the lease of a piece of land to an individual for 99 years.

Other land titles you should know are:

  • Governor's Consent: a governor’s consent can be considered as a title because it confers authenticity on a land. Like the name implies, it is a duly signed and stamped deed of assignement by the governor of the state.

  • Excision: Excision is the process by which the government carves out areas in places it deems urban areas and officially releases and recognizes the ancestral owners as the lawful owners of that portion.

  • Gazette: This excised portion is subsequently recorded in the government’s official journal called the gazette. This is a recognized land title.

2. Choose the right Location

The popular saying goes; real estate is all about location location location! Same goes for Nigeria! No matter what strategy you go for, choosing the right location is key!

3. Property Development in Prime Locations

One thing that prime locations do for you is that your property sells itself. But the things about prime locations is that they are very expensive. So what happens if you do not have the budget for a prime location? Then consider areas that share boundaries with these prime areas.

In Lagos, Real Estate and location value has been a linear progression from VGC Chevron all the way to Ibeju Lekki

4. Take Advantage of Urban Areas

Lagos State is classified as an urban area, which falls under global acquisition. This indicates that the government has a vested interest in the region and has plans for significant projects and infrastructure development. Exciting times ahead for Lagos!

As per the Land Use Act, the government reserves a significant portion of land in this area for its own use, both presently and in the future. The remaining free portions can be transferred to ancestral landowners through a process of regularization or excision, allowing them to utilize the land as they see fit.

This has led to a remarkable transformation of the once remote location into a bustling residential and commercial hub, attracting billions of investments. Notable projects like the Dangote Refinery, Alaro City, and Free Zones have turned it into an investment hotspot. It's like an eldorado for investors!

5. Choose the right estate investment strategy

Broadly speaking they are four (4) major Real Estate investment strategies:

  • Flipping of land and houses: it is also referred to as land/property banking, you purchase a property to sell in the quickest time possible for profit.

  • Property development: When it comes to property development, it typically involves buying land, constructing different structures, developing necessary infrastructure, and then selling to buyers. The options for buyers can range from purchasing at the carcass stage (lintel level), fully finished with fittings and plumbing, or even fully furnished. It's all about providing various choices to meet the buyers' preferences!

  • REITS: is a trust that pools fund from individual investors, acquires, operates and/or manages income-generating real estate.

  • Rentals: Rentals are one of the oldest, safest, and most steady source of income from Real Estate.



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