How to Start a Real Estate Business in Nigeria | Steps_by_Steps Procedures.
How to Start a Real Estate Business in Nigeria
Real estate is considered to be one of the most profitable and growing businesses around the world. In Nigeria, you can make a fortune by starting a real estate business, whether as a real estate agent or as an investor.
See Also: How to Write a Business Plan
This exponential growth and demand for real estate could be attributed to the growing middle class and foreign visitors from neighboring countries and afar, who usually have long stays in the country.
How to Start a Real Estate Business
Starting your own real estate business is a good carrier option that comes with a lot of difficulties and challenges. The market is a well established one with tough competition from numerous new and established players. However, with the stiff competition in the industry, you could build a unique brand and stand out amongst the rest.
What is Real Estate?
Real estate is a property (consisting of land or buildings) or a huge collection of properties. On the other side, real estate business is the process of buying, selling or renting a property, building, home or land. Real estate agents assist homeowners, businesses and investors buy and sell all four types of properties.
The real estate business can be divided into further parts like loan servicing, residential and commercial properties etc. Examples of residential real estate include undeveloped land, houses, condominiums, and townhouses; examples of commercial real estate are office buildings, warehouses, and retail store buildings; and examples of industrial real estate include factories, mines, and farms.
Real Estate in Nigeria
Real estate in Nigeria is serious business. As a matter of fact, one of the longest-standing industry in Nigeria is the real estate industry. The industry has become a gold mine over the years, and many smart entrepreneurs have tapped into it and are making tons of profit.
Nigerians are always in need of residential apartments, office building, and commercial outlets. They look to either buy or rent buildings and structures of their choice, and they sometimes need to consult real estate agent or expert before making their choices.
How to Start a Real Estate Business in Nigeria?
However, In order to be successful in the real estate industry, one should have good knowledge and information in this field. This basic guide will equip you with the knowledge and information you need to acquire to start your own very successful real estate business in Nigeria.
1. Have a Convincing Business Plan
You should understand that you’re going into a competitive, as such, you need a good business plan to conquer this market. Real estate investing is just like starting any other career in which you can’t start on a whim without having a specific business plan in mind.
A business plan is vital for any real estate investor, and one of the best advice you’ll get in the housing market is to start out small and plan, plan, plan! This step is especially important if you’re planning on becoming a real estate investor for the long term. In this case, you want to grow your real estate investment portfolio strategically.
2. Build a Unique Brand
As an entrepreneur, you need to build a brand for your business. Brand credibility is important in building a successful business. Additionally, you need to understand that you’ve invested a lot of money in it, as such, thrive to build your business. Branding is all about creating a perception about your business in the minds of people.
To turn your real estate business into a trustworthy brand, you need to give your customers more than enough value for their money and build a relationship by engaging with them on a personal level. Also, set your real estate business apart from the competition by investing in premium branding identities such as logo, website, adverts and more.
3. Legally Register the Business
If you really want to make this business to the highest level possible, then you have to legalize its existence by registering the business with the Registrar General’s Department (RGD). Follow our guide on how to register a business in Nigeria to get started.
Also, watch out for the rules and regulations guiding professional real estate bodies in Nigeria to ensure that you are not operating against the law.
4. Raise the Required Capital to Start
The issue of start-up capital can be answered with a good business plan. A good plan will outline the minimum amount of money it will require to get you started depending on the scale at which you choose to start. If your savings and financial capacity are not enough to start, you can source for alternative funding.
Furthermore, the real estate business is very capital intensive and requires a huge amount of investment. If you do not have enough it is important that you seek investors. You can look for equity investors that can give you enough leverage at the start and accelerate growth.
5. Get Started & Get Working
The last step to starting a real estate company in Nigeria is execution. Execute on everything that you’ve developed in your business plan. Execution comprises of your day to day activities in the business. This includes the closing of deals, marketing, networking, client orientation, human resources etc.
Starting a real estate business ain’t for the faint of heart. So, to be successful in the real estate business, you must be prepared to face the challenges. At a personal level, and as a business owner, nurture your ambitions and become a goal-oriented and organized person. Keep in mind that the real estate sector is not about achieving instant success. Instead, it is a long game, which requires a lot of patience.
In Summary, to start a successful real estate business in Nigeria, you need to have a feasible and realistic plan. With a good business plan, you can push your vision to own an estate. Additionally, the real estate business in capital intensive, you could have to source for external funding if need be.
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