How to Start a Real Estate Business in Nigeria: Without a doubt, the real estate sector is one of the most profitable in the world. Discover the popularity of luxury homes in Lagos and elsewhere. Almost everyone dreams of living in one of these luxurious residences. In this field, whoever succeeds will have struck gold. One of the reasons the real estate sector is constantly mentioned is its apparent resilience to recession.
Despite the slowing economy, the sector has produced excellent returns on investment. This could be due to the need for a home, which is what real estate is all about. The need for housing and offices is alarming in cities like Lagos which have such a large population and are an economic powerhouse. It is no surprise that many people in Nigeria want to work as real estate brokers.
There are literally thousands of real estate brokers in Nigeria. Therefore, to stand out, you need to keep certain things in mind. This article will show you how to succeed as a Nigerian real estate agent.
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What is real estate?
A property (land or buildings) or a large group of properties is called real estate. Real estate business, on the other hand, is the process of buying, selling or renting a property, building, house or land. Homeowners, businesses, and investors use real estate agents to buy and sell the four types of properties above.
Servicing of loans, residential and commercial properties are other aspects in which the real estate sector can be further broken down. Undeveloped land, houses, condominiums and townhouses are examples of residential real estate; office buildings, warehouses and retail store buildings are examples of commercial real estate; while factories, mines and farms are examples of industrial real estate.
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Real Estate in Nigeria
In Nigeria, real estate is a big industry. In fact, it is one of the oldest industries in Nigeria. Over the years, the business has turned into a gold mine, and many astute entrepreneurs have exploited it and profited generously from it. Nigerians are in continuous need of housing, offices and retail stores.
They are looking to buy or rent the buildings and structures of their choice, and they may need to consult a real estate agent or specialist before making their decision. This explains why the real estate industry has a plethora of business prospects and is the 5th largest contributor. to the GDP of Africa’s largest economy.
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How to Start a Real Estate Business (Step by Step)
A thorough understanding of the subject is necessary to succeed in this profession. These basic steps will teach you everything you need to know to start your own highly profitable real estate business in Nigeria.
1. Do a study on the real estate market: You must first do basic research and learn the ins and outs of the real estate industry. This will help you become a long-term field agent. It would be simple to meet with real estate agents for more information while you conduct your investigation.
You should be aware of the pros and cons of working as a real estate agent. You should also consider how Nigeria’s economy and lifestyle have affected the real estate sector.
As a fan, you need to immerse yourself in the details, such as risks involved, key industry decision makers, qualifications, operating laws, and money needed to get started.
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2. Get training: Because the real estate market is so large, you will need training to be able to work efficiently and economically. You can get training from a well-established real estate company. You will be able to learn in a structured environment alongside other experienced real estate professionals.
Another way to get an education in real estate is to be hired as an agent by the company.
If you want to work as a self-employed real estate agent, you can always get some training by taking business or real estate school courses. These programs will help you improve your communication skills and teach you how to build a strong network of brokers and salespeople.
3. Prepare a business plan: You have to plan if you want to be a successful independent real estate agent in Nigeria. You would have to set the goals and targets you want to achieve with the funds you have if you had a plan.
Your strategy may change in the future, so don’t feel like you can’t go back. It is very beneficial if you have written things down. At the very least, you should have a rough idea of what you want to accomplish in the years to come. This is what I call the “calculator moment” in my own life. Due to the widespread use of calculators to try to understand the virtual financial aspects of your trading strategy.
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4. Raise the funds you’ll need to get your business off the ground: You should have calculated how much money you will need to get started based on the scale you want to start on if you have completed your business strategy study. You may need to look for more money if your savings and financial capacity are insufficient to start.
Real estate is a capital-intensive industry that requires a large sum of money. It is essential to seek investors if you do not have enough capital. You can seek out stock investors to help you start your business and grow quickly.
5. Legally register the business: No one takes a business that is not registered seriously. If you are a licensed real estate agent, you need to register your company as soon as possible in order to appear legitimate to the public.
The Corporate Affairs Commission is a government agency in Nigeria that is in charge of business registration.
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6. Get offices and hire staff: You will need certain contact information if you want to own a real estate agency. Phone numbers, social media links, email addresses, and most importantly, a physical address would all be included in this information. Clients may wish to visit you in person on occasion. This is when an office suite becomes necessary.
By the way, the greater the demand for division of labor, the more customers you will have. You will need to hire employees to help you with your task at this point.
7. Advertise your business: Advertising your real estate agency on the right platform will help your business get the right audience and clients. However, as a must-do, you must market your business. Don’t entrust the future of your business to connections or a shady corner in an exposed place.
Take advantage of the advancements in technology and, more specifically, social media that this century has to offer. Television, radio, newspapers and word of mouth are among the advertising choices (which are the most powerful).
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8. Build a network of connections: Every bureaucratic action in Nigeria makes it harder to know who you know. Your real estate agency will inevitably fail if you lack connections. You can, however, amplify this influence with an online presence. Make sure you get along well with other real estate agents, sales brokers, sellers and buyers, and other parties involved.
9. Start and work: The final step in starting a real estate company is putting your plan into action. Implement what you have planned in your business plan. Many Nigerian businesses fail due to poor execution. The day-to-day operations of your business are called execution.
This involves, among other things, closing deals, marketing, networking, customer orientation and human resources.
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It is not for the faint-hearted to start a real estate company. To be successful in the real estate business, you must be willing to take risks. Develop your aspirations personally and as a business owner, and become a goal-oriented and organized person. Keep in mind that real estate isn’t about getting rich quick, it takes a lot of patience.
Edeh Samuel Chukwuemeka ACMC, is a law student and certified mediator/conciliator in Nigeria. He is also a developer with knowledge in HTML, CSS, JS, PHP and React Native. Samuel is determined to change the legal profession by creating web and mobile applications that will make legal research much easier.