Real estate, even with the current lull, can still give good returns on investment. Realtors said, returns on investment could be as high as 35 per cent or more which is not bad.
Houses have held their value for years and it is seen as a durable asset into which investment can transcend to future generations.
The rapid population growth in the country is a breeding ground for the lucrativity of this sector as people keep prospecting for houses either to build or rent.
CEO, Bamtale & CO, Isaac Bamtale, told me that people living abroad are really taking advantage of the economic situation thereby sending in money to invest in real estate.
“Apart from feeding and clothing, accommodation is necessary for everybody even when things are tough in the nation people still give priority to buying and renting properties. Almost everyone prefers to have a home of their own since it is safe instead of spending a lot of money on rent.”
According to Bamtale, “No matter what is happening in the country, the real estate sector is booming. People outside the country, because our currency is lower, are bringing in their funds to build houses. Majority of them are taking advantage of real estate, building properties for personal use and for business purposes.”
Challenges Investing In Real Estate
He says, “The issue is that everyone should be empowered because most people do not have access to cash. The few who have access to cash are the ones taking advantage of this opportunity.“
A real estate expert, Darlington Omeh, while explaining that one can make N10 million profit in a swoop, explains, “I bought a plot of land in Ikorodu area of Lagos State in 2011 where I had wanted to develop for a small hotel. I paid N500,000 for the land.
“In 2013, I changed my mind and decided to sell. When I asked the estate agents how much property was going for in that area, they told me the current price as at then was 2 million naira. And that my land which is very close to the main road will go for between 2.5 to 3 million naira.
“If I had bought five plots that was offered to me for 2.5 million then, I would have made N10,000,000 from that single transaction!
“Just like that, N2 million to N2.5 million gain in less than two years for a green horn like me, who was not in any way into real estate investment. Then imagine what the professionals who know the in’s and out’s of the business must be making. That’s just to tell you how lucrative this business is.”