How To Start a Real Estate Business in Nigeria

Starting a real estate business in Nigeria is one of the best opportunities in Nigeria available to anyone seeking to generate cash flow.

Last month, the media in Nigeria was awash with what Shina Peters and Jim Ovia invested ₦20 million in 1990. While Shina built a house with ₦20 million, Jim Ovia started Zenith Bank with the same amount. Many argued that Shina Peters investment decision wasn’t a good option as opposed to Jim’s. Although a house may be considered a liability because it can get dilapidated, housing and real estate business in Nigeria is an asset worthy investment.

According to Robert Kiyosaki, finance guru and real estate tycoon,

An asset is only something that puts money in your pocket. If you have a house that you rent out to tenants, then it’s an asset. If you have a house, paid for or not, that you live in, then it can’t be an asset. Instead of putting money in your pocket, it takes money out of your pocket. That is the simple definition of a liability. The simple definition of an asset is something that puts money in your pocket. This is accomplished through four different categories, one of which is real estate. When I say real estate, I don’t mean your personal residence, which is a liability. What I mean is investment real estate, which is a great investment because it puts money in your pocket each month in the form of rent.

This is the difference between Assets and Liability. If you buy a car for ₦20 million today, in 20 years’ time, you will be ashamed to drive it. On the other hand, if you invest that same amount in a lucrative business or in an asset, it may be worth billions in 20 years.


If you desire to invest the little money you have today (because every penny in your hand is like a seed which when sown, bears more seeds later in the future) in a worthy investment that has almost 400% appreciation rate, then real estate investment in your best bet.

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The profit potential in real estate business in Nigeria is huge. For example, a plot of land in Ikorodu sold for ₦500,000 in 2011 appreciated to ₦3 million in less than three years.

ALSO READ: The 2017 Outlook on the Real Estate Sector in Nigeria

This article primarily addresses real estate investment categories which are peculiar to Nigeria, particularly for rookie real estate investment business persons.

Below are part of the aspects of real estate you can easily make investments thereby making your own earnings without any hassle. Once you start to flourish in the business, you can easily enlarge your portfolio or simply launch big from the start.


Land Flipping

This suggests acquiring of land and immediately resell for profit gains. Land flipping is one of the smartest investment options in the business and usually, requires little to no effort whatsoever. With your money and an understanding of the real estate business and you are good to operate. You will require a tangible sum of money if you are aiming to generate hundreds of millions nonetheless you can begin on a low-budget by purchasing a single plot and expand to buying tens of plots and acres of lands and consequently continue trading year-round.


Open Space Leasing

Open space leasing operates in a simple, easy and unique process. Acquire an investment property in a fantastic location then lease it on the market for makeshift use. You can either lease it to churches or establishments that need to build a makeshift outlet like a car wash and mechanics. They will be paying for a periodic rental fee but at the same time, the property continually appreciates for prospective future trade. It is exactly like borrowing money for an individual and being paid double interest nevertheless getting your money back.

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Real Estate Agency

This one is common and easiest of them all. Real Estate Agency is not necessarily an investment per se but service rendering. This is how it operates. You go around and seek out properties to let and for sale, advertise and market your service and help secure clients for the property owners. You get to be paid a certain percentage as commission based on the price the property is sold or rented. You can begin with little or no money and if you are smart enough, you will quickly evolve to become a giant real estate investor.

ALSO READ: Estate Agents and Agency Fees in Nigeria

Property Development

Property development is the category where the top players in the industry are mostly found. They acquire landed properties in nice locations, develop it into luxury apartments, commercial structures, and a lot more and then trade at very high-profit margins. Say you decided to invest N200 million in developing a property, you should plan to sell for double that amount.


House/Office Rent

Build a house and put it up for rent, make profits all through the calendar month for a lifetime. That is precisely how this operates there is however much more to it.


Many people have the assumption that to become a successful real estate agent in Nigeria, you just need to be good in convincing people to buy properties and houses. Of course, persuasion skills and good communication skills are necessary to succeed as an estate agent but it doesn’t end there. You also need to be familiar with the intricacies of the real estate industry. Going for a good real estate course or training with any real estate school in Nigeria is very important. Obtaining a property license or real estate license in Nigeria is required to practice real estate if you want to be taken seriously. Finally, you need to hone your skills and gain experience under an established real estate firm. The industry is regulated by The Real Estate Developer’s Association of Nigeria. It is the principal agency of the organised private sector recognised by the government and approved by the Federal Mortgage Bank of Nigeria (FMBN) to facilitate the delivery of affordable mass housing for Nigerians.

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ALSO READ: Buy a Property, Pay in 48 months Without a Mortgage

You can become a player in the real estate business world by accumulating money in your escrow account till you are able to take advantage of the opportunities that will come your way. Play at the bottom of the pyramid then grow upwards gradually. You should bear in mind that as juicy as the industry is, there are both advantages and disadvantages in the real estate investments. You win some, you lose some till you become an expert in the field.

Head on to start building your investment portfolio in the real estate business sector.




    1. Hello Daniel Onucheyo,

      Congratulations to you on taking the first step by considering to start a real estate business in Abuja. Having been in the construction industry for twenty years, this business is definitely a good fit for you. Like it was stated in the article, there are several areas to consider should you decide to start a real estate business. You might choose to consider property development since it is in line with your industry.

      However, I am certain that you will find the following articles helpful as you journey into the real estate world

      All the best!

  1. I want to invest money into real estate.
    I do not have all it requires to start but wants to work with a real estate company.

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