Real Estate Business is the most lucrative business niche in Nigeria whether as a real estate agent or as an investor. The rapid population growth rate in Nigeria made the real estate sector remain very lucrative as daily people are looking for houses to rent or build a home of their own.
Although, starting a real estate business require some substantial amount of money to start but you can still start a real estate business with minimal or no money. The list of established companies in the real estate business is high, however, the is always a place for new and small businesses in the large field.
Before diving into our topic, let’s go through most frequently asked questions in this field; these are:
What is Real Estate?
Real estate is a property (consisting of land or buildings) or a huge collection of properties. While, a real estate business is the process of buying, selling, brokering, or renting of property, building, home, or land for commercial or personal use.
Types of Real Estate
Land is the baseline for all types of real property. Land typically refers to undeveloped property and vacant land. This is a kind of business where you buy land/property at a cheaper rate and resell to get profit. Developers acquire land and combine it with other properties (called site assembly) and rezone it so they can increase the density and increase the value of the property. Therefore, to start a real estate business you can always start with a piece of land in a highly profitable area. Vacant lands in some areas are more expensive than other areas.
Residential real estate consists of housing for individuals, families, or groups of people. This is the most common type of estate and is the asset class that most people are familiar with. Within residential, there are single-family homes, apartments, condominiums, townhouses, and other types of living arrangements. The most common category, however, is single-family homes.
Commercial property refers to land and buildings that are used by businesses to carry out their operations. Examples include shopping malls, individual stores, office buildings, parking lots, medical centers, and hotels. This is the most profitable property investment type of all time; either for estate agents or investors. Although this type of real estate is profitable, the major disadvantage is the fact that the property may be empty for months.
Industrial real estate refers to land and buildings that are used by industrial businesses for activities such as factories, mechanical productions, research and development, construction, transportation, logistics, and warehousing. Some buildings that distribute goods are considered commercial real estate.
How to start a Real Estate Business?
Like all business, you need to strategically plan your business before proceeding further. Write a business plan to have a clear map of the proceedings. it is important to take time to evaluate and prioritize your plans for the future, both personally and financially. Furthermore, a well written business plan helps you attract investors and sponsors.
Register Your Business
Business registration is important, especially in the Real Estate sector. You would have to register your business with the corporate affairs commission to get a valid certification to operate as a business. Registering your company boost the trust of your customer in your company and increase the credibility of your profile. It provides legal backing for your business and gives you access to other business openings. To register you can visit the CAC website new.csc.gov.ng.
You can also register to some of the popular real estate professional institutions. This includes the Association of Estate Agents in Nigeria (AEAN), Real Estate Developers Association of Nigeria (REDAN) and Nigerian Institution of Estate Surveyors and Valuers (NIESV).
Build Your Brand
Branding is essential to business credibility. It is all about creating a perception about your business in the minds of people. Advancements in technology and the power of the internet have leveled the playing field for most, so the need for a creative & effective branding strategy is more important than ever if you want to stand out from the crowd. From building trust with potential clients to helping you attract more leads, good branding will go a long way in the success of your business. That being said, there are several ways to go about creating a brand for your business.
Above all else, buyers value brands they have confidence in, and that means delivering integrity, knowledge and strong communication.
Real estate business requires huge investment and capital, hence, you need to source for fund if you are not financially buoyant. 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.
Have An Online Present
While businesses of all shapes and sizes can benefit from a smart social presence, the importance of social media for real estate cannot be overemphasized. Buyers are now utilizing apps, online services, and search options to help them find their new home.
The real estate industry, and more specifically real estate development, is fast-paced, competitive, and risky; it is absolutely necessary that property developers and real estate development companies keep up with how new buyers are utilizing the technology available for property research. With an increasing number of digital platforms available and an increasing number of users, it is imperative that real estate developers develop and execute a full digital marketing campaign to establish an online presence.