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  In recent times, there’s been a proliferation of online investment platforms in Nigeria. These mobile applications and websites have given regular Nigerians access to numerous investment opportunities, many of which were once the preserve of the wealthy.
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While we’ve seen this trend develop in segments like agriculture, stockbroking and debt instruments, not a lot of action has taken place with respect to real estate. That is, until now. In the past couple of years, digital platforms offering real estate investment opportunities have begun to surface. It’s still early days for this niche, but the signs are promising. More Nigerians are flocking to these apps and sites and leveraging them to get a piece of the profits from the lucrative real estate industry. This article examines the top three real estate investment platforms in Nigeria at the moment and provides you with some useful information about them.

Coreum RE

Coreum is a real estate company based in Lagos. Its team says they’re bent on making real estate affordable for “everyone, regardless of income level.” They are lowering the barrier of entry into the industry by pooling funds from investors and using this to acquire high-quality real estate assets. The company researches and selects choice housing and commercial units aggregate funds from users on its platform and purchases those properties with the pooled funds. Each property is divided into 100 equal slots; each of these slots cost 1% of the property price. Investors can invest by securing as many slots as they can afford. Coreum was founded in 2019 by Funsho Awoniyi. All of its assets are held in trust by FBN Quest Trustees (regulated by the Securities and Exchange Commission), which protects investor’s interests.
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Wealth.ng

Wealth.ng provides fractional ownership of real estate properties to Nigerians who want to hold real estate assets but don’t have the millions required to do so. It garners funds contributed by users of its digital platform and purchases a variety of assets. Investors earn from this arrangement via rent paid by property occupants and capital appreciation. The range of real estate assets that Wealth.ng is either involved with or planning to secure include student housing, shopping centres, warehouses, offices, and cinemas. Each property held by Wealth is taken care of by professional managers. This company says its co-investors can gain returns of up to 20% on their investments. However, precise interest payments may differ across individual property units. Wealth.ng was founded in 2019 by Sankore Investment, a wealth management firm that provides fund management, brokerage, advisory and other investment services. Besides its involvement in real estate, Wealth.ng also offers investment opportunities in agriculture, stocks, and fixed-income vehicles.

Risevest

Risevest enables Nigerians to invest in dollar-denominated real estate, stocks, and fixed-income vehicles. Its real estate holdings are located in the United States; people who invest with it could become co-owners of houses in that country. This company takes a well-defined approach to its real estate investments. First, it identifies and acquires high demand properties in the US that are currently priced below market value. The purchase is done using funds pooled from users of its mobile app. Then it rents out or sells the houses, and makes money for its investors via rent payments and capital appreciation. Properties held by Rise are insured against damage and loss of rental income. Historically its real estate assets have made an annual ROI of about 15%. However, returns may differ from year to year. Risevest was founded in 2019 by Eke Urum. It has partnered with ARM Trustees (regulated by the SEC), which helps to monitor how investors’ funds are used.

Final Words

Barring any significant change in Nigeria’s real estate and tech sectors, we should see more real estate investment apps and websites appearing in the next few years. They will open up the space for greater participation by people who had hitherto not been able to invest in real estate, and enable more Nigerians to build wealth. Featured Image Source: CNBC
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This article was first published on 3rd November 2021

ikenna-nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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