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  You want a piece of the action in Nigeria’s booming real estate market. But you don’t think you have enough to get involved. Add the recent inflationary trend that has depressed the value of the naira, so whatever you’ve saved up is even less able to secure anything in this space. Or so it seems.
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In reality, there’s a good chance that your ‘small change’ could still do you some good in real estate in today’s market. Even if your cash holdings equal not more than ₦300,000, there are a number of ways to actually invest them. Here, we’ll look at the options you have if you’re going to stake limited funds in real estate right now.

Purchase Inexpensive Land

Believe it or not, you can purchase land in certain areas for just a couple hundred thousand Naira in this day and age. We aren’t just talking plots located in some extremely remote place. You will find these incredible deals on the outskirts of some of Nigeria’s fastest-growing cities. They aren’t typically close to the city centre, but they’re in such a location that it’s easy to imagine them developed in a decade or so. If you’re one for long-term investment and you’d like to put your small-time funds to work, you should consider this option.

Join a Real Estate Cooperative

Some investment cooperatives are involved in the purchase of land, development of property, and sale of living and working spaces for profit. They also own housing, office, and store units which they let out for rental income. These investments are funded by member contributions, and each invested member gets a share of whatever accrues from the property they sell or rent out. You can join one of these investment cooperatives, start out with ₦300,000, and grow your contributions (and returns) as you earn more.
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Co-Invest Alongside Multiple Investors

Not to be confused with a real estate cooperative, this option basically means you team up with other individuals. You all pool funds together and invest that in real estate. This approach lacks the structure and binding rules of the average cooperative but gives each participant freedoms that the former won’t. But like the cooperative model, you are likely to share profits with your co-investors at a rate equal to the proportion of the investment you contributed.

Buy Shares in a Real Estate Company

Another way to utilize your limited savings is to purchase shares in a real estate company. There are a number of these companies listed on the Nigerian Exchange (NGX). Look out for REITs (Real Estate Investment Trusts), which are companies that own or finance income-generating real estate. Examples are UPDC, Union Homes REIT, SFS REIT, and Smart Products Nigeria. You can buy a stake in some of these businesses, and sell for a profit when their price appreciates. Or you may hold them for the long term and periodically reap dividends.

Use Real Estate Crowdfunding Platforms

Thanks to the digital revolution, investing in real estate has become easier than ever. In the past few years, a number of digital platforms have emerged, offering low-cost investments in real estate for regular people. Some of them give you the opportunity to take a share of income-generating property in Nigeria. One of them (Coreum) accepts investments starting at ₦50,000. Risevest, on the other hand, provides users with a chance to invest in the United States property market with as little as $10.
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Final Words

As we’ve just shown, you don’t have to be a wealthy person to land a share of Nigeria’s impressively profitable real estate industry. There are entry options for you, even if you have limited funds. In fact, you can access some of the items we’ve suggested right now. It’s all up to you. Featured Image Source: The Guardian NG
Got a suggestion? Contact us: editor@connectnigeria.com
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This article was first published on 11th July 2023

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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