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If you’re seeking to maximize the ROI on your real estate investments in Nigeria, you’ll want to know how to pick out winning deals from the mass of what’s available. In this article, we’ll run through a few things to look out for when prospecting for such opportunities. Here they are:
High or Growing Demand
Demand for property isn’t even across the country. Some states, cities or districts are magnets for real estate investors. Others barely show up on the property market’s radar. Growing demand almost always drives up value, so the rental fees and purchase prices of houses, office blocks and shops in areas with a high demand for them will climb. If you’re an early investor in such property, you’ll see the value of your investment appreciate significantly after a while.Sign up for the Connect Nigeria daily newsletter
Proximity to Already Developed Urban Centers
As cities expand, the value of land on their outskirts will increase. This is because of a surge in the demand for living and working spaces from people who want to take advantage of relatively inexpensive property in such locations. People who are smart enough to acquire real estate in such places early on will smile at the bank years later when they decide to cash in on their investments.Closeness to Major Development Projects
Real estate assets near major development projects tend to be worth more than those further off. Investors who purchase or build on land in the vicinity of those projects do so in preparation for an influx of residents and businesses. Projects that typically attract this movement include airports, sea ports, main roads, and tertiary institutions.Presence of Public Infrastructure
Districts with decent public infrastructure have a greater potential to draw in residents and businesses than those that don’t. So, their valuations tend to be higher and typically rise quicker. The sort of infrastructure we’re referring to are roads, bridges, telecoms, and water supply, among others. If these are in place, your real estate investment should prove profitable.Register to attend the CN Business Mixer
Final Words
There is no shortage of real estate investment opportunities in Nigeria. You will find them all over the country, within and close to towns and cities with varying prospects. Armed with the tips we’ve talked about here, you should be able to determine the viability and ROI potential of the real estate investments you’re weighing.Got a suggestion? Contact us: editor@connectnigeria.com