Real estate in Nigeria is a multi-billion naira business in Nigeria. In fact, it is the highest-paid industry in Nigeria today and there are many ways you can make money from it. Recently, I wrote an article on how to start a real estate business in Nigeria. But in that article, I did not mention different ways you can make money from real estate in Nigeria.
In the article, I just mentioned the step-by-step guide on how to start the business. But in this article, I am going to be explaining many ways that you can make money from real estate in Nigeria whether as a student, married man or woman, or a stay-at-home mum. So I will call this article part two of the earlier article I wrote on how to start a real estate business in Nigeria. If you are really interested.
How to Make Money from Real Estate in Nigeria
Here are the ten top best ways you can make money from real estate in Nigeria.
1. Buy and Sell Lands
One of the surest ways you can make money (multi-million naira) from real estate in Nigeria is to buy and sell land. You do not need to start by buying and selling lands costing millions of Naira. You can start small by buying cheap lands in low-development areas to sell later. To start this kind of real estate business in Nigeria you need a starting capital.
With a capital of ₦300,000 – ₦500,000 you can start buying and selling lands in any of the states in Nigeria. For example, if you buy land for ₦300,000 you can wait till it appreciates for some time and then sell it when it is worth ₦1,000,000. After that, you can buy another piece of land worth ₦800,000 and sell the land for ₦1.5m when it appreciates.
The best thing about buying and selling lands to make money from real estate is that the more money you use to buy the lands the more profits you will make. Buying and selling lands in Nigeria will not make you money daily but per deal, it can make you millions as time goes by. Check out this post for the best places to buy cheap land in Lagos.
2. Buy and Sell Houses
This is another way you can make money from real estate in Nigeria if you do not want to buy and sell lands. However, this kind of real estate demands very high capital. This capital can run into millions of Naira. To start making money from real estate buying and selling houses you can start to buy buying houses in the low-brow areas to sell and as time goes by you can start buying luxury houses to sell.
To be able to make huge money from buying and selling houses in Nigeria you will need to refurbish the houses after buying them to increase their cost value. For example, you can buy a bungalow renovate it by painting it and putting paving stones in its compound, and then sell it at a higher price.
3. Lease your Lands or Houses
If you already own land or lands in Nigeria and you do not have the money yet to develop the lands you can lease your lands to people that want to use it as a farm or people that want to use it as a mechanic shop. You can lease your Land for 5 years, 10 years, 20 years, or even 30 years. It depends on you and how soon you might change your mind about the lease agreement.
Depending on the duration of the lease and where your land is located in Nigeria you can make up to ₦20m – #50m in the leasing of one land. Land leasing is one of the most common ways you can make money from real estate in Nigeria. However, many landowners are scared of this for unknown reasons.
4. Put your Apartments on Rent
Do you own a house, boy’s squatters, or apartment? You can make money by placing these houses or apartments on rent. You can put these apartments on yearly rent or monthly rent or air bnb. The decision is left to you. However, I will strongly advise you to go for yearly rent instead of monthly because it makes how much you will be paid bulky. If you are putting your apartment on rent there are a few things you need to do.
The first is to make sure the house or apartment is in good condition and it is beautiful. This is to make sure the house is rented at a higher market value. Secondly, you need to make sure you renovate the apartment often. From what I have seen in Lagos many landlords only care about rent and they leave their houses in bad conditions.
This is not good. Every landlord should treat their house as a business. If they do they will always set aside money to keep maintaining the house and put it in its normal state.
5. Become a Real Estate Investor
Another way you can make money from the real estate business in Nigeria is to become a real estate investor. If you are just starting in the real estate business this option is perfect for you. To make money as a real estate investor in Nigeria all you need is money to invest in a real estate company. This real estate company will then use your money and other co-investors money to buy landed properties.
When these landed properties are later sold with the appreciation you will be paid the money you have invested into the company and the return on investment (ROI) your money has made. I have participated in this kind of real estate business before and it was absolutely wonderful. Just make sure you take your time when you want to go into it so that you will not be swindled of your money or disappointed.
6. Become an Estate Agent
If you want to be making money from real estate in Nigeria regularly and you do not own houses or have money to invest you can become a real estate agent. A real estate agent is a person who helps people looking for apartments to get apartments. He or she is paid to look for available apartments in an area on a budget.
When this apartment is finally chosen and house rent is paid the estate agent will get an agency fee which is about 10% – 20% of the house rent. Depending on the kind of customers and the kind of apartment you get for your customers you can make millions as a real estate agent in Nigeria.
7. Become an Estate Developer
Another way to make money from real estate in Nigeria is to become a real estate developer. As a real estate developer, you can make money helping Nigerians to build their houses. To be an estate developer in Nigeria you do not need to be a civil engineer or have any qualifications. All you need is to learn how about buildings, how they are built, and how to become a real estate developer.
This handwork usually takes 2 – 3 years to learn but, when you are done you can start getting paid for building houses for people. How much you make as a real estate developer depends on the area you work in and the kind of customers you meet.
8. Buy and Sell Building Materials
If you like running a business and you consider it as a way of making a stable income for you and your family you should consider building materials business as a way of making money from the real estate in Nigeria. Due to the fact that the need for houses can never come to an end supply building materials will be unending. To start a building material business you need capital.
This capital can range from ₦500,000 – ₦800,000. Asides from the capital you also need the right connection. With the right connection, you can win a huge contract even on the first day of starting your business. Read our guide on how to start a building materials business in Nigeria. Other building materials businesses you can start are the pop cement business and the cement business.
9. Become a Building Manager
You can also make money from real estate in Nigeria by becoming a building caretaker or building manager. The job of a building caretaker is to manage buildings making sure they maintain their original state for a longer period. As a building manager, your job is to make sure that the buildings under your care maintain their original market value.
You will be paid to paint the building, repair plumbing faults, electrical faults, and more. If you are managing so many buildings as a building caretaker you can make good money from the real estate.
10. Start a Real Estate Company
Lastly, you can make money from real in Nigeria by starting your own real company. Yes, all you need to do is to register your real estate company under the corporate affairs commission (CAC) describing all you want to do as a real estate company and start the business. If you do not have huge capital to be buying and selling properties you can start your real estate business by helping house and landowners to get customers that will buy their landed properties.
And as time goes by when you have your starting capital you can now start acquiring land to build properties to sell.
These are the top ten ways you can make money from real estate in Nigeria. If you choose one of these ways and you are able to master the sales technique you should be able to make millions from the real estate in Nigeria within a short period. However, if you know more ways you can make money from the real estate business in Nigeria drop your points in the comments below.