These days, building a house is not an easy job. It could be very complicated to some Nigerians who do not know exactly where and how to begin the construction. Fortunately, there are already places in Nigeria where the lands are already developed; you only have to modify it according to your preference. What can be very exciting is investing in building houses for leasing in Nigeria. So, if you are a Nigerian abroad who wants to venture on real estate, you MUST be aware of the trends that people are using in building houses.
THINGS TO CONSIDER WHEN INVESTING IN REAL ESTATE IN NIGERIA
The first thing that you have to reflect on is the area where you want to build your business. For instance, if you are building a shopping complex in a residential estate like Agbara Industrial Estate, no one will lease the place for you. You need to know the prevailing issue in a certain area.
You also have to look at the potential qualities of the area. Since you are investing on a business involving large sum of money, it is best to think about your potential market. If you are thinking of building a shopping mall, are there a lot of possible clients who would rent the stalls built for businesses? Or, is there enough population who would regularly visit your shopping complex? Is it accessible?
BEST PLACES TO BUILD SHOPPING COMPLEX IN NIGERIA
You can come and visit Ikeja, Oshodi, Abule, Egba, Maryland,Yaba, Ojuelegba. You can also go look in Surulere, Ikeja, Magodo, Alapere, Ilupejo and Ikoyi. There are apartments here that could easily be converted into office suites.
THE LATEST TREND IN BUILDING HOUSES FOR LEASING NIGERIA
People in Lagos, Nigeria rarely build residential buildings with two or three bedroom apartments. Neither will you still see anyone building the old fashioned “face to face” buildings. The latest trend in building houses in Nigeria is much cheaper than those that were built a few years back.
The most up-to-date type of apartments is fully furnished with amenities like water and electric. And, these apartments are mostly found in Ikorodu, Palmgroove, Isolo, and Mowe Ibafo and Ogijo (suburbs of Lagos but part of Ogun State). Built with just 2 rooms; one being the bedroom and the other as the living which is expected to be bigger than the bedroom, these houses are built specifically for singles or newly married couple.
There are also one room self- contained apartments intended for single people. It has its own bathroom and a small kitchen. These one room apartments are now getting popular in Nigeria as it is easier to clean and can be very cozy.
THE COST OF CONSTRUCTION
The cost of building houses for leasing largely depend on the type of construction you are willing to do. IF you are only renovating the property, all you have to do is get a contractor and alter the designs to your taste and specifications. BUT, if you are going to start from scratch, expect to spend a lot more. However, everything is worth the money spent as every inch of design and molding will be done according to your own expectations,
The rental rates will depend mainly on what type of apartment you have built. Amenities are also a great factor in determining how much it would be appropriate to have it rented. However, the location is mostly the chief concern of the lessee.
For areas like Alapere, Obanikoro and Anthony, you can give a 2-room apartment for N250, 000 per annum while 1-room apartment can go for as high as N150, 000 Naira per annum. The same type of apartments in other areas in Lagos and other suburbs can be around N150, 000 for the 2-room apartments per annum while 1-room fully furnished apartments can go for about N100, 000 per annum.
MONITORING YOUR HOUSE FROM ABROAD
Building houses for business purposes can be easier than monitoring the purpose. It can be entirely difficult to collect the rental fees when you are based overseas. Fortunately there are ways on how you can monitor and benefit from your business.
TWO WAYS TO MONITOR YOUR BUSINESS IN NIGERIA:
Hiring an estate agent – you can hire an estate agent who will do the job for you. These agents are experts when it comes to collecting and they will never let your lessee live in your house without payment. Aside from this, agents will see to it that the tenants use your properties appropriately. You as the lesser will have to make a letter of agreement with your estate agent on how much you would pay him for his services.
Entrusting your business to your friend or relatives- this can be a little tricky at times especially now that Nigerians abroad are reluctant to trust their relatives or friends back home. But, if you choose someone who is dependable; who can monitor and collect the rent from your tenants without deducting anything from the collected money without your approval, then everything would turn out just fine.
Knowing the latest trends in building houses in Nigeria is definitely a MUST for someone like you who wants so start on house construction and leasing.
Contact Person: Kunle Adedeji
Tel. no. 08023072963
Company: Kunle Adedeji & Co.
Address: Block A4, Suite 99.
Sura Shopping Complex, Simpson Street, Lagos Island, Lagos.