How to Start Real Estate Business in Nigeria & Get Clients

Did you know that the Nigerian real estate market is projected to reach a market size of $13.65 billion by 2025? 

We are sure you know that. That must be the reason why you need an expert guide on how to start a real estate business in Nigeria.

Good thing! You are in the right place. 

Starting a real estate business in Nigeria is no doubt lucrative, given the increasing demand for housing and commercial properties. 

According to research,  Nigeria’s population is projected to reach 440 million by 2050, which will likely create a huge demand for housing and commercial spaces.

Moreover, the current housing deficit in Nigeria is estimated at over 20 million units, which provides an extended opportunity for real estate developers and investors.

In addition, the real estate industry tends to create employment opportunities in construction, property management, and other related fields.

Furthermore, not everyone knows that Nigeria’s real estate market today is considered largely untapped, which provides opportunities for innovative and creative entrepreneurs to make a change.

So, if you think about it now, starting a real estate business in Nigeria has immense potential for profitability and growth. 

With the right strategy, investment, and expertise, you can tap into the opportunities available in the real sector and build successful and sustainable businesses.

Why Real Estate Business?

Property values in Nigeria appreciate rapidly due to urbanization.

Hence starting a real estate business can provide considerable returns on investment as property values increase over time.

Aside from the fact that the real estate industry provides employers of labour, from construction workers to property managers, it also provides a continuous stream of rental income because of its growing demand which can be a lucrative source of passive income.

In addition to that, the Nigerian government has put in place policies to encourage investment in real estate, such as the Federal Government’s National Housing Policy and the Lagos State Government’s Lagos Housing Policy.

With this, you can easily access starting capital for your real estate business in Nigeria as well as tax and incentives deductions. 

Understand the Real Estate Market in Nigeria

The Nigerian real estate market is portrayed by a high demand for residential and commercial properties, driven by population growth, urbanization, and economic development. 

To succeed in this market, you must understand its current state and potential opportunities.

One of the unending opportunities available in the Nigerian real estate market is the constant demand for affordable housing. 

Everyone needs housing. Not just housing, affordable and comfortable ones. 

With a population of over 200 million people, Nigeria has a significant housing shortage, with an estimated shortage of 17 million housing units. 

With this, a substantial opportunity has been presented for real estate businesses to provide affordable housing solutions for low and middle-income earners.

However, the market also presents several challenges, such as inadequate infrastructure, high construction costs, and regulatory bottlenecks.

For instance, the lack of adequate infrastructure, such as roads, water, and electricity, can make it challenging to develop and sell properties in certain areas. 

More so, high construction costs, caused by the high cost of building materials and labour, can also impact how much profit you can make from the business. 

To successfully run these businesses and overcome these challenges, you need to identify your target market and their specific needs. 

You don’t have to cater to all the housing needs. Just choose a specific audience and cater to them. 

For instance, you could focus on providing affordable housing for middle-income earners or luxury properties for high-net-worth individuals.

You could also focus on providing housing opportunities for salary earners with flexible payment options. 

It depends on what drives you and your business goal. 

How to Start a Real Estate Business in Nigeria

Just like any other business, there are procedures and steps to take before you start. That is if you want to start right. 

So many people got into the business without the right guidance, and then they ended up saying “It’s easier said than done” 

If you don’t want to be in this category of people who think they could navigate on their own without any help, we have written this specifically because of you. 

So, what should you do before you start a real estate business in Nigeria? 

1. Legal and Regulatory Requirements

After understanding what the market is like and you have chosen the kind of audience you want to cater to, the next thing is to ensure you are doing it the legal way.

Starting a real estate business in Nigeria needs you to comply with legal and regulatory requirements. 

The first step is to register your business with the Corporate Affairs Commission (CAC). 

To do this, you need to choose a business name that is short, meaningful, and easy to remember, register the business, and get a certificate of incorporation.

Next, you need to get the necessary licenses and permits to operate legally. 

These may include a real estate agent license, a property developer license, or a property manager license. 

The requirements for these licenses vary depending on the nature of your business and the state where you operate.

Also, you need to understand zoning laws, property laws, and other regulatory requirements. 

This is because some areas may have restrictions on the type or size of properties that can be built.

2. Creating a Business Plan

A reliable business plan is the backbone of any successful real estate business. 

To outline strategic goals, identify target markets, and develop a roadmap that will guide you to scale through the competitive industry and achieve long-term sustainability, you need to create a business plan. 

You can start by choosing the right business model for your real estate business. 

Such as brokerage (buying and selling properties), property management (managing properties on behalf of owners), and property development (building and selling new properties).

Then carry out thorough market research needed for your business strategy. 

This should include an analysis of the competition, market trends, and customer preferences. 

More so, your business plan should also include financial projections and a budget for your operations.

3. Building Your Team

You know the saying “Two good heads are better than one” 

Yes, you need to build a team of competent people that will help push your business forward. 

When you build a competent team needed for the success of your real estate business, you don’t have to be the only one focusing on the operational, marketing, and strategic roles. 

You can start by Identifying necessary roles needed to be occupied for the success of your business. 

It could be agents, property managers, administrative staff, and others. 

However, when hiring team members, look for people with relevant skills, experience, and a good track record.

You should consider training and development sessions for your team members. 

Regular training sessions can help your team stay up-to-date with industry best practices.

4. Securing Financing

One of the most important aspects of how to start a real estate business in Nigeria is getting enough funds to finance your business. 

If you don’t have business capital yet, you should try to explore various funding sources, such as loans, investors, and partnerships. 

Also, you should consider maintaining good financial management practices to adequately manage finances and maintain cash flow.

Look out for profitable investment opportunities which may involve buying undervalued properties, developing properties in high-demand areas, or investing in upcoming areas that pose the possibility of being the next real estate money magnet. 

5. Marketing and Branding

To differentiate yourself from your competitors, you need to create a strong brand out of your real estate business. 

Creating a strong brand and carrying out effective marketing strategies can help you stand out in the competitive real estate market. 

You need to come up with a unique brand identity that epitomizes your values and appeals to your target audience.

Craft your unique, authentic, and memorable brand story to reflect your values and mission.

Also, work on your brand identity including your logo, colour scheme, and consistent design to help you create a cohesive and recognizable brand.

You can also try to use some of the best marketing strategies including digital marketing, networking, and referrals to push your brand forward. 

You may also need a professional website and active social media presence to help you reach a wider audience, generate leads, and ultimately drive sales. 

6. Setting Up Operations

All those being done, you need to plan and set up your mode of operation. 

However, setting up your operations requires careful planning. 

First thing first, choose the right location for your office, taking into account factors such as accessibility, visibility, and proximity to your target market.

Also, get tools and software for real estate management, such as property management software, customer relationship management (CRM) software, and marketing automation tools to make work easier and reduce your operational costs. 

In addition, you need to establish standard operating procedures (SOPs) to ensure smooth and efficient operations. 

This may include standard operating procedures for property acquisition, sales, property management, and customer service.

7. Growing Your Business

Now that we are here, let’s talk about how to grow your business. 

It’s not enough to learn how to start a real estate business in Nigeria, what should you do to maintain and grow the business? 

Let’s discuss that. 

Firstly, you need to build and maintain strong client relationships to grow your real estate business. 

You should also consider networking and joining industry associations to help you expand your reach and build your reputation.

To grow your business, you should also consider strategies that involve expanding your portfolio, diversifying your services, and investing in new markets.

What Next?

Starting a real estate business in Nigeria involves several steps, from understanding the market to setting up operations and growing your business. 

Firstly, you need to understand the real estate market and what people are interested in investing their money in. 

Then, get the legal documents required for the smooth running of your business. 

You should not forget that you need to craft a detailed business plan that will guide business operations as well as hire competent team members. 

With a good business plan, you should be able to secure your business funds. 

When you do, work on your marketing and branding to make you stand out among your competitors. 

That way, it will be easier for you to set up your operational procedures and grow your real estate business easily. 

If you follow this guide and continually learn and adapt, you can build a successful real estate business that meets the needs of your target market and contributes to the growth of Nigeria’s real estate sector.

Fortunately, you don’t have to go through the process on your own. UGC Deck as a Nigeria marketing company in partnership with consultants in business name registration, recruitment and legal, have the right package that can get you started from zero to a hundred.

Starting from as low as #200,000. We are going to have your business registered, create a social media marketing strategy for your business or provide a content plan for you, help you in recruiting the right team members for you and guiding in keeping your business structured. 

And our partners can also help keep your business numbers(Accounting). 

Note: Our packages are flexible. Message our team on WhatsApp at +2348063469469 (Or call) or send us an email at hey@ugcdeck.co. 

Just in case, you might find these resources helpful. 

• Corporate Affairs Commission (CAC)
• Nigerian Real Estate Hub
• Real Estate Developers Association of Nigeria (REDAN)]

You might also find these helpful

• How to write a real estate business proposal
• Real estate market outlook  
• Real estate business plan in Nigeria 
• Real estate business proposal
• Nigeria Real Estate Guide  

For deeper understanding, you can also consider reading books or taking courses on real estate business and investment.

Rofiah Adebakin

Rofiah is a marketing writer with over 2 years of experience creating content for Dozens of industries including tech, home services, education and professional services.