The fact is that building in a flood zone can further increase the risk of flooding and that is because a building activity – the replacement of the soil with hard concrete blocks – interferes with the natural passage of floodwaters, potentially diverting them to the buildings. Developing in flood-prone areas requires extra attention to detail. The developer also has to account for the potential risks, impact on the soil, and other factors. Houses built on flood plains are high-risk projects, and for investors considering building there, it is ideal to carry out a thorough feasibility study before building.
In the search for your dream property, either a piece of land or a home, there are major elements that form the basis of what a choice property is. First is the location of the property; location plays a powerful role in property acquisition as it serves several purposes. It ensures the buyer’s security and access to opportunities. It is also a determining factor for the level of return on investment for the buyer.
Aside from the location of the property, the prospects of the area should also be considered. Is the area a developing area? How is the road network? Does it serve the purposes you need it for? If you’re buying property for residential purposes, ensure the target location is secure, family-friendly, and safe.
There are several cases of building collapse that have been recorded in Nigeria in recent years, sad incidents that are mostly due to the negligence of the property owners as well as the ineptitude of the building contractors. There are regulatory measures that should be adhered to in all seasons to prevent further incidents such as strict adherence to quality building materials, employing skilled manpower in building contracts, and also proper maintenance culture. Regardless of how well a building is structured, it needs to be maintained as well. Therefore, corrective and preventive maintenance measures should be exercised regularly on buildings, especially high-rise buildings.
The impact of the foreign exchange rate on the real estate business is evident in the prices of construction materials, and like every other business, an increase in production cost ultimately affects the prices of real estate products. On the flip side, real estate products that are considered expensive within our country’s borders are appreciated by international buyers and investors.
Fraudsters and scammers are constantly on the prowl seeking clueless people to prey on. The key to avoiding their cunning, crafty tactics of real estate schemes is to verify their claims. Intending homeowners should not make a deposit until they have made security checks on the company, verified the authenticity of the product being marketed, as well as involved the expertise of a legal professional and a trusted real estate estate in the legal proceedings.
In the multitude of counsel, there is safety. So, before putting your money in a residential property, either a piece of land or a building, ensure you do the necessary checks and also inspect the property personally so you don’t buy ‘audio land’, or have people run away with your money.
With the incessant rise in the cost of living in Nigeria, the average person living on an average monthly income of N70,000, according to the statistics, is more worried about getting food on the table and clothes on their back than investing. That is not due to the lack of desire to own property but as a result of the inflated prices of goods and commodities.
The narrative is different with people in the middle class, regardless of the inflation, they can access loans to invest in profitable real estate investment. Considering that the target audience of most real estate companies is the middle class and upper class, regardless of the high cost of living, there is still a steady demand for property because they understand that real estate investment is the only investment that is low-risk and keeps appreciating with time.
The growth of the real estate industry, particularly in terms of consumer demand for properties, land, or houses, is driven by several factors ranging from urbanisation to economic growth, evolving preferences among the population, population growth, infrastructure development, as well as foreign investment.
Currently, in the real estate market in Nigeria, particularly in Lagos, we are witnessing a significant surge in demand for land and housing units, and that is thanks to the infrastructural developments by the government as well as industrialisation in areas like Epe, Ibeju-Lekki. These developments are indicators of economic growth and a fertile market. Therefore smart investors are heavily investing right now to enjoy attractive returns in years to come.
The real estate market in Nigeria is saturated with a wide variety of real estate products ranging from land properties, rentals, shortlets, and others.
Land property, which is very common in the real estate property market, is a vacant and undeveloped property that can be developed to serve residential, or commercial purposes. Residential properties are also on a constant high in the market, with luxurious homes being put on sale, as well as short lets. There is also the place of commercial properties in the real estate market, buildings specially built to serve commercial purposes like hotels and malls.
In real estate, location is king. The major determining factor that sets apart a piece of property in the village from one in the city is location. Having a plot in Lagos is worth way more than inherited plots of land in a village or any other rural area.
The perceived value of a piece of real estate is determined by the area where it is situated and mostly by the level of development, infrastructure, social amenities, industrialisation, and commercialisation happening in the area. Take for instance, the Epe and the Ibeju-Lekki areas are considered to be the new oil boom for investors as a result of the ground-breaking developments they are currently experiencing. Location is a factor that affects property value in Nigeria because it is the level of growth happening in the area that determines the worth of the properties in the area.
A smart investment decision is one that evaluates the potential return that can be acquired from a property in an estimated period. Some of the determining factors for weighing the return on investment a property can yield are factors such as location, property characteristics, market trends, and competition. These are the top factors that will tell the level of potential return to be expected on the capital investment on a property.
In Nigeria, the real estate sector is regulated by key agencies including the Federal Ministry of Housing and the Real Estate Developers Association of Nigeria. These agencies are instrumental in ensuring compliance with laws and regulations governing the sector.
Demolition of buildings in the country comes with differing opinions regarding the act itself, and little or no attention is paid to those who have either illegally acquired the land built on or built on risky areas like flood plains. Getting the unlawfully erected buildings out of the way is the government’s way of enforcing law and order, rules are enforced so order is maintained and if people go against already set down rules, there is a price to pay.
Potential homeowners should desist from cutting corners while trying to buy land or build, and approach the right agency instead, which will prevent clashes with the government in the future.
That will be on government policies. Government policies are not so friendly for private investors to develop buildings that can stand the test of time. There is little or no government-private partnership, which is a major challenge affecting the FCT. Also, there is a lot of focus on the urban region in Abuja and the rural areas are being left to develop themselves, hence cannot have holistic development within that area. There should be a focus on the rural areas.
I will say yes because of his antecedent. However, the position he occupies now is different from that which he was in before, coupled with the fact that he is going to be working with a different set of people, the laws and policies, and even compliance to them no matter how limiting, because he is under the law.
Land ownership is regulated by Nigerian laws as it occupies an integral place in human society. Every country has a set of laws guiding property acquisition to regulate the process. However, despite the existing legal procedures in property acquisition, people still make errors while acquiring property.
In Nigeria, one of the most common legal pitfalls people make is buying land without conducting a proper and necessary search or investigation as to the genuineness of the land and its documents. There is also negligence in engaging the expertise of a legal practitioner in the legalities involved. Note that not all lawyers are property lawyers. Therefore, for individuals looking at verifying the authenticity of their property, ensure you engage the services of a property lawyer to avoid legal pitfalls.
Fund sourcing is one of the major questions most investors have to contend with, and considering the fact that we are in a volatile market there is the need to have access to funds at the right time to access highly profitable investment opportunities that don’t lie around for a long time. There are certain strategies investors looking to fund real estate projects can employ to achieve their investment goals. Funding avenues such as crowdfunding, partnerships, private investors, and capital access, are possibilities that can be explored.
