![]() However, the top-end range is dominated by well established players and developers should target middle-income workers in major cities, such Lagos, Abuja and the oil-hub Port Harcourt. Property in Lagos, a heaving metropolis of around 20 million people, can be among the most expensive in the world with two-bedroom flats costing more than $1 million in upmarket areas. “I see demand from the middle-class higher than ever before,” said Deolu Dara, Associate Vice President at Nigeria-based Avante Property Asset Management, which manages several multi-million dollar residential projects in Lagos.Ī successful real estate investment in Nigeria can earn an returns as high as 30-35 percent, while rental income yields in cities such as Lagos and Abuja can easily reach 10 percent, developers and estate agents say. Nigeria’s population of nearly 170 million is bigger than Russia’s and its economy is growing at 6 percent, a combination which is producing a new wave of property buyers from bankers and airline staff to mobile phone and fast food shop owners. “There are sizeable challenges to overcome but in many ways Nigeria represents the perfect storm for real estate investment huge population, rapid urbanization and a growing middle-class,” said Michael Chu’di Ejekam, Director of Nigerian Real Estate at Actis, a London-based private equity firm.Īctis has $5.2 billion under management, including two sub-Saharan Africa real estate equity funds totaling $434 million, which it says are attracting U.S. ![]() Navigating through opaque land laws, corruption, a lack of development expertise and financing, a dearth of mortgages and high building costs will take courage and influential local partners. This sort of deception epitomizes the tricky nature of Nigeria’s real estate business, but despite the risks, there are huge returns to be had in a market where around 16 million homes are needed just to meet current demand. When you get back, your house belongs to six people. ![]() Posing as estate agents, they show buyers around your house and sell as many copies of the deeds as possible. In the most elaborate version, robbers break into your house while you are away, change the locks, and then produce multiple copies of fake title deeds. The warning refers to a popular property scam. A warning sign is seen on the boundary wall of a house in the Ikoyi district in Nigeria's commercial capital Lagos August 20, 2013.
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