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Real estate is usually termed as residual income for investors and so, a property owner gets to smile to the bank when he/she gets returns on investments either from a sale or rental opportunity.
In Nigeria, the real estate industry has evolved into several strata of society. There are now mortgaging schemes, cooperative housing schemes, PropTech, facility management, Real Estate Investment Trusts. REITs are a form of collective investment scheme regulated by the Securities and Exchange Commission (SEC), which pools capital from investors and uses the same in the acquisition of income-generating real estate, mortgage loans, or a combination of both among other opportunities.
The government of Nigeria has a system in place called Land Use Charge and Tenement rates as all lands are originally owned by the government and so the lands are only on lease to buyers for a period of 99 years and the government can repossess it regardless of owning legal documents such as a deed of assignment or C of O showing ownership.
There is usually still disputes to be resolved in land matters as families claim ownership of certain lands as their ancestors were the early settlers of the said lands as aspiring owners would have to pay through their nose to acquire such lands and some families request some form of compensation at different stages of construction of the property. The Nigerian government is regulating the activities of the real estate through proper laws in place to check for discrepancies in the homeownership process.
Though, there is now an increase in real estate organizations acquiring properties for resale making homeownership for new owners seamless reducing the fears of new owners of families ‘'land grabbers’’.
Facility management is another new sector of real estate business thriving in Nigeria as some property owners like banks, hotels, companies and some residential property owners don’t have the time and skills required to manage their properties effectively so a facility manager’s expertise is accessed for proper maintenance of their outfits. From securing skilled and trustworthy workers to ensuring the safety of a properties’ environment is done properly by facility management personnel.
It is noteworthy to claim that the real estate sector in Nigeria is evolving with the variation in tastes of homeowners for quality delivery of service. Technology has also made it possible to book places of abode online either for short stays or for outright purchases which were not feasible in the past.