Nigeria is facing a very challenging business environment with the country’s economy under strain, depreciating by over 25 per cent in the past year, leading to investors look into other sectors to put their investments into.
According to analysts this might be one of the best times to look into the Nigerian real estate market.
“There has been an increase in interest because if you understand real estate, the best time to invest in real estate is during a downturn so this is actually a good time,” said Ruth Obih, CEO, 3Invest.
Adding that the market has not really been affected by new investors, they are likely to already be investors if they are investing in real estate.
“It gives investors an opportunity to invest in something they can actually touch and feel and we are giving opportunities to investors to invest in real estate abroad,” said Acho Azuike, Managing Director at Houston EB5.
Obih sees a lot of interest to invest in real estate but feels they don’t always understand what to do.
The Real Estate Investors Forum is a collection of real estate investors who want to get into real estate investing, grow their portfolio and create sustainable wealth.
Another reason to look to the sector is with DC Partners, a luxury real estate and development investment firm which offers investors a green card through investing in the United States through the EB5 Immigrant Investor Programme.
“The programme was started by the US government as a way to stimulate foreign investment in the United States, invest half a million dollars in real estate development projects, they get a return on their investment and they also get a green card for themselves and their families, “ said Azuike.
The exchange rate affecting the naira to the dollar right now has the company trying to find a balance to avoid deterring investors.
This is the fourth investment programme the company has hosted and each time there is more African investor interest.
To best invest in real estate, Obih says one of the most important points to keep in mind is understand the cash flow.
“If you understand cash flow you’ll do well in real estate.”
While Azuike believes it’s all about “location location location – if you have the right asset type in the right location, you can’t go wrong.