5 Real Estate Investment Strategies for Nigerians in Diaspora

Introduction:

Nigerians in diaspora are the largest investors in Nigerian real estate. According to a study conducted by Romax Properties, it was revealed that 70% of real estate investments in the country comes from Nigerians in diaspora, the remaining 30% is from Nigerians living in Nigeria. If you are looking to invest in Nigerian real estate as a Nigerian in diaspora, rest assured that you are not the only one. Nigerians living abroad are significantly pumping fresh capital into the Nigerian real estate sector. Looking at the current condition of the exchange rate, right now might be the best time to invest in Nigerian properties.
However, Nigerians in diaspora have expressed scepticism when it comes to Nigerian real estate investments. Your fears are valid because of widespread distrust, complexity and stress in various activities such as documentation, allocation and many more. In this blog post, we will break down five strategies you can adopt so that your real estate investments are seamless.

Strategy 1: Adopt the use of technology and remotely manage the process

Technology has significantly impacted various sectors and the Nigerian real estate industry is not an exception. The COVID 19 pandemic encouraged the widespread adoption of virtual home tours and this is still valid till now. As a Nigerian in the diaspora looking to invest in real estate, you can remotely manage the process through different time zones and different continents. All you need to do is request for virtual property tours. At Dek global, once you show interest in any of our properties, you will have the option of a virtual property tour. One of our realtors will be assigned to you and you can have a virtual tour of the properties via any medium you’d prefer. Asides from that, you can remotely manage the property by requesting that a family member or friend go on inspection on your behalf. This will help you verify the properties as well as the credibility of the real estate company.

Strategy 2: Diversify to Mitigate Risks

There are various real estate investment options readily available for you to take advantage of. You can invest in landed properties, you can buy homes, you can buy houses, you can invest in real estate stocks, basically, your options are vast. So, why put all your money in one thing?
As you already know, the Nigerian economic scene is volatile, as a wise investor, it becomes pertinent for you to explore various options and take into cognisance potential risks and challenges that may arise in real estate investments. Consider investing in various properties across various locations to effectively spread risks. With Dek Global, you can seamlessly achieve this, we currently have three different products in different locations. You can spread risks by investing in these properties as opposed to pulling all your income into one property. See the options we have below;

Strategy 3: Network and Build Local Partnerships

As a Nigerian in diaspora you have to be very intentional about your real estate journey and as such, it is important that you network and connect with both foreign and local investors. You can discuss with other real estate investors in the diaspora. You can meet up with them or have virtual calls for proper guidance and direction. You could also reach out to local investors via social media so that you are well informed about various locations, prospects for development and red flags in real estate investments. You can virtually join real estate conferences happening in Nigeria, connect with some panellists and speakers, get to know real estate developers, realtors and many more. This will allow you to have proper guidance, it will ensure you are getting the right properties from credible sources, it will also elevate your real estate knowledge. We always have virtual events for real estate investors like you. Kindly follow us on Instagram to stay updated on these events.

Strategy 4: Stay Informed 

In the words of Layi Wasabi ‘It is information that makes one fly, info l’eyan fin fo’. As a Nigerian in diaspora looking to fly across shores with your real estate investments, you need proper information so you don’t crash. You need to know about developments happening in various locations. For example Epe is one of the best places in Lagos to purchase land because of its amazing prospect for  the future. There is a proposed film city, the Dangote refinery, Lekki airport, free trade zone and many more. We have  two products in Epe, ‘Willowbrook’  and  ‘Orchard Ville’ guaranteeing you a peek into the future of Lagos. Staying informed on market trends, real estate locations, realtors, investors’ portfolio and general news in the country is one of the best strategies you can adopt as a real estate investor. Ensure you carry out your research and due diligence to have a prosperous future in real estate as a Nigerian real estate investor in the diaspora.

Strategy 5: Have a financial plan

Investments are all about finances. Before and during real estate investments, it is very important to put your finances in order. You can begin by developing a comprehensive financial plan for your real estate investments in Nigeria. Adopting strategies like budgeting, defining risk tolerance and setting clear goals can significantly affect your return on investments. As a Nigerian in diaspora, another thing you need to look out for is the exchange rate. Thus, it is advisable to purchase your properties in naira, then rent it out or sell in the currency of your country of residence. For example you can buy 500sqm of Orchard Ville for 2.5 million naira, it is advisable that if you build a rental property on it, you charge your residents in the currency of your country of residence, this could be dollars or euros. This will help you make the most of the investment. It is important to note this because the exchange rate keeps fluctuating and charging in naira might be detrimental to your return on investments  in the long run. Working with financial experts can be very beneficial in this regard so we recommend you prioritise this. 

Conclusion

As a Nigerian in diaspora, the best time to invest in Nigerian real estate was yesterday, the second best time is now. In this blog post, we  have broken down some strategies for you so that you can make the most out of these real estate investments. You can also begin your journey to building a comprehensive Nigerian real estate investment portfolio with us. Kindly send us an email or reach out to us via any of our social media pages. We are excited to go on this journey with you..