Nigeria, referred to as the “Giant of Africa”, is the most populous nation in Africa with a population of over 160 million people (of which about 50% are urban dwellers) and a land mass of 923,768 square kilometers. English is the official language and Naira is the national currency.
With its diverse languages, landscapes, resources, rich cultures and traditions, come various types of houses. Housing types range from bungalows, flats, town houses, semi-detached duplexes to detached duplexes. Houses are built in developments that range from open developments to gated communities; mini-estates to well established serviced estates.
Opportunities for foreign Investors
With a housing deficit of over 17 million housing units, a high number of Nigerians are living in substandard accommodations. This large rental market without enough well built and affordable properties to fill the gap offers many viable investment opportunities. This in turn with the profitability of housing is drawing many developers into a construction boom.
Rents are freely determined by the property owners and are paid well in advance, say one to two years upfront which makes property investments really interesting for the investors.
Lagos State and Abuja have become the favorite destination in Nigeria for most foreign investors especially the Lebanese who play in the high end markets and the Chinese in the middle to low income markets. Investment/Fund Managers have also taken a strong interest in real estate investments in these areas.
What are the investors buying?
Investors and foreign nationals are mostly attracted to the fully serviced luxury residential flats with water views, furnished flats in serviced estates used for short-lets and well built commercial developments in the business districts. The most sought after locations are in the cities of Lagos and Abuja.
Foreign Buyer’s Legal/Tax Implications
Be sure to consult a CENTURY 21® Broker for professional real estate advice. You will also need a lawyer to carry out a legal search on the title before purchase and perfection/registration of the title documents after purchase; and a financial advisor or tax consultant for financial and tax advice.