“Property is desirable; it is a positive good in the world. Let not him who is houseless put down the house of another but let him work diligently and build one for himself, thus by example assuring that his own will be safe from violence when built” – Abraham Lincoln
Investment in real estate is generally considered a lucrative and safe business. In addition to food and clothing that are fundamental to human existence, shelter is essential to life. Everyone needs a roof over their head. The shelter is a sine qua non. Property is important for residential and business purposes.
It is based on the need/demand for Property for the reasons stated above that investment in real estate has been on the rise. With high rise buildings, shopping malls, hotels springing up in several urban areas and cities, where there is a competitive demand for them.
Investment in real estate does not necessarily require a huge fund to start. With a moderate amount either saved or borrowed from a bank, an investor can make a foray into the property business. And gradually accumulate funds from his returns that can enable him to launch into bigger deals. Property developers are those who invest their money to build Property for residential or business purposes, on land that belongs to another. At the same time, they agree with the landowners to collect rent for a number of years before handing the Property back to the landowners.
A very significant attraction of investment in real estate is that property business does not suffer so much from inflationary shocks. Property appreciates more than any other investment. An investment in shares and stocks may suffer a setback when there is a lull in the economy. Still, the price of Property will never diminish, no matter the situation.
According to the Nigerian Bureau of Statistics, the real estate sector contributed a total of 5.58% to the country’s GDP in the first quarter of 2019. The second quarter was 6.44%, and a total of 6.21% was recorded for the third quarter.
With these figures, it shows that the real estate sector is yet to grow to the level of making a significant impact on the Nigerian economy. Nevertheless, there is a potential for growth if the increasing investment in that direction is sustained.