How Real Estate Investment Works In 2025
Real estate in Nigeria has undergone significant changes since the precolonial era, owing to several factors such as post-independence urbanization, colonial influences, and innovations. The Nigerian real estate industry has created several opportunities, reducing the rate of unemployment in the country, and most importantly, creating wealth.
Market Overview
Over the years, the real estate industry in Nigeria has witnessed steady growth in many regions. Individuals within and outside the country have shown interest in investing in the industry. With continuous innovations and infrastructures such as airports, factories and several modern construction sites, real estate investment in Nigeria is a sure way of creating wealth.
Lagos and Abuja, the country’s centres of economic growth, have also contributed to the rising popularity and importance of real estate investment. Hence, the demand for real estate in these areas is always on the rise. Commercial activities also contribute to the success of these areas, increasing the overall economy of the country.
For several reasons, government-led infrastructures increase the popularity of certain areas, such as Epe, Ibadan, and Lekki, increasing urbanization and the potential for good real estate investments.
Key Drivers
The search for greener pastures has driven most people from rural to urban areas of the country, leading to an increase in demand for residential and commercial spaces. This is one reason why real estate investment thrives in the country.
The housing needs have shifted, shaping market trends and subsequently investment strategies.
If you are asking, “Why is real estate a good investment?” One major reason is the continuous development and improvement of roads around Nigeria. Places such as Abuja and Lagos are the most sought after by investors and real estate agents due to this reason hence, they will make a good return.
Nigerians living in diaspora are tirelessly investing in real estate in the aforementioned places, increasing the value of these places as well as the real estate industry.
The Impact of Technology (PropTech) on Real Estate
Technology has now become a fundamental and necessary aspect of real estate operations. From making research on your intended real estate investment to acquiring the property and construction, technology has contributed greatly to the growth of the real estate market.
Analyzing market trends and relevant data with the help of technology has helped many investors make informed choices on what decision to make in real estate.
Increasing demand for homes with smart features has enabled realtors to fulfil the dream of many homes. Integrating the Internet of Things for data analysis and information on future design, comfort, and convenience can be promised.
Key Real Estate Investment Strategies in 2025
One of the best strategies that has existed for a while, and is still valid, in real estate, is diversification. Investing across various asset classes and geographical locations helps to reduce risk. How real estate make money is simple: don’t focus on one niche. Invest in residential, commercial, and industrial real estate markets.
Prioritizing buildings with features like solar panels and smart home technologies increases the potential for higher returns. Considering the tilt towards technology and convenience, smart home features promise comfort and convenience. This is how real estate make money.
Leveraging technology, you can identify areas with strong growth potential. These areas have a sure return on investment rate, due to factors such as infrastructure development, urbanization, and job opportunities. Specific regions within Abuja, Lagos, Ibadan and Osogbo are worth considering.
Real estate and development work hand in hand. Whenever there’s a new infrastructure or government-led project, best believe that is a worthy investment. Development makes an area the center of attention. For example, investing in properties close to a mall, cinema, or hall is how real estate make money. People will naturally crowd these places, and visibility is the key to real estate.
The Process of Buying, Selling, and Renting in 2025
No doubt, real estate agents have made buying and selling tricky. However, here is a guide for your next real estate investment.
Buying
When considering a property for the first time, request for a virtual tour round the property to be sure of what you want and also to save time.
You might be at risk of overpaying a real estate agent. To avoid that, make use of AI-powered tools to evaluate the property. You should also negotiate with the real estate agent to ensure affordability.
For first-time buyers, there is always a real estate agent assigned to guide you to see the value of the property and also assist you in making the right choice. This real estate agent is who you talk to for other financial options, such as installment.
If you wish to complete your transaction online, you can.
Selling
Real estate investment decision is always a dicey one. To sell in the real estate market, you must have built trust and a strong online presence. You need to have a foolproof marketing strategy as well.
Selling online is your best bet, so visual appearance is a must. You need to utilize professional photography and virtual tours to attract potential clients and increase your credibility.
The development of the area of a proposed investment affects prices. You should be informed about the pricing strategy to avoid being underpriced. Leverage data analytics and media on the area’s real estate and development plans in the area.
To have an edge in the market, including smart home features, is a key selling point.
Renting
Different online platforms can be used to advertise properties for sale. As a tenant, there is a range of properties to screen and choose from.
When choosing a property to rent, you should check the property’s potential for smart home technologies. For convenience and enhancement of the tenant experience, properties should include technologies such as solar panels.
For a flexible lifestyle, check for properties that cater to immediate and luxurious needs.
Challenges and Opportunities for Real Estate Professionals
Challenges
- Real estate agents need to embrace new technologies to make their job efficient and have an edge in the competitive market.
- Understanding the importance of data analytics and utilizing it for real estate market insights and client management.
- Convincing uninformed clients of the benefits of smart home features to their day-to-day activities, especially in rural areas.
- Construction costs due to inflation and economic challenges have affected the cost of properties.
- Staying informed about the rules and regulations guiding the real estate market is important.
Opportunities
Utilizing social media to build a strong online presence is a strong marketing strategy to reach a wider audience. Educating your audience about the dos and don’ts of the real estate market makes you a force to be reckoned with and the go-to person for real estate consultations. Providing consultations on investment strategies is another way real estate agents generate income.
As a real estate agent, recognizing emerging markets and different types of properties and the season best to sell and invest is a skill you need to have to be able to stand out in the market. Being able to work across all real estate markets, such as residential, commercial and industrial real estate, is great, but knowing when to diversify and invest is a specialization.
Instead of hiring human labour for certain operations in the company, leveraging technology for activities such as analytics and accounting will help manage costs and streamline operations.
Conclusion
Real estate is a profitable investment that has been around since precolonial times and is still growing. If you are looking for a way to build wealth, real estate investment is a nice option. Development in key areas, leading to an increase in population and a growth in economic activities in the area, is one key driver to a profitable real estate investment. So, when next you are trying to invest in a property, look out for potential development in the area.
FAQ
Q: How does real estate make money?
A: Real estate makes money from buying properties at a certain rate and reselling them at a higher rate. You could also rent properties out for an annual or monthly income.
Q: Which areas are best for a beginner?
A: Government-led projects increase the population of certain areas, thereby making them the best to invest in, even for beginners. Areas such as Abuja, Ibadan, Osogbo and Lagos top the list.
Q: What should a tenant look out for when renting a property?
A: When renting a property, you should take into consideration your lifestyle. For remote workers, you should look out for properties that include smart home features and the flexibility of it
