The Role of Real Estate in Wealth Creation - Yahaya Haruna, MD/Founder YH Homes & Properties
In an exclusive interview with Nigeria Housing Market, Mr Yahaya, an industry leader and MD/Founder of YH Homes & Properties answered a series of questions on how real estate can be a tool for wealth creation in Nigeria. He highlighted the current state of real estate in Nigeria, future outlook and investment strategies.
What makes real estate a preferred investment option for building wealth in Nigeria compared to other asset classes?
Real estate has an unmatched ability to turn dreams into reality. It’s not just about owning land or property. it’s about securing a future, building legacies, and having security or peace of mind that few other investments can offer. Unlike volatile asset classes like stocks or cryptocurrencies, real estate provides a tangible asset that not only appreciates over time but also offers multiple avenues for income generation. In Nigeria, where the demand for housing and commercial spaces is increasing day by day, investing in real estate is like planting a seed that will one day become a tree, offering shade and fruit for generations to come. This stability, coupled with the emotional satisfaction of owning a piece of the earth, makes real estate the ultimate choice for wealth creation.
How has the real estate market in Nigeria evolved over the past decade in terms of investment opportunities?
The evolution of the Nigerian real estate market over the past decade is nothing short of inspiring. We've seen rapid urbanization, a growing middle class, and an increasing demand for both residential and commercial properties. What used to be a market dominated by traditional practices has transformed into a dynamic sector driven by innovation and technology. The rise of smart cities, eco-friendly developments, and real estate crowdfunding platforms have opened up opportunities for a wider range of investors. This evolution is a testament to the resilience and potential of the Nigerian market, where opportunities are as vast as the land itself.
What strategies would you recommend for someone looking to start investing in real estate in Nigeria?
Starting in real estate can feel overwhelming, but the key is to start small and be strategic. First, I would say educate yourself because knowledge is power in this industry and in life. Begin with properties that are within your financial capacity, and consider investing in emerging areas with high growth potential.
Secondly, Networking is crucial and very important, connect with industry professionals who can guide you through the journey.
Lastly, be patient because Real estate is a long-term investment, and the rewards come to those who wait and plan diligently.
How important is location in determining the success of a real estate investment in Nigeria?
In Real Estate Location is everything. It’s the heartbeat of a successful investment. A property in a prime location can yield returns far beyond initial expectations, while a poorly located property can become a liability. In Nigeria, where infrastructure development is key, investing in areas with good road networks, proximity to city center, and future development plans can significantly increase the value of your investment. It’s not just about where the property is today but where it will be tomorrow.
What are some common risks associated with real estate investment in Nigeria, and how can investors mitigate these risks?
Real estate in Nigeria, like any other market, comes with its risks. These include market fluctuations, legal disputes over land ownership, and the potential for fraudulent transactions. However, these risks can be mitigated by conducting thorough due diligence and working with a reputable real estate brokerage firm. also, I would say it’s wise to diversify your portfolio and not put all your resources into a single investment. By being cautious and informed, you can navigate the risks and turn them into opportunities.
How important is portfolio diversification in real estate investment, and what are some ways to achieve it in Nigeria?
Diversification is the real deal of a successful investment strategy. In real estate, this means spreading your investments across different property types it could be residential or commercial and across various locations. In Nigeria, you can diversify by investing in properties in different states like Abuja and Lagos each has its unique growth potential. Diversification does not only reduce risk but also ensures that your portfolio grows steadily over time in different ways.
How do government policies in Nigeria impact real estate investment and its potential for wealth creation?
Government policies play a crucial role in shaping the real estate landscape. Policies related to land ownership, taxes, and infrastructure development can either spur growth or stifle it. In Nigeria, recent initiatives aimed at improving the ease of doing business and land registry processes have positively impacted the sector. However, there’s still a need for more consistent and transparent policies to fully unlock the potential of real estate as a wealth creation tool. As investors, staying informed about policy changes and understanding their implications is key to making sound investment decisions.
What is your outlook on the future of real estate as a tool for wealth creation in Nigeria?
The future of real estate in Nigeria is bright, filled with so much promise and opportunities waiting to be seized. As the population grows and urbanization continues, the demand for real estate will only increase. With the right policies, innovation, and investment in infrastructure, real estate will remain a powerful tool for wealth creation. I see a future where more Nigerians can afford homes, where the real estate market is accessible to everyone, and where the dream of owning property becomes a reality for many.
Are there any emerging trends or opportunities in the Nigerian real estate market that investors should be aware of?
Absolutely. One of the most exciting trends is the rise of sustainable and eco-friendly developments. As awareness of climate change grows, there’s a significant shift towards green energy buildings and smart homes. Additionally, the growth of the industry in Nigeria is creating new ways for people to invest in real estate, making it easier and more efficient. Another opportunity lies in the development of affordable housing scheme, which is in high demand. These trends not only offer great investment opportunities but also contribute to the overall growth and development of the country.
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