EXPLORING OPPORTUNITIES IN REAL ESTATE BUSINESS

For the publication of NNEW Lagos chapter, February 2025

Real Estate is much more than land and buildings as generally perceived. Real
Estate is a piece of land and any natural attachments or artificial improvements
that are attached to it. Examples of natural attachments are water bodies,
mineral deposits, trees, etc. Artificial improvements include buildings (for
diverse uses), roads, farms etc. With this understanding, real estate is vast.

Core real estate business may involve; buying and selling; buying, improving and
selling; buying and holding for rentals profits from residential (long and short
let) and commercial (Office space, warehousing, manufacturing, farming etc.)
purposes and buying, holding and selling in future (often called land banking).
Investors should beware of a recent trend where land sellers promise
investment returns to depositors at a fixed term without actual ownership of
any piece of land in the name of land banking. It may work initially but may fail at
a point for several reasons as seen in the past.

The ownership of land gives the room a lot of business opportunities in real
estate. Many corporates or individuals are involved in real estate businesses
simply because they own land, and any other thing attached to the land. For
example, bank institutions, hospitals, hospitality etc that own land are into real
estate businesses in addition to the primary sectors in which they play. The level
of involvement of such sectors in real estate business activities may differ.

There are countless businesses and professions that are essential services in
the value chain of the real estate sector. Examples of such are real estate
agency, brokerage, building materials and tools, various engineering
professionals and technicians, Surveying, facility management, Legal
profession, security outfits, furniture and interior decoration, architecture,
gardening, landscaping, water supply, construction and home smart tools,
eco-friendly solutions such as solar systems, to mention a few.

Real Estate is a basic need for all living things and therefore the businesses
associated with it are vast and viable almost all year round. In fact, the
businesses are as many as human imagination. It is worth exploring the real
estate sector with all its value chains for business opportunities.

Some of the essentials that give a head way in real estate businesses are:

Acquiring relevant knowledge through research and training.
Being sure of the business that suits individuals or corporates and
capacity needed to be successful in it. Knowing all about a business and the
risks involved is key.
Registering with relevant government institutions, networks and trade
associations.
Continuous training to keep abreast of international and local trends.
Knowledge of future trends is helpful. For example, demographic and
economic needs in different locations.
Seeking legal advice and engaging professionals in managing areas
where expertise is lacking promptly will help avoid unnecessary pitfalls.
Insurance coverage helps to mitigate unforeseen occurrences such as
natural disasters.

Whether as an investor or a businessperson playing in diverse spheres of real
estate, triple bottom line (Profit, People and the Planet) should be the goal. This
gives maximum value to the people and any nation.

Written by Bunmi Obidare,
Head of Real Estate Sector, Lagos Chapter, NECA’s Network Entrepreneurial
Women.
Lead Real Estate Consultant,
TB & T Investments Co. Ltd
(Realtors and Facility Managers)
March 2025