TOWARDS DEVELOPING FUNCTIONAL REAL ESTATE BUSINESS IN NIGERIA<\/p>\n
By ESV. Isah Adalkhali, ANIVS, RSV<\/p>\n
The real estate industry stands out among various other standard business sectors in the globalized world and Nigeria as a nation. This is on account of its high propensity for profit-making, wealth creation and cash flow. For a real estate business to be a potential money spinner, guaranteeing steady profit, it has to be well established and administered in a responsible and strategic manner.<\/p>\n
This article therefore serves two valuable purposes: One, is to provide rare insights and specific clarifications to real estate assets business as it is practiced globally. Two, is to offer a stimulating framework on how real estate business can be established and administered efficiently for enhanced business success and gains<\/p>\n
It is therefore imperative to provide meanings and perceptions to real estate business. R. U. Ratcliff describes real estate business as a mechanism of matching space users with space providers through market transactions. Alfred Cliff provides a more detailed meaning, noting that real estate business involves the creation, improvement, management, and transfer of real property rights and physical assets in a market. <\/p>\n
In a specific term, real estate business essentially encompasses purchasing, retailing, leasing of land resources and building assets. However, critical components that further constitute real estate business, include: legal rights and property assets, in addition to financial investments which help the investor to amass the required funds to run the business profitably <\/p>\n
Real estate business is not just about buying and reselling properties and offering rental services, it involves other activities. These include: Property development, management and real estate brokerage and wholesaling. More so, it must be geared towards assets assessments, utilization and capital mobilization. <\/p>\n
Global business statistics made available by McKinsey put the world\u2019s real estate business value at over $1 trillion. In its latest rebasing exercise, the National Bureau of Statistics indicated that the contributions of Nigeria\u2019s real estate sector is approximately 10.7 % to 13.4%. This figure places the real estate industry in Nigeria as the third largest economic sector in the country, surpassing oil and gas subdivision of the economy.<\/p>\n
Both the global and national figures on real estate business underscore the critical place of the sector in the economies of the world and Nigeria as a nation. This understanding explains the importance of establishing strategic real estate business with all the proficiencies it deserves. It is not in the interest of the investor to establish a substandard real estate business that is, worse still, poorly administered. In the short-run it would certainly be counter-productive. <\/p>\n
For a real establish business to be established successfully and strategically, four major steps and mechanisms must be involved. They are: Market survey or investigation, real estate business blueprint, good capital base and networks and partnership plans and willingness to implement it.<\/p>\n
The first step a prospective real estate business investor must take to demonstrate urgency is to identify his target clients, their characteristics and psychological attributes. This information is necessary for him to know how to engage them even before the business outfit takes off. It also helps him to establish their areas of interest in real estate sector and therefore whether they would need his line of real estate business or not . This would enable him to take a decision on whether to continue, reshape or drop the business idea entirely<\/p>\n
The second step necessary for real estate pre-launch which is the preparation of business blueprint is the most important tool a prospective real estate investor requires to succeed. The blueprint must be strategic enough to engender real estate business goals attainment. Without a strategic business plan, the venture would fail even before commencement. <\/p>\n
Real estate strategic business plan therefore encompasses the objectives, mission and vision of the incoming business, the target market and the capital base. It is crucial that the business plan contains roadmap for the launching and effective growth of the venture. It is essentially tailored towards achieving the goals of the venture<\/p>\n
Besides, it is important to have adequate capital base before commencing a real estate business. The capital would keep the firm running until profit begins to roll in. The capital would cover start-up costs which include buying of assets for transactions, equipment, renting of office accommodation, paying legal fees and initial marketing expenses. <\/p>\n
The pre-launch fund requirement would also cover the operational and logistical costs; personnel salaries, commissions and other remunerations bills. Without desirable capital base, the business won\u2019t be able to take-off effectively and may die soon after taking off.<\/p>\n
Besides, an intending real estate business investor must have a functional plan on how to go into partnership with existing estate firms, especially with those that are in the same line of estate business. This would help the new firm to take-off in an effective and profound manner. This is because the new firm would leverage on the cooperation and alliance built to be able to pool considerable resources and unlock property deals that would enable it overcome budding business challenges <\/p>\n
Given the nature of real estate business, the industry has quite a number of entry points. These include: residential real estate business, commercial, industrial, short-term rental, property development and management and so on. It all depends on the prospective investor to decide which of the sub-sectors of the real estate business he wants to align. <\/p>\n
But then, the decision on the real estate business outlet to establish must be dependent on empirical finding. This underscores the imperative need for a prospective investor to carry out a properly conducted market research before arriving at the decision. It is important to note that a poorly conducted market survey is capable of leading an investor into taking a wrong decision which has the potentiality of ruining the business when established.<\/p>\n","protected":false},"excerpt":{"rendered":"
TOWARDS DEVELOPING FUNCTIONAL REAL ESTATE BUSINESS IN NIGERIA By ESV. Isah Adalkhali, ANIVS, RSV The real estate industry stands out among various other standard business sectors in the globalized world and Nigeria as a nation. This is on account of its high propensity for profit-making, wealth creation and cash flow. For a real estate business […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-17147","post","type-post","status-publish","format-standard","hentry","category-opinion"],"_links":{"self":[{"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/posts\/17147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/comments?post=17147"}],"version-history":[{"count":1,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/posts\/17147\/revisions"}],"predecessor-version":[{"id":17148,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/posts\/17147\/revisions\/17148"}],"wp:attachment":[{"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/media?parent=17147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/categories?post=17147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/tags?post=17147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}