BENEFITS OF REAL ESATE INVESTMENT

By ESV. EZEKIEL, ECHEZOLACHI O.,

Principal Consultant: Eche Ezekiel & Associates; Estate Surveyors and Valuers.

Real Estate is known globally as one of the most profitable and secured investing opportunity. Its benefits are not just financial, it also benefits investors socially. With a massive over 200 million population, Nigeria is a fertile ground for such investment. The housing deficit in Nigeria has grown to an estimated 28 million units in 2025 according to the Federal Mortgage Bank of the Nigeria (FMBN). Population growth, rapid urban migration, and rising construction costs are widening the deficit. This is an increase opportunity for investors in real estate. Investment can be broadly classified into residential, commercial, recreational, agricultural, etc portfolios. This article will consider some of the key benefits of real estate investment within our society.

CAPITAL APPRECIATION
Real estate is known for rapid capital appreciation. Although the level of appreciation varies with location the baseline is real estate add a significant value to capital investment over time. It has been shown to be a hedge over inflation, increasing the wealth of investors regardless of inflation. This is driven by the urbanization, population increase and short supply of housing.

STEADY INCOME FLOW
Rents from real estate are periodic, usually monthly and often paid in advance of one year. Depending on the mode of rent collection, rental real estate is guaranteed steady income for the stated period. Annual rent yield in cities across the country is high often yielding higher returns than traditional savings accounts or bonds.
Rents are maintained at optimum through right investment decision with recourse to location, property maintenance and management.

SECURITY OF INVESTMENT
Real estate investment are known to tangible and secured. It stand out as an investment that can be seen and touched, this in comparison to other forms of investment offers a form of security for investors in Nigeria. This is especially important in Nigeria given our level of understanding (or lack of it thereof) of other forms of intangible investments. It is also on the strength of this security that real estate investment is mostly accepted in Nigeria as collateral for loan security by financial institutions in Nigeria.

PRIDE OF OWNERSHIP AND CONTROL
Real estate has the advantage of conferring total control and pride of ownership to its investors. In comparison with passive investments like stocks, real estate gives investors complete control over property management decisions. This is a form of social benefit that can transmit into financial gains as the decisions are devoid of bottlenecks and can lead to increased income from the property/investment. Also Properties can be passed down to future generations, creating a lasting financial legacy.

MEASURE OF WEALTH AND JOB CREATION
The wealth of individual and states are stored in/and measured by its real estate investment. That is why cities are as developed as the real estate investment in them. Such developments in turn creates jobs for all the professionals in the buit-up environment such as, architects, engineers, town planners, quantity surveyors, estate surveyors and valuers, etc and none professional alike.

HOW TO DEAL SAFELY IN REAL ESTATE
It has to be stated at this point that there are associated risks in real estate investment as with any other form of investment largely due to the unregulated nature of the market; investments could be susceptible to fraud and defective title. But the risks can be mitigated with proper guidance from professionals.
This is where Estate Surveyors and Valuers; the real estate professionals comes in. The Estate surveyor and Valuer is the professional to acquaint with from the conception of the real estate investment to the execution (purchase, development, redevelopment, etc), up to the management of the property. The Estate Surveyors and Valuers Registration Act, popularly known as Decree Number 24 of 1975 (Now CAP. E13 LFN 2004) empowers and qualifies the Estate Surveyor and Valuer as the professional to carry out the following duties in the built-up environment:
A) Determination the value of all description of property and of the various interests therein;
B) Managing and developing estates and other businesses concerned with the management of landed property;
C) Securing the optimal use of land and its associate resources to meet social and economic needs;
D) Determining the structure: and the condition of building and their services and advising on their maintenance, alteration and improvement;
E) Determining the economic use of land resources by means of financial appraisal for the building industry; and
F) Selling (whether by auction or otherwise) and buying or letting (as an agent) of real and personal property and of any interest therein