MITIGATING RISK IN REAL ESTATE INVESTMENT

Esv Adebola Adebule

Real estate investment in Nigeria, particularly in Lagos State, offers immense opportunities but equally exposes investors to significant risks. The dynamic urban environment of Lagos—with its rapid population growth, fluctuating market trends, and evolving regulatory frameworks—demands a structured approach to risk management. The collapse of several unapproved buildings in areas like Ikoyi and Lekki, the oversupply of luxury apartments in some districts, and the persistent land title disputes across the state underscore the need for investors to approach property ventures strategically. Feasibility and viability reports serve as the twin pillars of informed decision-making, providing a systematic framework for identifying, analyzing, and mitigating investment risks before capital is committed. By understanding the difference between feasibility (can the project be done?) and viability (should it be done?), investors can avoid costly mistakes and ensure project sustainability.

Core Concepts and Distinction Between Feasibility and Viability Feasibility focuses on the technical, legal, operational, and market possibility of a project, while viability assesses its financial, economic, and long-term sustainability. Feasibility