Real estate market in the Nigeria
Following a tough 2017 characterized by lack of finances which were virtually unavailable for real estate projects, and when banks considered such real estate projects for funding, the interest rates were on the high side. The office sector and retail market were not left out, as they suffered from oversupply and low demand which resulted to high vacancy rates and poor returns for investors & landlords.
However, the real estate market in Nigeria for the first half of 2018 has experienced a significant growth as it has retained its position as the fifth largest contributor to the Gross domestic product (GDP) of Africa’s largest economy. As Nigeria is saying goodbye to recession, the unstable currency, double digit inflation and falling production that saw the country fall into negative growth and weighed heavily on investor confidence, are giving way to a better picture for real estate market in Nigeria.
Purchase and Sale of Property in Nigeria
The Process of purchasing a property in Nigeria involves some important steps to be followed. Location plays a critical role in where you can purchase a property in Nigeria. The more commercially advanced and urban a neighborhood is, the more expensive it becomes to acquire a property at such locations, as some location have better road networks than others and this should be put into consideration. Important documents such as The Certificate of Occupancy (C of O), The Survey Plan, The Tax Clearance Certificate, The Deed of Assignment should be requested for and their authenticity verified before making any property transactions in Nigeria.
The process of Land investigation is quite complicated and should be left to professional realtors to do on your behalf. Also proper documentation is advised and it is important that all documents are detailed. There are also additional costs of purchasing a property in Nigeria which include Legal fee, Agency fee, Survey plan, etc. working with a trusted real estate agent saves you a lot of stress and risk involved in the property process as they have more experience in acquisition and selling of properties.
How Foreigners can Purchase Real Estate in Nigeria
Buying real estate in Nigeria is quite simple but some foreigners make the mistake of relating buying procedures of real estate in their respective countries to that of Nigeria. The property market in Nigeria represents investment opportunities as well as pitfalls which foreign buyers must avoid. Below are laws in Nigeria which may have a profound effect on the purchase of real estate by foreigners in Nigeria.
The Land Use Act of 1978 in Nigeria states that Governor of the State is responsible for the management of all lands on behalf of the people in Nigeria. Therefore, land cannot be owned privately in Nigeria.
The Governors consent is needed for the assignment of title to use, occupy, and improve property with a statutory certificate. Further consent from the state Governor is required for rights to sell, transfer, give or sub-let.
There are no freehold properties for foreigners in Nigeria, only leasehold which always goes for 99 years in different parts of the country.
Eligibility for Land in Nigeria
All land must be duly registered with the Governor of the State, signed or approved to be authenticated.
Signature of validity applied for in the land registry in the new owner’s name.
As a foreigner you must have an entry visa in Nigeria.
The LEAX project
The adoption of cryptocurrencies in Nigeria has gone on the high side over the past few years with trading reaching $1.3 million in February 2017, even though this figure is relatively low compared to global figures, it is of no doubt that cryptocurrency has come to stay in Nigeria.
In a bid to address real estate transaction problems, the Leaxcoin which is a decentralized global currency was created which adopts the Ethereum blockchain technology. Leaxcoin provides an end to end platform for real estate developers and customers, and a platform that proffers a solution to all real estate transaction problems, either in rent, purchase, and lease or in the property registry. The initial coin offering (ICO) which began on July 26, 2018 would end on October 26, 2018.
The Leaxcoin is a new ecosystem which Nigerians will benefit from immensely as merchants, real estate developers, and investors can securely and efficiently trade real estate. The Leaxcoin project will build a platform to seamlessly and transparently connect cryptocurrency with real-world assets. This platform is going to be a global community of experienced developers and real estate specialists who will help connect all real estate processes in compliance with countless jurisdictions of every country, state and city.
This platform has the following elements as its main focus:
Contracts, Listing and Real Estate Crowdsale
Official Leaxcoin Wallet
Community and Global Support
With the introduction of Leaxcoin to the Nigeria real estate market, there is going to be an increase in market reach, faster real estate transaction speed, and a community which will be rewarded for getting involved in the development, marketing and real estate solutions.