Management is the root core of every investment. Just like going to school, you have to manage your time more efficiently or you may end up with a carry over repeat class and whatsoever. In the world of business and investment, this is called bankruptcy. There are so many industries out there with several opportunities yet the limitations have been an overall poor management. I must be sincere with myself, I still have a lot of discipline here to come out a standard entrepreneur.
I will be looking at an industry that has shown signs of profits especially in the long run which has faced many mismanagements especially by the locals. How big is the real estate industry? Globally, this is estimated to reach $15 trillion in the next five years. A big opportunity for those who will be able to make the most of it. We have to understand that housing is one of life’s essentials. human population is on the increase and we are seeing even currently a high demand for structures especially in the urban regions.
Jumping a little off course; this can be incorporated into the future of real world asset tokenization. I have talked about a pending massive market explosion. When many investors flood the digital space, real estate entrepreneurs will have enough funding capital to input more buildings. Yet it boils down to how many will be keeping ALL needed proper documentation to attract foreign investors especially?
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Let me come back to the local market. What prompted this article is how local entrepreneurs within the nation are degrading such a valuable market. Poor structuring, refurbishing, customer (or more appropriately tenant) relationship. There has been many absences of professionalism in this industry. The fact is that most who are involved in this space are not real estate owners by experience or zeal but by inheritance. An industry that is minting millionaires is just a hand to mouth activity for many.
The Nigerian real estate market is currently estimated at roughly $2.5 trillion. We are looking at a huge percentage even when comparing with the future’s estimation of $14 trillion. Adding to this, the very local real estates are not put into considerations here. Urbanization is gradually hitting into the remote part of my state, something I feel those who have inherited buildings should be taking huge advantage of. A lot of people are so poor when it comes to economic understanding and financial intelligence too.
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To me, the real estate industry is really moving in the areas of leased shops and self contents NOW. What I have observed is that those who get married are likely to start looking for a house of their own. The population of youth is very high and they really dominate the city. Quick bucks for smart realtors who are ready to do that one year business. students are in demand for it and houses are not even available to spare. I am just wondering why making local inherited landlords are not upgrading to benefit.
Adding to that too, the area of small scale enterprise is another boomer. As you know, Nigeria is driven by the SME economy, it has been what has held the country this far after the overdependence on crude oil market have failed. Small kiosks and shop outlets are here and there to meet up with daily survival. I remembered I attended a seminar and the speaker said he is really turning his attention to the real estate industry. His plan was to have 12 different set of buildings where he can know he is settled financially from January till December.
To conclude, let me add, there is a pending exploding market for realtors. Nevertheless, the challenge here is that many house owners over here lack little to no knowledge on how to properly manage this asset. They are not even after the compounding effect of this industry. How soon before they sell out as many others have done. In the absence of professionalism in any field there are likely to be flaws. Personally, the real estate industry is one of my most eyed investments. I am always surprised when I see people play with such opportunities. For me, I must surely make the most of this sector. It will boil down to financial education and more exposure to these markets, something I am ready to comply with for the needed difference.