THE BENEFITS OF INVESTING IN COMMERCIAL REAL ESTATE IN NIGERIA
Nigeria has a thriving economy and a quickly rising population, making it a great commercial real estate investment opportunity. Commercial property demand is increasing, presenting an ideal opportunity for investors wishing to invest in the industry. Investing in commercial real estate in Nigeria has various advantages, which we will discuss in depth here.
1.APPRECIATION OF ASSET VALUE:
Commercial real estate investments have a high potential for appreciation in value, particularly in prime locations. When you invest in commercial properties in areas experiencing economic growth, such as Lagos or Abuja, you stand to earn significant profits due to the appreciation of the property value.
2. HEDGE AGAINST INFLATION:
Investing in commercial real estate in Nigeria is an inflation hedge since commercial leases include rent adjustment clauses that boost rental income in step with inflation. This can also help to keep an investment portfolio stable during periods of excessive inflation. As a result, by growing rental revenue over time, investors can safeguard their wealth against inflation by investing in commercial real estate
3. OPPORTUNITY FOR VALUE ADDED INVESTMENT:
Commercial properties can be repositioned to boost their value, providing chances for value-added investment for investors. Investors can increase the market value and rental revenue potential of commercial properties by renovating, improving, or redeveloping them. This method is especially effective in places experiencing strong economic expansion and significant demand for commercial buildings.
4. TANGIBLE ASSET WITH INCOME-PRODUCING POTENTIAL:
Commercial real estate is a tangible asset that is valuable in an economy with turbulent financial markets. Commercial property with income-producing potential provides a consistent source of revenue for investors and can be leveraged and used as collateral to acquire funding for future developments.
5. NAIRA PROTECTION:
Investing in Nigerian commercial real estate provides currency stability because the investment is paid out in the local currency, the Naira. For instance, if one invests in stock market the tendency for the market share to drop is visible, but not in the case of commercial real estate.
6. TAX BENEFITS:
Investing in commercial real estate in Nigeria comes with several tax benefits, including capital gains tax, property tax, and depreciation benefits. Upon selling the property, investors can benefit from capital gains tax exemptions or reduced rates, while depreciation benefits allow investors to write off expenses such as repairs and maintenance, reducing the taxable income.
7. CONTROL:
Commercial real estate gives investors with a great degree of control over their investment. Investors have the option of managing the property themselves or hiring professionals to do so, making it a hands-on investment choice.me
In conclusion, investing in commercial real estate in Nigeria is a wise investment option for long-term benefits. The industry provides a consistent stream of income, protects against inflation, gives tax advantages, and allows for diverse investment portfolios. Furthermore, commercial real estate has substantial value potential and can be repurposed to boost asset value. As a result, investors interested in investing in Africa’s largest economy can consider commercial real estate as a reliable and successful investment option.
Our Chemical Plaza at Ojota is excellent for commercial investment and is still available for sale and lease. If you are interested, please contact sarahf@casafina.com.ng to schedule an inspection and for more information.
