Joint Venture Opportunities for Abuja Real Estate Investors
Home BlogReal estate InvestmentJoint Venture Opportunities for Abuja Real Estate Investors

Joint Venture Opportunities for Abuja Real Estate Investors




 

Prime Locations include Gwarimpa, Jabi, Asoboro, Utabo, Maitama.

These all are the prime locations however there are future places libe Katampe, Dawabi and so on.

When you move to locations like Lugbe, the price of building and also the cost of land aren’t proportionate. So, being a prime location needs to do with the worth of the land such that when a developer desires to invest his cash, it will be proportionate to the worth of the land. We are looking at wherever there’s infrastructure and is habitable, and where the worth of land will be equal to that of the development.

For instance, if you have a land of 6000 square meters in Katampe and it’s worth N100 million. And you have a similar size in Lugbe but it’s worth N30million, what would you build that would be proportionate to N30million? So, those are the key factors once we are tabling concerning prime locations. It is a location where there would be returns on property in order that the developer will make cash, and the land owner can even make cash.

Ideal Developments for the Prime Locations

This is not A1 – sided affair. Both the land owner and the developer contribute to the discussion on the kinds of development that’s appropriate for every location. It might even be that the landowner has gone half-way into the development but doesn’t have cash to finish it. So, the property type varies. But the end game is to bring two individuals with similar goals together so as to make profit. Both people will have to decide. But it still depends on the Capital Development Authority in Abuja (FCDA) specifications for the specific land in question. The FCDA has specifications for each area. One cannot just go and build whatever they like. There are places you cannot build bungalows and there are places you must build not less than 2 floors.

Rental Returns or Sales?

It all depends on many factors. For smarter people who understand that if they sell right-away they may not get as much value as they would, they will develop it. For instance, if you have a land that is worth N100 million and you add a worth of N80 million, then you split it with a developer, you will have 2 terrace homes or 2 semidetached duplex that you’ll be able to sell for N100 million each. You have added N100 million price to your land. You can even sell one and beep one. So you continue to have your land and you still have your house

How Would You Describe the Abuja Property Market?

I will say it’s expensive. There are too many properties for sale but few investors are on the market. I think Lagos is doing better because there are more investors. Abuja is developing however the properties are expensive. Everybody desires to stay in the capital. So it’s saturated already. The government isn’t developing the satellite town. They are not habitable. The infrastructure is almost zero.

Main Author: Omolola Femi-Alaran

CEO at City Realtors Limited




Share
  • Comments
  • 0