HOW TO INVEST PROFITABLY IN ENUGU REAL ESTATE

The real estate market in Enugu is in a condition called "the buyers market". Market forces indicate that the supply of properties for sale in Enugu is well above the demand for them. This is supposed to be an advantage for an investor because the condition gives a buyer a lot of bargaining power to acquire properties at very low price. But the opposite is the case. From a business point of view, not a lot of people are investing in Enugu. Enugu State suffers from a stereotype. Its perceived as either a civil service state or a students state. This stereotype is a big deterant for would be investors because they believe there's no profitable real estate business opportunities in the state. Looking at the economic indicators of Enugu State, an investor will most likely say that the state doesn't encourage investment.

Here's a Snap shot of Enugu's Economic indicators:

GDP: $4,396,590,769 (unlike lagos that has a GDP of $33,679,258,023)

Disposable income: N18,000.00
 (Derived from the average of the minimum wage of state and civil service - income tax)

Unemployment: 15%

When compared to other states like Lagos, its clear that Lagos will be favored over Enugu by investors.
According to the result of this analysis, its easy to see why investors would shy away from investing in Enugu. But I urge you not to be deterred.

The truth about the matter is that no two states share identical market opportunities and it isn't fair for one to impose the market opportunities found in one state on another state then base an investment decision on that. Enugu State has its own real estate market opportunities and the notion that "money no dey Enugu" is a myth.
When you consider the strengths of Enugu state and its proven track records, you will find that investing in Enugu real estate is very lucrative for investors with a taste for both long-term and short-term investments. You will find that the state's weaknesses can easily be turned into its strengths.
Let's identify the market opportunities in Enugu by first examining its strengths. Enugu is a civil service state and a college city. The people of Enugu have high moral values with roots in the Christian faith. The people of Enugu have an easy going attitude.

A wise investor should see the opportunities these qualities offer.
From an insider's point of view and from my experience as a realtor practicing in Enugu, I will give you a closer look at the market situation.

Opportunity 1: Let's begin with the fact that there are over 4 Universities in Enugu State. Enugu state is a study destination for knowledge hungry youths. Institute of Management and technology (IMT) is one of them and for the purpose of this post, we will use IMT as our statistical sample for this analysis. IMT campus 3 has over 6,000 students registered there. IMT campus 3 has little to no hostels to accommodate these student. There's an alarming shortage of hostel accommodation for the students in Enugu State.

Opportunity 2: Given the high unemployment rate in Enugu, its clear to see that the number of self employed individuals in the state far exceed the number of individuals in the labor market employed by either the civil service and the organized private sector. Self employed individuals need shops and office spaces where they can ply their trade. This has resulted in a high demand for business premises in Enugu. In recent times, the advent of online shops have further increased the demand for shops in Enugu coming from these online retailers seeking to establish a physical presence for their online outfits in the state. The supply of shops and office spaces in Enugu is far below its demand.

Opportunity 3: As a civil service state, majority of the workers in Enugu can't boast of very high income. Many people within that low income bracket can't afford a 3bedroom flat that is renting at N600k per annum. So its no surprise to find vacant but tastefully finished 3bedroom flats and duplexes within the city. The result is an increase in demand in the properties that most people in the lower income bracket can afford which is why you find people cuing up to rent 2bedroom flats and studio apartments in Enugu. There is a scarcity of tenement buildings of this nature in Enugu.

Opportunity 4: Finally, let's consider entertainment and the easy going attitude of the people of Enugu. Enugu is popularly know for its goodlife attitude, "uwa ngbede". A walk along Nza street in Independence layout over the weekend will do more than convince you of this fact. But I'm not going to talk about the hotels and hangout spots that spring up in the city daily(which is also a very lucrative investment option). Instead, I want to focus my attention on a highly visible but very neglected profitable real estate business opportunity in Enugu. There's a high value on marriage in Enugu. For the purpose of this illustration, we will use the Catholic church as a sample for this case study. There are over 50 Catholic church premises scattered all over the town. Each premises plays host to 2 weddings every other saturday during the year totaling a minimum of a 100 weddings celebrated in these churches every week. There's a high demand for event centers that can serve as wedding reception halls for hire in Enugu. For a wedding that will hold in November, one has to book the reception hall in August in order to ensure availability. The market for event centers hall hiring is valued at a minimum of N10m weekly in Enugu. An investor that owns a building with 2 event halls for hire stands to earn a minimum of N450k weekly. There's a big shortage of such event halls for hire in Enugu.

In summary, here's a list of ideal real estate investments to part take in when it comes to Enugu.

1. Tenement buildings comprising of studio apartments and 2bedroom flats.

2. Student hostels.

3. Event center halls for hire.

4. Shopping malls and office plazas.

5. Hybrid real estate option. (For investors with short-term goals)

Going forward 5-7yrs from now, I would add

6. Bonded warehouses (pending on the commencement of the forth coming cargo service infrastructure of the Enugu international airport.

In conclusion, I would like to point out that every state in Nigeria has its own unique business and market opportunities with respect to real estate investment. I hope that this post opened your eyes to such opportunities that are available in the real estate market in Enugu.

For more information, get in touch with us. Our contact details are available in the CONTACT US/ ADVERTISE WITH US page of this blog.

Do have a nice day.