What Is Real Estate?
The cost of hiring real estate companies is a topic to be discussed among many Nigerians. Before this is done, people need to first understand what real estate is. Real estate, sometimes referred to as “real property,” is technically land plus any other tangible improvement that might rest upon it or be installed in it. The improvement might be a building that has been erected there or a roadway. It can be something that’s been inserted into the ground, such as a septic system. Land with any of these structures is said to be “improved”. It is “unimproved” when it lacks them.
Real estate according to Wikipedia is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water. Meanwhile, the business of real estate is the buying of land, building, or improving the land. Real estate services are in high demand now in Nigeria due to the increasing population density in southwestern states like Lagos, and Ogun. Oyo etc.
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Real Estate In Nigeria
The Nigerian real estate market in the last few years has rapidly expanded and is recording exponential growth; steadily increasing foreign direct investment, fast urbanization, and strong corporate demand. However, the real estate market still lacks proper funding. Since real estate has to do with the building, it is affected by the cost of materials. The cost of building materials has been increasing for the past few years, owing to the devaluation of the naira, the Nigerian currency. The Nigerian construction industry depends heavily on foreign importation for the raw materials and equipment used for construction. Investing in the real estate market in Nigeria costs money and it is done by real estate companies.
Real estate companies are bodies that help in the buying and selling of landline buildings of different kinds of houses (including luxurious houses), and the renovation of old houses. They take all the stress away by helping you handle all the necessary documentation, the search for original materials, and the need for an aesthetically built house. These companies have a track record of what they do, they make sure you get exactly what you want. All you need to do is pay them. They are not like roadside bricklayers. They have professionals working for them and they monitor all these projects from start to end. You will also be assured you are getting the best.
The Services That Real Estate Companies Offer
Real estate companies in Nigeria offer different services as they concern with the different features of real estate. It can start from the buying and selling of land to the services that improve the land. We would be listing the major services offered by many real estate companies in Nigeria. You will be right to contact a real estate company if you are looking for any of these services.
Land Sales
In Nigeria, this is a thing because of the large mass of land still inhabited. This might be due to its far distance from civilization or the urban world. It also might be due to a lack of accessibility (roads) and social amenities. The Nigerian government does a poor job of providing new infrastructures so progress is slow, but there is progress. As the roads pass through the inhabited places or promise to do so. Many real estate companies start buying and selling the surrounding lands. This is a very lucrative business. The selling of land continues to appreciate. Land like this is usually in rural areas that are just getting urbanized. It can cost ₦700,000 – ₦15,000,000.
Real estate companies are also in charge of supervising the selling of land in major places where opportunities for new building projects come. These opportunities come in form of demolished buildings and land reclamation from the lagoon. Land reclamation in Lagos occurs in places like Lekki, Victoria Island, and Ikoyi. This land reclamation provides space where there wasn’t one before. Lands like this are very expensive because of the high standard of living in such locations. It will cost at least ₦17,000,000 to buy this type of land.
Architectural Drawings
Architects design a building before it is built. They can also convert these designs to images. They give their clients a pictorial representation of what the building would look like. Real estate companies offer architectural services for any construction. It can cost from ₦750,000 – ₦2,500,000. Architectural drawings also include the different types of drawings required for the building to be finished. This includes:
- Structural drawing: This drawing provides a complete view of the structure or structures involved in the building project. Structural drawings are typically prepared by licensed structural engineers relying on input from architectural drawings. It emphasizes load-carrying members (e.g steel beams, joists, framing materials, and so forth) of the structure. Real estate companies charge ₦850,000 – ₦2,200,000 for this.
- Electrical drawing: Electrical drawing illustrates information about lighting, wiring, power, and circuits for communication within the commercial construction project. Electrical construction drawings are meant to illustrate the physical layout of the wires and components they connect inside the building as well as the outside power grid. They cost ₦600,000 – ₦1,200,000.
- Plumbing and sanitary drawings: This drawing is not common in Nigeria, it shows the system for pumping water in and out of the building. Equipment like pipes, pumps, drains the nature and size of sinks to the location of gas are carefully illustrated in a drawing. Plumbing construction drawings also indicate the position of sanitary, piping for water supply systems, fixtures, and the process to connect every accessory. It costs ₦700,000 – ₦1,200,000
- Mechanical drawing: It is a type of technical drawing that shows information about heating, ventilating, air conditioning, and transportation around the building (Elevators or Lifts and Escalators) It is a powerful tool that helps analyze complex systems. These drawings are often a set of detailed drawings used for construction projects. It costs ₦900,000 – ₦2,500,000.
Quantity Survey – BOQ
Bill of quantities (‘BoQ’ or ‘BQ’) is a document prepared by the quantity surveyor that provides the building project with specific measured quantities of the items of work. It gives the cost of materials required for any kind of work needed to complete a building project. The quantities may be measured in number, length, area, volume, weight, or time. Preparing a bill of quantities requires that the design is completed and a specification has been prepared.
The bill of quantities is issued by quantity surveyors or real estate companies, for them to prepare a price for carrying out the works. it provides a fair and accurate system for pricing. This is needed to know and understand the cost of a project before starting it. Real estate companies use this as a guide, they also offer it as a service. The bill of quantity uses the architectural services to determine the requirements of the building, then it gives the cost of materials required to meet this requirement.
Building And Construction
This is simply erecting the structure, more like building the skeleton. It can also include the plastering job. It entails everything that has to do with sand, building blocks, and cement. Real estate companies act like contractors, they have access to many contractors and engineers that can build houses as specified in the architectural drawings. This is not an easy task but many Nigerians have gotten accustomed to the use of roadside bricklayers. This is the reason for the many poorly constructed buildings in Nigeria. Meanwhile, real estate companies hire professionals to do the job. They also have experience in handling large and major projects.
Real estate companies handle the building part so well. They can also do so in a short time without compromising the quality of the building. This service requires getting all the materials listed in the bill of quantities, at least the ones required for the building. An engineer is always on-site monitoring the structure as the building progresses. Real estate companies make sure every detail expected is met.
Interior Design
Interior design is turning space inside a building into its right order, style, and color. It is the process it takes to plan and oversee the proper placement of fittings and fixtures in a space within a building, to put it in its best color, pattern, and lighting effect. It also focuses on suiting the client’s desires and it shows professionalism. The person who is expected to turn a once unattractive space into a sparkling, beautiful, attractive, and functional one with the use of drawings is called an Interior Designer. Real estate companies have experienced interior designers working for them.
Interior design is what takes place inside the building for the building project to finish. The moment you finish the interior designs the building is ready to be moved into. Real estate companies offer interior design services as well. They have ready-made designs or past catalogs that you can use. They can also make something else if you have that in mind. Real estate companies can charge over ₦10,000,000 for interior design, It could also be as cheap as ₦1,500,000.
Note: Many real estate companies offer all these services together in different packages. They will help you buy the land and improve it to the structure of your taste.
Real Estate Construction Stages
In dealing with the cost of real estate, you must pay attention to the construction stages. It takes a lot to acquire land and to improve it to a finished stage. This is important because each stage has an individual cost. The kind of building you want and all its specifications determines the price you will pay.
Most real estate companies split their construction stages into three, we will be discussing each one and the pricing for each stage. This pricing is affected by different factors like sizes, cost of materials, and so on.
Acquiring a Land
The first stage in every real estate construction is acquiring land. Real estate starts with the presence of land. This is usually measured in plots or acres. The land could be a place that was just demolished, a bush area that needs to be cleared, or a newly reclaimed land from a water body. Whatever the case is, it means you have landed at the end of the day.
Real estate companies sell fallow land, that has nothing on it so they must have cleared the bush or removed all the debris. This allows the building to start as soon as possible. One of the major factors that affect the cost of buying land is located. For example, a plot of land is more expensive than a plot of land in Ikorodu, even if both places are in Lagos.
| Location | Average Price (per plot) |
|---|---|
| Lekki | ₦25,000,000 – ₦120,000,000 |
| Ikoyi | ₦30,000,000 – ₦150,000,000 |
| Ikorodu | ₦5,000,000 – ₦15,000,000 |
| Victoria Island | ₦25,000,000 – ₦90,000,000 |
| Ikeja | ₦25,000,000 – ₦50,000,000 |
| Wuse 2 | ₦20,000,000 – ₦45,000,000 |
| Wuse | ₦35,000,000 – ₦80,000,000 |
| Asokoro district | ₦12,000,000 – ₦25,000,000 |
Note: The cost of land can be significantly cheaper in areas that are not popular.
Building The Carcass
The carcass is what a typical Nigerian calls an “uncompleted building”. This is true except this “uncompleted building” would have a roof so there is no reason to lay blocks again. All the laying of blocks is done at the carcass stage. Sometimes, the carcass stage can include the plastering of the walls. This is something you might have to ask the real estate company you want to put in charge of the carcass before finalizing your negotiations.
Meanwhile, real estate companies do a great job with carcass construction. They also do it in a very short time. The cost of building materials is the major thing that affects the cost of the carcass. Transportation of the materials is also another factor, so the best way to do this is to pay a real estate company to get the building materials. They know the original materials and they will buy in bulk from familiar professionals, thereby, reducing costs. If you want a luxurious building, real estate companies are your only choice.
| Types of Carcass | Average Price |
|---|---|
| 3 bedroom flat (Bungalow) | ₦3,500,000 – ₦7,000,000 |
| 3 bedroom flat (2 story building) | ₦7,000,000 – ₦12,000,000 |
| Duplex (3 bedrooms) | ₦6,500,000 – ₦17,000,000 |
| Duplex (5 bedrooms) | ₦7,500,000 – ₦20,000,000 |
| 3-story building (12 classrooms) | ₦13,000,000 – ₦23,000,000 |
| 4-story building (15 classrooms) | ₦22,000,000 – ₦31,000,000 |
Interior Design And Finishing
Interior designs and finishings are what turn the house into a place you can move into from the carcass stage. This involves painting walls, wall screeding, tiling, POP installation, wallpaper installation, etc. It is making a building look like a place where activities can happen.
Interior design is according to the taste of the customer. They have the full say on what kind of design they want to get what they desire. Real estate companies have ready-made packages for interior designs and finishings so customers would just select the one that suits them.
Building Luxury Homes
The demand for luxury homes in Nigeria is increasing rapidly. Many celebrities want to own the house of their dreams so is any wealthy Nigerian. This kind of house is strictly built by Real estate companies. What makes a luxury home is the uniqueness of its design and the cost of its environment. The location is a major factor, you will find luxurious homes in Ikoyi, Lekki, Banana Island, etc. This is because of the high standard of living in these environments. Many of these types of houses are found in places that are exclusive to only the wealthy.
It will cost at least ₦150,000,000 to build a luxurious house. The cost is highly dependent on the quality of the design and the cost of the materials used to build the house. Most of the materials are imported, and the architectural design is also unique. This kind of house requires professionals that are specialized in turning aesthetic paper designs into reality. These professionals are real estate companies.
Benefits of Hiring Real Estate Companies
- Reduces extra cost: The amount it costs to hire real estate companies to build your desired house might seem on the high side. Meanwhile, the chances of getting what you want are also very high. You won’t have to spend more money because of mistakes.
- Saves time: Real estate companies stand a better chance of meeting a deadline in constructing a standard building. Real estate companies also provide real estate services in a short time so you can save a lot of time.
- Quick sales: For real estate services like land sales. It would be faster to sell through a real estate company than to sell it yourself. Real estate companies have access to buyers so they sell land faster.
- Professionalism: The way real estate companies offer their services is always professional. Their work has a high standard.
- Brand reassurance: Real estate companies have a brand name to protect so the quality of the service they offer affects the brand name of the company. By protecting their brand name they are providing you with a quality service.
How to Save Money on Real Estate
- Bargaining: One way to save money on real estate is to bargain. Try to bargain for the best price you can get so you can pay less.
- Choose an available package: Many real estate companies have packages that are fair enough. They are made based on popular demand so choosing them might save cost. Meanwhile, You will pay lesser because they know their way around the type of building for that package, so this allows them to cut costs.
- Compare quotes: Get quotes from real estate companies online. This allows you to decide the best price to hire a real estate company so you can get a quality service for cheap prices.
How do we know these prices?
Thousands of people ask VisCorner for price quotes every year. We track the prices they get from Real Estate Companies and share them with you.
