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Real Estate Investing and Diaspora Nigerians

The perpetual decline in the value of our legal tender in the foreign exchange market has made it challenging
for home-based Nigerian property investors to put their money into real estate. On the flip side, the situation
has benefited their counterparts in the diaspora as the weakening naira makes it cheaper for them to invest
locally. Nigerians in the diaspora have been able to pour in more liquidity than they could in previous years
because their bargaining power has continued to rise astronomically.

The advantage holds for two categories of investors: those who want to buy assets at a lower price and those
who want to pay less for a property that was initially pricey. With this edge, they have constantly enforced
their presence in the Nigerian real estate market.

However, this diaspora cash inflow into the real estate sector has been rather inconsistent in recent years.
“Have investors found another way to make their monies work for them? What is responsible for the
declining foreign investments? Are Nigerians in the Diaspora still funding Local Real Estate” are some of the
questions raised by Ugo Obi of Tilden Development Limited?

Obi further stated that “For centuries, real estate has held its place as a proven “safe haven” investment
because it offers steady growth and long-term value. A house that costs N100,000,000 today will probably
cost around N100,000,000 or more ten (10) years from now—even if the economy goes through some rough
patches – making it less likely to lose money when investing in real estate.”

The diaspora has a long history of contributing to the property market in Nigeria, with a considerable
percentage of investments done by Nigerians living abroad. To answer the question about foreign investment
into the sector – it’s a yes, but not quite as high – despite the edge offered by the dwindling naira.

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So, what has changed for Nigerian investors in the diaspora?

He said, “One could make arguments for economic instability, inflation, legalities, outrageous fees, or
unattractive ROI, especially for those investing in a rental property that could incur high maintenance costs in
the long run or become unaffordable for potential tenants.”

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“An unspoken reason for the reluctance of diaspora Nigerians to invest in the sector is the alarming lack of
trust displayed by realtors, evaluators, developers, and other key players. Several fraud stories have made
waves over the years denting the reputation of honest folks in the industry.” Obi laments.

Apart from the internal issue plaguing the Nigerian real estate space, there seems to be a monumental shift in
the investing habits of Nigerians in the diaspora towards the foreign exchange market and property
mortgaging in the western world. Having a property back home is now hinged on family ties and the hope to
return to Nigeria someday rather than finding it investment worthy.

Regaining The Interest of Diaspora Investors: Way Forward

Obi replies saying, “the major factor here is the attractiveness of investments in the sector. However, this
the singular factor is influenced by several other elements, such as economic instability, low ROI, lack of
professionalism by players, legal complexities, fear of the unknown, and more.”

“To regain the trust of diaspora investors, especially on the part of the real estate developer, there is the need
to deal more transparently. Decomplicate legal complexities, exhibit a high level of professionalism, showcase
verifiable portfolios of existing projects, set realistic deadlines simplify processes and payment plans – these
are our core values at Tilden Development Limited.” Obi points out.

He establishes this fact “With Tilden Development Limited, you’ll get the chance to build or buy into a
property in the commercial, residential or hospitality sector that’s been carefully vetted by us. You’ll be able
to make your investment decisions without worries—because we know the market better than anyone else
out there!”

Mr Ugo Dozie Obi
Tilden Development Limited
IG: @tilden_ng, FB & LinkedIn: Tilden Development Limited

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