Understanding the Responsibilities of Property Developers in Lagos

Understanding the Responsibilities of Property Developers in Lagos

Property Developers in Lagos

Lagos remains the most populated city in Nigeria. The higher the number of inhabitants in Lagos, the higher the demand for properties in Lagos to accommodate the population. It is not surprising then that we have many property developers in Lagos. 

Property Developers in Lagos

To kickstart this discussion, let us talk about property developers. Who are property developers, and what do property developers do in Lagos? How can you join the bandwagon as a property developer?

These are some of the questions we will provide answers to in this article. Additionally, we will discuss the responsibilities of real estate developers in Lagos and how to begin your journey as a developer. 

Who Is a Property Developer? 

A property developer is an individual or organization that adds value to vacant land and properties.  Adding value to land or property starts with identifying such properties and their potentials.

Hence, property developers’ task starts with researching lands and properties worthy of development in their environment. 

For each property they identify, developers evaluate if the property is profitable or worth their investment. After careful research, they develop such properties and rent them out or sell them for profit. As risk-takers, developers expect to have a better return on their investments. 

Who works with property developers in Lagos? 

Property developers do not work alone. From the start of a project to the finishing parts, they work hand in hand with other professionals to actualize their dreams. Let’s explore some of the professionals they work with:

  • Planning consultant

Property developers work with planning consultants to plan the entire project and ensure they follow industry standards. 

  • Architect

To ensure that a project goes as planned, developers work with architects to create designs for their new construction projects. They also work on the redevelopment of old properties. 

  • Construction crew

The construction crew includes Electricians, Civil engineers, General construction operatives, Site managers, Construction managers, etc. They work with Architects to ensure that the construction process is seamless. The entire building task falls on the shoulder of the construction crew.

How to become a property developer in Lagos

Here are a few tips that will ease your journey into becoming a property developer in Lagos. 

Funding is essential 

You cannot become a property developer in Lagos without money. Your starting capital as a property developer depends on the size of the property, the real estate agent or company you are working with, and your location in Lagos.

If you do not have enough funds, you cannot work as a property developer. Does it mean only the rich can enter the property development field? Not at all!

Having enough funds is crucial for property developers, but you also need to seek funds from other sources. One of the best options is to borrow money from financial institutions, family members, friends, or other sources.

If you are not financially buoyant, you can kickstart your journey with other property investors in Lagos. As such, you can invest the fund you currently have in a property and earn your profit after the sales of the property. 

If you realize after evaluation that a project will cost one million Naira (1,000,000), and all you have in your account is Five Hundred Thousand Naira (500,000), you have a deficit of Five Hundred Thousand Naira (500,000).

Your first assignment is to check if you can get a loan of that amount or investors that can cover the deficit. 

What is your project capacity?

Now that you know your financial capacity, you should understand your project capacity. There are property developers that handle dozens of projects at a time.

Experience and having enough experts on their team can make it easier for such people to undergo several projects at a time. 

At the start, the chances are high that you can only oversee a project at a time, even if you have enough funds. It is best to start with a single project and use the experience to judge how many more you can handle at a time. 

Identify site development potentials.  

Having a zoning expert in your team is requisite for identifying the development potential of a site. Whether you are developing the property for commercial or residential purposes, the development potential depends on the site’s location and development around the area. 

Are there plans for improvements in the area in the future? Are there sufficient amenities in the area? What are the available employment opportunities? What are the available transportations options? Such questions will influence the decision of your zoning expert. 

Contact local agents

As a developer, you must work closely with local real estate agents in Lagos to get the best properties. Agents will help you know properties that are up for sale.

They can also help you determine the worth of a property you want to purchase and how much it will be worth after development. Local agents can provide market appraisals for the property you are contemplating.

Their input can help you make the right decision about the property you will buy. 

Study the local market

Studying the market is necessary if you want to become successful in the property development business. You need to understand the On-Market and Off-Market strategies. These strategies influence if you get the best property or not. 

Since you are not the only developer in Lagos, you can expect fair competition for public listed properties. But with public listed properties, you can get a list of properties in your area. 

Another option is to speak with flippers, architects, or estate agents in your area. They often have information about available properties. Speaking with the property owners helps you negotiate the best price for such properties. 

Final Thoughts Property Developer in Lagos

Property developers in Lagos will remain indispensable in the real estate industry. As risk-takers, they tirelessly work to ensure that residents of Lagos get the best property either for residential or commercial purposes. This article has delivered tips that will help you succeed as a property developer. 

Nonetheless, speak with experts in the field to minimize your risk and maximize your income. We are ready to assist you on your property development journey at Landshop. Schedule a consultation with us today!

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