Diversification of Real Estate Investments as a Growth Strategy

As a real estate investor, diversification is what lowers your risks. It is an investment strategy that lowers portfolio risks and guarantees stable returns on investments. When investments are carefully modeled and spread across diverse markets and segments in the real estate space.  

The primary aim of investment diversification in the real estate space is to mitigate risks and maximize profit. Of course, the chief aims of business operation are to renders services and maximize profit. For forward-thinking real estate investors and professionals across Nigeria, Africa, and even the global operating environment, diversification strategies remains one of the ways to competitively profitably remain in business.

The Nigerian, African, and even the global real estate operating environment is becoming very volatile and characterized by several economic, political, and social factors that can affect and even stop investment drives. In a country like Nigeria, where the economic and political risks of business operations are high, diversification becomes a must adopt option for overall business growth and development.

Real estate diversification here connotes spreading your resources – fiancé, human capital and technology in investing in commercial, industrial and residential real estate. Technology and skilled manpower (professionals) must be leveraged to achieve this.  Technology is the bedrock upon which investors rely to drive seamless investments across zones and regions.

Another way of real estate diversification is by investing across regions, zones, and countries.  For instance, a well-established estate surveyor and valuation firm whose operations cut across the rendering  of diverse services can have offices in Lagos, Abuja, Port-Harcourt, and at the same time operate the same business structure in other African climes like Ghana, Kenya, Egypt, among others.  Most real estate developers in Nigeria are already doing well in this direction.

The investment climate in a region differs from one another, business opportunities abound with their uniqueness as it relates to the environment and real estate. And this is the major reason why every wise investment should embark on all forms of business diversifications within the real estate space.

As an investor, to fully maximize your real estate investment potential, there is every need for the services of experienced professionals in financial modeling and risk mitigation.

ESV Folorunso Olanrewaju Isaac is an Abuja-based Registered Estate Surveyor and Valuer.