The focuses is on apartment units When we think about real estate investing.
However, there are numerous land property types to invest in. Whether looking for a place to live, work, or shop, property, and structures is needed.
So we ask these questions:
- What other assets can be invested in vacant land?
- What benefits am I to expect?
- How profitable is this business?
Random guesses and implausible ideas were thrown into the air until Mr. Ndubuisi, CEO of Vafiero Intl, dropped the bombshell on the whole team leaving us stunned.
A land investment asset that stands almost on an equal footing to the demand on good housing in Lagos.
He said, only a few smart investors enjoy the benefits of this asset once they understood its operation and profitability. So Mr. Pascal Ndubuisi (CEO) continues to talk about the growing business for all who are not looking towards building a home.
So I made some calls and did some research and found this. Stay with me.
What is a Warehouse Used for?
The primary purpose of a storage warehouse is the storage of goods and other raw materials. These establishments can be privately owned or by a public entity or by the government of the country.
Primary Targets are companies, individuals or governments who are looking for temporary or long term storage of goods.
The ensuing are the major profits of a warehouse storage facility:
Storage of goods: The primary function of a warehouse is to store goods or raw materials in a safe environment. Goods can be stored in large and small quantities.
To stabilize prices: A perfect example to explain this function is the Covid 19 pandemic. It is used by the government during demand and supply fluctuations. Normally, supply from the warehouse can help keep the supply chain flowing until things return to normal.
Safety Measures: Warehouses are usually heavily protected with high-security technology. Goods do not deteriorate or are they exposed to fire etc. The warehouse-keepers take all the essential arrangements to provide fortification from any destruction.
The Growing Need for Nigerian Warehouses
From 2013 to 2018 the Nigerian warehousing market was appraised to reach heights
Thanks to the enormous volumes of international trade, manufacturing industries, and foreign investors into the country. Nigeria documented a high note of growth. The development of the free trade zone areas and industrial parks has led to high demand for warehousing in the country especially, in Lagos state.
Warehouses in the Nigerian Market
The usual target for most warehousing investors is the food and beverage industry due to the high demand caused by the large population in the country. Fortuitously, food trade between Nigeria and European countries has improved because of this. The demand for good warehousing started with the rise of supermarkets. And increase of the e-commerce sector with many businesses now offering e-services.
Today, there is a growing need for different warehousing facilities. For instance, the Nigerian government has set up the Automotive Industry Development Plan to build the automotive industry. This pandemic has taught us more than enough to prepare for any type of situation. Where goods might leave immediately, hence, agricultural and health supplies and drugs will need to be stored in cold storage. There is already a shortage of those.
3 Key Aspects to Consider When Investing in Warehouses
We will focus on four critical items as they relate to investing in industrial real estate and specifically warehouses:
- What makes the right location for a warehouse?
- What are the assistance a warehouse brings?
- What’s the time-frame for development of a warehouse?
Selecting a Location for a Warehouse
When picking a location to build your warehouse it is in is crucial you look at the location for distribution and growing need for storing a particular product or item. Accesses to highways and closeness to a port or town intersect to make it easy for large trucks to move around, make easy turns without causing much traffic as they tend to break down a lot.
A large piece of land will be required to house the goods and shipments being brought in by those large trucks. For example, if you wanted to build an 80,000 sq ft building, you would need about 120,000 sq ft of land or 3 acres.
Lagos is the moneymaking hub of Nigeria and the closest to major points of the trade like seaports, airports, and industrial parks in the country. Ogun state near Lagos, Kano, Ibadan, Kaduna near Abuja, and Nassarawa are also regions that experience growth in this sector as well.
With over congestion in the prime regions, investors and logistics companies are now seeking to shift to nearer less congested areas near Lagos and cheaper alternatives.
If you desire such a large size, just contact Vafiero.
Warehouses Brings compensations to a Community
Warehouses usually create jobs for the surrounding community and its inhabitants as a payback.
- Employment – new jobs for the local community workers.
- Taxes – since a warehouse is the point of sale, it generates tax revenue for the community it is housed in.
- Community improvements – The community will have to support by making some contributions such as improving roads and parks.
How Long Does it Take to Develop a Warehouse?
It can take from 8 months to 2 years to build a standard to a sophisticated warehouse, if no extra work needs to be done. It is preferable to buy your own land as advertised here.
Due to the high rise smuggled goods & poor standards of warehouses in the country. NAFDAC constantly monitors and regulates around 60% of the warehouses. They are the chair, who set the rules and regulations.
Conclusively, the retail segment has dominated and still rising. More land investment opportunities are available to be explored in Lagos state. All you need do is purchase vacant land in a strategic place. Cold Storage warehousing has shown good business potentials for investments.
With increasing demand for standard storage facility is evident. Especially for temperature-controlled products for the agricultural goods, seafood, and pharmaceutical industry by the government and private companies.
This is one of the best land property investments to venture into in Lagos right now.
To find a place to invest in for the future, then click here.