Real Estate Careers and Challenges in Nigeria

The Industrial Revolution led to a large movement of people from rural areas to cities in Europe, especially in the UK.

Trade groups or guilds formed in the 19th century to represent professionals in estate management.

The Land Surveyor Club was founded in 1843 in London, marking the start of a distinct professional group for surveyors.

The Surveyor Institution was established in 1868 and later became the Royal Institution of Chartered Surveyors (RICS) in 1946, solidifying the profession.

Estate surveying practices were introduced to Nigeria after colonialism, with F.G. Gleave being the first known chartered surveyor to establish a practice in the country.

John Wood Ekpeyong, a Nigerian graduate of the University of London, became the first Nigerian Estate Surveyor and Valuer in 1954.

The University of Nigeria, Enugu campus, introduced Estate Management as a course of study in 1962, with J.A Umeh as the first indigenous academic staff.

The Nigeria Institution of Estate Surveyors and Valuers (NIESV) was established in 1969 as a non-profit professional organization to represent and support estate surveyors in Nigeria.

The property profession in Nigeria is characterized by a limited number of professionals compared to the large number of graduates produced by universities and polytechnics.

Digitalization, while offering benefits, presents challenges in the real estate industry. These include data security concerns, the potential for job displacement, and the direct connection between landlords/sellers and potential tenants/buyers, diminishing the role of agents.

The Nigerian property sector is experiencing challenges due to economic instability, leading to factors like naira devaluation, inflation, and increased costs of energy.

Informality prevails in the Nigerian property sector, impacting processes like land acquisition, building construction, and disposals.

Limited number of professional estate surveyors impacts the market's standardization and ability to address needs effectively.

Cyberattacks and data breaches threaten the security of information in the digital environment.

Automation and AI potentially displace some professionals in the real estate sector.

Landlords and sellers directly connect with tenants and buyers through online platforms, reducing the need for intermediaries like agents.

Informal groups claiming land ownership based on being descendants of the original settlers, often creating obstacles for property development even when legal permits are obtained.

The author's journey into real estate began by studying Estate Management at The Polytechnic Ibadan, Nigeria, setting a solid foundation for his career.

The author prioritized practical experience and chose to serve pupillage in a respected private practice firm over lucrative job offers in other sectors.

The author further developed his skills by pursuing an Advanced Management Programme (AMP) at Lagos Business School (now Pan Atlantic University) and a Master's degree in Housing & Development at the University of Ibadan.

The author's studies emphasized business management, marketing, and research skills with case studies and real-world applications, providing a strong foundation for his future career.

The author's education and networking opportunities at prestigious institutions like Lagos Business School and the University of Ibadan helped him build valuable connections with influential individuals, which were not possible through regular college studies.

The author learned business and public relations skills, ethical standards, and client management techniques, which were crucial for his success in the real estate industry.

The author's career path demonstrates that a strong educational foundation, practical experience, and ongoing professional development are vital for building a successful and rewarding career in real estate.

A situation where an estate agent loses the right to represent a property owner, usually due to the owner's decision to work directly with a tenant or change their plans for the property.

A pre-arranged agreement between an estate agent and a property owner that grants the agent the exclusive right to manage and market the property for a specific period.

The act of endorsing a letter of instruction. This means formally acknowledging and approving a written instruction given by a party.

Compensation or payment received by an estate agent for their services in facilitating a real estate transaction.

A process of verifying a prospective tenant's suitability and financial ability to rent a property.

The practice of offering a property for rental or sale to potential clients.

The act of performing a dedication service, usually a religious ceremony to bless a building.

The act of taking legal action to pursue a claim or enforce a right in a court of law.

The practice of estate surveying and valuation in Nigeria faces various challenges. These include unethical practices, lack of professionalism, and the informal nature of the property market.

Improving skills and training for estate surveyors and valuers is crucial. This includes both practical skills, like market analysis and legal knowledge, as well as soft skills essential for communication and business.

Informal property transactions, often without proper documentation and legal oversight, create significant challenges.

To reduce informality, Nigeria needs a multifaceted approach. This involves strengthening land registration systems, enforcing property laws, and encouraging formal property development.

A centralized databank of concluded property transactions would improve transparency and accuracy in valuations.

The databank would provide a pool of comparable evidence for valuers, preventing valuation differences and improving accuracy.

The issue of omo onile, informal land owners often involved in fraudulent activities, needs to be addressed.

By providing valuers with access to comprehensive transaction data, a databank could help standardize valuations and prevent inconsistencies.

A tenant sublet the "boys' quarters" (likely a smaller, separate living space) for a longer term than their own lease. This was not authorized and caused problems when the original tenant died abroad.

A tenant illegally constructed a brothel on a vacant land behind the property the Agent managed, creating serious legal complications

A tenant who had relocated abroad left a relative in Nigeria without proper agreements for the property. The relative sublet part of the house without authorization from the owner, causing the Agent to face legal problems.

After the lease expired and the tenant was unreachable, the agent discovered the sublet agreement and faced the issue of finding a solution, including dealing with the subtenant and the deceased tenant's family.

The agent had to deal with a situation where the tenant had died abroad, leaving the property vacant and with an unauthorized sublet agreement. The agent had to negotiate with the subtenant and manage the deceased tenant's affairs, including contacting family.

A tenant in a property managed by the agent illegally converted a vacant land at the back into a brothel, prompting legal action and even the agent's arrest.

The agent was arrested by the police due to a complaint from the owner who thought the agent was aware of the illegal construction of the brothel. The agent was released unconditionally.

The agent had to deal with the sublet situation by negotiating with the subtenant and paying for their unexpired rent. The agent used their own practice income to resolve the matter.