It’s no longer news that Nigerians in the diaspora make up a good percentage of real estate investors in Asaba, Nigeria. Do you know why? The reasons are not far-fetched. For one, there’s the advantage of available resources. In addition, there’s a deep understanding of the importance of investing in real estate.
And while you think everyone is rushing to buy lands in Abuja and Lagos, you may be far from the truth. Asaba’s real estate market is the real deal now. Every day, more and more people show interest in what Asaba has to offer. They demonstrate this by purchasing lands and houses in remarkable volumes.
What’s even better is that the diasporan community is leading in this aspect. The question is, what exactly are Nigerians in the diaspora seeing in the Asaba real estate market? Let’s find out.
Why Are Nigerians in the Diaspora Turning to Asaba for Real Estate Investment?
It’s simple—Asaba is fast becoming a thriving hub for residential and commercial real estate. As the capital of Delta State, this city is catching the eye of smart investors because of its unique location and growing economy.
Besides these, there are opportunities for future appreciation in property value for lands and properties in the city. While Lagos and Abuja have become saturated and more expensive, Asaba offers a fresh slate of untapped potential. Let’s look at what it provides in more detail.
1. Strategic Location
You know what they say about location in real estate; “location is king.” This is especially true for Asaba real estate. The situation here is that Asaba, the capital of Delta State, sits conveniently on the western bank of the Niger River, directly across from Onitsha in Anambra State, one of Nigeria’s biggest commercial hubs.
Because of this closeness to Onitsha and other southeastern commercial hubs like Nnewi, it has made it an attractive location for people who want to live in a peaceful city but still conduct business in busy areas. For Nigerians in the diaspora, this is a dream come true. They can purchase properties in Asaba as future residences or even for investment purposes while they continue their lives abroad.
Moreover, Asaba is connected by road and air, making travel both within Nigeria and internationally more convenient. The Asaba International Airport plays an important role in this, offering domestic flights and plans to expand its international services.
For diasporan investors who regularly shuttle between Nigeria and their countries of residence, this is a huge advantage. Ease of accessibility means they can keep an eye on their properties without many issues. This is immediately an attractive factor for diasporan investors. Even for investors in Nigeria, this is enough reason to invest in Asaba.
2. Rapid Urbanization and Development
Have you been to Asaba lately? If you haven’t, it’s time to put it on your travel list. This is because this city is soon catching up with Abuja and Lagos in terms of urban development. It’s not totally there yet. However, the Asaba of today is undergoing rapid urbanization. This is one of the reasons Nigerians in the diaspora are rushing in droves to invest in the Asaba real estate market.
Over the last decade, the city has witnessed impressive growth, with new infrastructure projects, residential estates, and commercial hubs springing up across the region. The Delta State government has been actively working on projects that boost Asaba’s appeal. These projects the government has been working on include road expansions, healthcare facilities, and educational institutions.
Add to the fact that Delta State’s economy is growing at a steady rate, Asaba is quickly becoming a central point for commerce and industry in the region. For Nigerians abroad looking to invest in real estate, the growth potential in Asaba is clear.
With urbanization comes the appreciation of property values. What might be a moderately priced property today could double or triple in value within a few years, providing excellent returns on investment.
Also Read:
- Top 10 Fast-Developing Cities in Nigeria for Real Estate Investment
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- How to Ensure That the Delta State Government Does Not Demolish Your House in Asaba
3. The Growing Appeal of Asaba
Yes, this is a real thing. People troop to where things are working, which is why a lot of people are ‘japa-ing’. In this case, they are moving southward – to Asaba. The thing is this, Asaba is not just another small town. It’s the capital of Delta State, which makes it an administrative and economic center.
It’s a city that’s growing both in population and in infrastructure. Based on these, the city is seeing massive improvements in its road networks, access to healthcare, education facilities, and even recreational parks.
All of this makes Asaba appealing for people looking to invest in homes, hotels, and even short-let apartments, especially for diasporans who are looking for long-term investment opportunities.
This growing infrastructure is backed by the Delta State government’s investment drive. With several projects to enhance the city’s development, the state government is positioning Asaba as the go-to location for investment in the South-South region. For diasporans, these developments create a feeling of security, knowing that their investments are in a region where future growth is inevitable.
4. Affordable Real Estate Prices
Everyone can agree that compared to the inflated property prices in Lagos and Abuja, Asaba offers a much more affordable entry point into the Nigerian real estate market. A plot of land in a prime location in Asaba can be bought for anywhere between ₦3 million to ₦10 million, depending on the exact location. In comparison, plots of land in Lagos or Abuja can range from ₦20 million to ₦50 million or more.
The affordability factor allows diasporans to invest in larger parcels of land or multiple properties, something that’s becoming more difficult in more saturated markets like Lagos. The lower entry point also means that investors can expect better returns on their investments in the long term as Asaba continues to grow.
Even the cost of developing properties in Asaba is relatively lower. Labor costs, building materials, and general expenses are cheaper in Asaba than in major metropolitan cities like Lagos. Of course, this does not mean that this lower cost means a compromise in the quality of the properties. Many luxurious homes built here meet international standards.
As a result, many diasporan investors are taking advantage of these favorable conditions to build high-quality homes, knowing that they can either live in them or rent them out to local or foreign tenants.
4. High Rental Yield
Another factor making Asaba attractive to diasporans is the booming rental market. The city has seen an influx of people from surrounding areas looking for better living conditions and access to jobs. Asaba’s proximity to Onitsha also makes it a desirable location for business people and traders. This is a smart way to live near commercial operations without the high cost of living in Anambra State.
As an increasing number of professionals and civil servants relocate to Asaba, there’s a high demand for rental properties, particularly in gated estates and modern apartment complexes. And trust our investors to cash in on this. Investors in the diaspora are taking advantage of this, buying properties specifically for rental income.
The result is that the typical annual rent for a two-bedroom flat in Asaba ranges from ₦500,000 to ₦1 million. In most neighborhoods, it’s way more than this. This is a solid return on investment given the relatively low cost of purchasing properties. This steady demand for rentals also opens the door for short-let apartments, an increasingly popular investment strategy.
Many diasporans are converting their homes into vacation-style rentals, targeting business travelers and tourists who visit Asaba for events or business purposes. This steady influx of people has driven up the demand for rental properties. For diasporan investors, this means a steady stream of passive income for them. This is particularly true if they invest in strategically located properties like those near government offices, universities, or the airport. A good example is our Westlands Residence which is just a 15-minute drive away from the airport. Please, call +2348132794689 or send a WhatsApp message to +2348132794689. if you would like to come for site inspection.
5. Government Policies Favorable to Investors
Everything rises and falls on leadership. And in the aspect of real estate, it’s safe to say that the Delta State government’s favorable policies toward real estate development and investment are visible. The state has simplified its processes for land acquisition and property development, making it easier for investors, including those in the diaspora, to acquire properties.
Additionally, the government has launched initiatives aimed at improving infrastructure and boosting real estate development in the state. For instance, the ongoing development of the Asaba Waterfront Project is set to transform the city into a major tourist and commercial hub, which will undoubtedly drive up property values in the surrounding areas.
Such forward-looking projects are key reasons why diasporan Nigerians see the long-term potential of investing in Asaba. This is a welcome development as recent surveys show that diaspora remittances contributed approximately $20 billion to Nigeria in 2023 alone.
A significant chunk of that much has undoubtedly found its way into the real estate sector, and of course into Asaba’s real estate market. This influx of foreign capital is boosting the economy, creating jobs, and fostering even more growth opportunities. Interestingly, the Asaba real estate sector is not left behind.
Challenges and Considerations to Investing in Asaba Real Estate
To balance things up, we need to point out that no real estate market is without its challenges. So, although Asaba offers great potential, investors must also handle the typical issues associated with Nigerian real estate. These include proper land documentation, avoiding local land grabbers, and ensuring the land is not under government acquisition.
But diasporans often hire trusted local agents or legal representatives to help mitigate these risks. Anyone interested in buying genuine lands must adopt this method too. In addition, you must also buy from reputable real estate companies as well, to get value for your money.
Also Read:
- The Fastest Developing Areas in Asaba for Real Estate Investment
- 7 Questions You Should Ask Before Buying a Property in Asaba
- The Impact of Nollywood on the Real Estate Industry in Asaba
Forget the Popular Locations – Make the Most From Asaba Real Estate
The bottom line is that the Asaba real estate market is no longer a hidden gem. Nigerians in the diaspora are increasingly recognizing the potential growth of the Asaba real estate market, affordability, and return on investment. And you should too.
If you’re looking to diversify your real estate portfolios or secure a property back home without the inflated prices of Lagos or Abuja, Asaba is undoubtedly the place to be. And with the growing interest from the diaspora community, it’s clear that Asaba’s real estate market is on the path to even greater heights.
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