How Tertiary Institutions Can Aid Real Estate Development In Nigeria
Tertiary education is referred to as the third stage, third level and post secondary education is the education level following the completion of a school providing a secondary education. Tertiary institutions include colleges of education, universities, institutes of technology and polytechnics are the main institutions that provide tertiary education.
Nigeria has populations of 173.6 million and over 19.3% of this population are between the ages of 15-24 years and half of 30.5% are between the ages of 25-35 years which happens to be the age range of students in the tertiary institutions.
Nigeria has over 150 tertiary institutions catering for the academic need of the youths. Most institutions have accommodations within the various school campuses which are basically common room hostel designs that allow two or more people live in a room with or without private baths and kitchen. So how can tertiary institutions create an opportunity to invest in real estate?
The areas surrounding the public universities in Nigeria are becoming a place to invest in real estate because there will always be a market for properties around the campus.
For example, Ambrose Alli University, formal Edo State University is situated in the town of Ekpoma, Esan West of Edo State. Ekpoma just as most parts of Edo state is slowly waking up to investment opportunities thanks to the high rate of interest shown in education in the country. Before now, the town was known for its yam, pineapple and oil palm production. But at present places like Iruepene, Ujuolen, Town, and Market square up to Emado are all experiencing a boost in terms of investments.
The areas around Idumebo and Iruepene are now called 'the student's village' as single rooms, self contain rooms and mini flats are a common sight in these areas and are largely populated by students. Houses in this area goes for a much as 60,000 a year for the single room self contain and 80,000 and above for the mini flats.
Ujuolen also has big hostels of self contain rooms such as Mary the queen and haven villa. The attractive feature of these hostels include borehole water as the town has no pipe borne water and high security fences to protect the students. These areas also allow the students save cost on transportation. These hostels cost as much as 80,000 for a year. Single room apartments in this area can go for as low as 40,000 per year.
Moving farther away, Emado is another area with a large concentration of students. Houses in this area and all around market square costs just over 50,000 for single room apartments and mini flats could cost as much as 150,000 a year. This is because the area is not only populated by students; it also houses the people who work around the university and in town. The owners of these properties prefer to rent properties to workers who can pay for two years than students who usually pay yearly.
Although hotels and relaxation spots are springing up, the real investment in these areas remain student hostels. This is due to factors like very high renting out rates which can be attributed to the increase in the population of students, quick returns on investments because students pay yearly and such contracts ends when the year ends so there are no rents owned.
As a solution to increase investment and development in rural areas where tertiary institutions are situated, building of affordable and well equipped student hostels should be encouraged. This not only guarantees enough accommodation for the students, it also increases the revenue generated by that area and provides jobs for the indigenes of the town through construction of the hostels and maintenance of the properties.