Key Takeways

  • Real estate investment no longer attractive to Nigerians abroad
  • Failing naira rates a major factor
  • Cryptocurrencies emerging as an alternative investment asset

Investing in real estate has always been the de facto mode of investment for Nigerians living abroad. Hence, the mindset of using money gained to build properties like houses and hotels for rent back home.

However, the gains within the real estate industry are no longer as profitable as before. For example, a person that converted $100,000 in 2015 when the rate was 160/$ (16 million) to build his home would struggle to get that same value in 2021.

If the investor decides to put the house up for sale in 2021, he would have to place it for 50 million to recover the $100,000 spent in 2015 due to the current dollar rates. This could be considerably lower than the market value of the house.

This new reality appears to scare many diaspora Nigerians who have sought to diversify their investments from real estate. One area that many have turned to is the Fintech industry which has been growing in recent years.

For example, early investors in popular fintech firm Paystack were able to gain more than 300% of their investment within the span of a few years. Cryptocurrencies have also emerged as an alternative for Nigerians in the diaspora.

The crypto industry has grown from only a few billion dollars to a trillion-dollar industry in less than a decade. Nigerians that invested in popular cryptocurrencies like Bitcoin and Ethereum in early 2020 have made more than 800% on their investments within 12 months.

Cryptocurrencies have also increasingly become a way for Nigerians in diaspora to send remittances to their family back home.

Do you think crypto can replace real estate as the choice investment for Nigerians in diaspora?