A Review of Studies on Real Estate Investment Performance in Nigeria

Abstract

This study has been conducted to review the studies conducted on property investment performance in Nigeria with the aim of providing a clear insight into the trend, authors’ affiliations, performance measurement techniques and the geographical focus of these studies. Published and unpublished research works in this research area were sourced and reviewed. The data and information used were sourced from online databases such as Google, Google Scholar, ScienceDirect, ProQuest, and ResearchGate. Printed journals (local and international), published and unpublished Masters and PhD theses were also among the sources of the data used. Descriptive statistics were used to analyse the authors’ contributions, affiliations, geographical focus and the annual research trend of real estate investment performance in Nigeria and the results reported. The study found that the first study conducted on the performance of real estate investment was Olaleye (2000) followed by Olaleye (2002). Olaleye, A., Oyewole, M. O. and Dabara, D. I. were found to be the most active and leading researchers on this research area with contributory scores of 3.87, 3.61 and 3.21 respectively. On the average, about 2 studies on the subject were carried out annually with focus majorly on the Lagos property market, Southwest Nigeria. The review further revealed that nominal rate of returns, Sharpe index and coefficient of variation were the common performance measurement indices often adopted by majority of the previous authors. This study recommends that collaborative effort should be established among scholars of estate management and practicing estate surveyors and valuers with a view to bridging the gap between theory and practice and boosting property data banking in Nigeria. The geographical scope of real estate investment performance in Nigeria needs to be expanded to adequately cover all the regional property markets.

Assessment of Residential Real Estate Investment Performance in Lafia Metropolis, Nigeria

“…Investment performance analysis is not new because to it has been carried out on investments such as gilts and equities for several decades now. However, its application in the field of real estate investment is still emerging in many developing economies of the world, including Nigeria (Agava et al, 2021). This section provides an understanding of investment performance generally and real estate in particular.…”

“…These earliest studies on investment performance measurement focused solely on pension funds and other financial investment assets excluding real estate. It was not until three decades after when attention was been given to the need for real estate investment performance measurement and analysis (Agava et al, 2021). This setback was attributed majorly to the absence of reliable index of real estate market values at this early development in investment performance measurement techniques (Bain, 1996).…”

“…Thus, this study attempts to answer the question arising from the review regarding what is left undone with a view to expanding the existing literature on real estate investment performance analysis. Agava et al (2021) attempted a classification of previous studies on real estate investment performance into: studies that compared the performances of direct real estate investment on the basis of property types, studies that compared the performances of direct real estate with indirect (securitised) real estate investments and those that compared the performances of real estate investments (direct or indirect) with investment in stocks and shares. The focus of this study is on direct residential real estate investment performance.…”

“…As mentioned earlier, the works of Olaleye (2000) and Bello (2003) were the early documented research efforts on REIP evaluation in Nigeria (Agava et al, 2021). Olaleye (2000) investigated RE portfolio management practice in Nigeria.…”

Problem of Investment Analysis Occasioned by the Uncertainty of Factor Elements in Imo State, Nigeria

“…One main issue faced by estate investors, particularly in Nigeria, is concerned issues of making a sound and informed decision concerning their investment arising from numerous options of investment available for investors to make their choice [28] and recently, scholars on the performance of property investment, whether indirect or direct, have become crucial, particularly now that measures for the performance of estate investment have gained more preference globally with Nigeria inclusive [29]. Uncertainty arises from poor information, and knowledge concerning all information that could be employed in evaluating input factors is specific, leading to value or revenue uncertainty (Yakubu et al, 2022).…”