An Evaluation of the Investment Maturity of Property Markets in Southwestern Nigeria

Abstract

Purpose: Studies on the maturity status of sub-Saharan African property markets are scanty. The absence of such studies appear to have made African property markets-such as the Nigerian market-unattractive to foreign investors who require market information to assess the viability of proposed investments. This paper explores the maturity status of selected city property markets in Southwestern Nigeria (that is, markets in the capital cities of Lagos, Ibadan and Osogbo), with a view to providing information for enhanced property investment in Africa. Design/Methods: The study adopted and expanded on property market maturity paradigms suggested by Keogh and D'Arcy (1994), Akinbogun (2012) and Jones Lang LaSalle (2014) to measure the maturity status of the property markets in the Nigerian cities. In achieving this objective, the study sampled players in the markets-estate surveyors and valuers, public land administrators and financiers (represented by commercial banks), using questionnaire surveys and structured interviews. The responses were classified by means of a five-point classification scale which expanded on the initial scale developed by Dugeri (2011). Findings: The three property markets were found to exhibit varying maturity characteristics (with weighted mean scores of 3.07, 2.71, 2.51 respectively), representing emerging, emerging and immature stages of evolution on the maturity path. Practi al Implications: The study concluded that the Ibadan and Osogbo markets require substantial remodeling to make them attractive to international investors Originality/Value: The value of the paper is in providing much needed information for enhanced property investment in Africa

A Review of the Property Data Challenge in Nigeria

“…Various deficiencies of Nigeria's property market have contributed to its categorisation as an immature sector by researchers such as Akinbogun and Dunse (2014) and Clement et al (2016). One of these deficiencies is a dearth of data.…”

Market Data Limitations in the Application of Income Approach to Property Valuations in Nigeria: Practitioners' Perspectives

“…However, with the relatively less-than-transparent nature of many African property markets like Nigeria (Clement, Ogunba, and Dugeri, 2016;Thontteh, 2013;Dugeri, 2011), it has been established that obtaining and accessing dependable real estate data for valuations is a difficult undertaking. The problem of lack of data for valuations has been the focus of many of the available studies in that regard (Ashaolu and Olaniran, 2016;Baffour-Awuah, et al, 2017;Mahama and Antwi, 2006;Onwuanyi, 2020).…”

An investigation of factors influencing maturity levels of property market in southwestern Nigeria

“…The housing stock deficit and its affordability on the African continent has caused surge in house rent and property prices in various cities and towns thereby making Africa one of the hottest and most investment rewarding zone for real estate globally. However, the globalization of real estate has accordingly resulted in an upsurge in the flow of foreign direct investment (FDI) to emerging economies particularly in sub-Saharan Africa (UNCTAD's Bilateral FDI Statistics, 2014; Clement et al ., 2016). The flow of FDI in the continent is not enough for sustained growth and development because most countries in the continent have population growth rate in excess of 2% every year (Africa Population, 2020).…”

“…The internationalization of real estate investment has reinforced the need to assess the level of the property market maturity. In quest to provide the information, studies have been carried out on property market maturity such as (Keogh and D'Arcy, 1994; Armitage, 1996; Lee, 2001; Chin and Dent, 2005; Dugeri, 2011; Akinbogun, 2012, 2014; Thontteh, 2013; Cohen and Galiniene, 2014; Clement et al ., 2016; Olapade et al ., 2018; Adebara and Olaleye, 2019). These researchers emphasized the need to establish the status of the property markets' maturity.…”