REAL ESTATE INVESTMENT AND ITS ASSOCIATED CHALLENGES IN NIGERIA


REAL ESTATE INVESTMENT AND ITS ASSOCIATED CHALLENGES IN NIGERIA

ABSTRACT

The study provides an overview of real estate investment in Nigeria, the study has the following objectives,To examine the challenges associated with real estate investment in Nigeria, To identify the way forward for real estate in Nigeria.Concerning methodology for this study, data was obtained from primary source that is questionnaire. The questionnaire was structured in a five-like scale measuring attitude of Strongly Agreed, Agreed, Undecided, Disagree and Strongly Disagreed. In analyzing the data collected for the purpose of carrying out this research, the statistical tool known as the chi- square testwas used. The use of sample percentage was also employed. Tables were used in presenting the data for the purpose of the simplicity and clarity. The sample size of this study consists of Fifty (50) respondents. Out of the population, 50 personswere selected using the simple random sampling (srs) technique. Findings from the study revealed that; real estate investment is very lucrative in Nigeria, there are challenges to real estate investment in Nigeria, real estate investment is risky in Nigeria and real estate investment can be made more attractive to investors.  

This study will educate the general public on the benefit of real estate investment and its associated challenges which will form the basis for guidance in decision making.

TABLE OF CONTENTS

Title Page - - - - - - - - - i

Approval Page - - - - - - - - ii

Declaration - - - - - - - - iii

Dedication - - - - - - - - - iv

Acknowledgement - - - - - - - v

Abstract - - - - - - - - - vi

Table of Contents - - - - - - - vii

CHAPTER ONE – INTRODUCTION

1.1Background of the Study-----

1.2Statement of General Problem----

1.3Objective of the Study------

1.4Research Questions------

1.5    Hypothesis   -      -      -      -      -      -      -        -        -        

1.6Significance of the Study-----

1.7Scope of the Study------

1.8Definition of Terms------

CHAPTER TWO – REVIEW OF RELATED LITERATURE

2.1Introduction-------

2.2 Concept of real estate investment in Nigeria-  -

2.3 Challenges of real estate in Nigeria - - -

2.4 Residential building (real estate) practice in Nigeria-

2.4.1 Globalization -    - - -  - - -    - - -

2.4.2 Threats and Opportunities of Globalization to Building Practice---   ---     ---      -      -

CHAPTER THREE – RESEARCH METHODOLOGY

3.1 Introduction - - - - - - - 32

3.2 Research Design - - - - - - 32

3.3 Area of the Study - - - - - - 32

3.4 Population of Study - - - - - - 33

3.5 Sample size and Sampling Techniques - - - 33

3.6 Instrument for Data Collection - - - - 33

3.7 Validity of the Instrument - - - - - 33

3.8 Reliability of the Instrument - - - - 34

3.9 Method of Data Collection - - - - - 34

3.10 Method of Data Analysis - - - - - 34

CHAPTER FOUR – DATA PRESENTATION AND ANALYSIS

4.0 Introduction - - - - - - - 36

4.1 Data Presentation and Analysis - - - - 36

4.2 Characteristics of the Respondents - - - 36

4.3 Data Analysis - - - - - - - 39

4.4 Testing Hypothesis - - - - - - 46

4.5 Summary of Findings - - - - - - 51

4.6 Discussion of Findings - - - - - 52

CHAPTER FIVE – SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 Introduction - - - - - - - 54

5.1 Summary - - - - - - - - 54

5.2 Conclusion - - - - - - - - 57

5.3 Recommendations - - - - - - 58

References --------61

Appendix - - - - - - - - 62

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Real estate has continued to play a significant role in man’s evolution. It is not acoincidence that food, shelter and clothing believed to be the three essentialsthat sustain mankind, also have some linkage to land. Food grows out of landwhile shelter is affixed to it, and man’s clothing is made largely from what growsout of land. Indeed, whether in ancient times or today’s modern system, landconstitutes a significant index for man’s wealth, and as economic activities haveassumed more sophistication over time, land has continued to play a central rolein their development (Lewis , 1994). There is hardly any business venture that does not requireto be supported by some form of real estate: from the small business thatrequires real estate as offices from where its business can be organized, to themajor venture that needs it for its factory. 

Consequently, through some very robust and well thought out land policiescomprehensively address challenges that are encounter in the real estate sector.This is not exactly the situation here in Nigeria and the result is that there is amyriad of problems in the real estate sector (Adewale, 2000). In the course of this study, the researcher will provide an overview of real estate investments in Nigeria and its associated challenges.

Real estate investment is intrinsically connected to the economicdevelopment and well being of any nation, thereby necessitating someintervention by prudent governments. Such interventions vary in degrees,depending on the nation. In Nigeria, individual could rarely lay claim to any part of it asowner and therefore could not alienate it without the consent of the head. 

Proper financing is all-important to successfulproperty/real estate investment and development. Variousforms of finance on varying terms from diverseinvesting agencies are available to the property/real estate market. The principal field where various formsof investment finance are employed is that ofdevelopment where every loan has to be speciallytailored for an individual scheme and theparticular stages within the scheme.Since real estate and property development in particularinvolves huge capital expenditure, finance istherefore an essential input, the nature of whichis to provide capital to enable the enterpriseoperate commercially (Ratcliff, 1999). The cost and availabilityof finance for real estate development caninfluence the viability of such project. It is necessary to examine the nature of real estate investment in Nigeria with a view of finding solutions to the associated challenges.

1.2 STATEMENT OF THE PROBLEM

In recent times, research on real estate investment has been on the front burner has it is the major source of housing for man. In the hierarchy of man’s needs, housing hasbeen ranked second and as a result of this; housingprovision has become a paramount cornerstone ofthe policies of various governments both atfederal and state levels since independence inNigeria. The consequences of the rapid rate ofurbanization are most visible in the rapiddeterioration of urban housing resulting in urbanhousing poverty especially as there is noproportionate increase in the number of housingstocks.

During the period of economic boom in the 1970s in Nigeria, there was surplus capital, theeconomic climate then was favorable for thedevelopment of real estate and the prospect ofgain was over blown and so were the rate ofdevelopment. Due to the recent drop in the prices of crude oil world wide and corruption, government has not been able to invest in real estate. Overpopulation and urbanization has led to massive increase in property development.

Financial houses readilyobliged developers’ loans, as they perceivedminimum risks.

Since real estate developmentrequires huge capital outlay, there isalways the need for real estate developer to sourcefor fund. However, this study will examine the scope of real estate in Nigeria and its associated challenges with a view of making useful suggestions on the way forward for real estate in Nigeria.

1.3 OBJECTIVES OF THE STUDY

The following are the objectives of this study:

1. To provide an overview of real estate investment in Nigeria.

2. To examine the challenges associated with real estate investment in Nigeria.

3. To identify the way forward for real estate in Nigeria.

1.4 RESEARCH QUESTIONS

1. What is the level of real estate investment in Nigeria?

2. What are the challenges associated with real estate investment in Nigeria?

3. What is the way forward for real estate in Nigeria?

1.5 HYPOTHESIS

HO: Real estate investment has no challenges in Nigeria.

HA: Real estate investment has several challenges in Nigeria.

1.6 SIGNIFICANCE OF THE STUDY

The following are the significance of this study:

1. The findings from this study will educate the general public on the benefit of real estate investment and its associated challenges which will form the basis for guidance in decision making.

2. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

1.7 SCOPE/LIMITATIONS OF THE STUDY

This study on real estate investment and its associated challenges in Nigeria will cover the extent of real estate investment in Nigeria looking at the factors that has facilitated or hindered it. It will also cover the challenges associated with real estate investment in Nigeria.

LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

Investment: an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.

Real estate: property consisting of land or buildings.

REFERENCES

Adewale, J.R. 2000: Real Estate Investment Analysis. Lexington Books.

Lewis, M.G. (1994): When Real Estate Becomes Big Business:Mergers, Acquisitions and Joint Ventures. CahnersPublishing.

Ratcliff, R.U. (1999): Real Estate Analysis. McGraw Hill, NewYork.

.

REAL ESTATE INVESTMENT AND ITS ASSOCIATED CHALLENGES IN NIGERIA



TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.ORG

Researchwap.org is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.org guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.org is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.org" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.