Wahab, Muktar Babatunde ; Durosinmi, Wasiu Ayobami ; Mustapha, Adamu ; Olatunji, I.A ; Ajayi, Michael Tolu Adeyemi (2016-05-10)


Housing investment performance is an examination of total return from an invested capital in real estate market, vis-à-vis an associated market risk. The incessant failure of real estate investment is attributed to the lack of feasibility and viability forecast on future of investment and poor analysis of past and present market situations. The objective of the paper is to examine the performance of housing investment return with a view to determining the quantum of risk to be taken to earn an expected return and to establish the most secured investment market. The literature has revealed that the failure of most investment is due to poor analysis of economic and market conditions. The research concentrates on the analysis of Abuja property investment market with view to examining the returns from different real estate sub-markets. The research employed descriptive analysis (standard deviation, coefficient of variation and sharpe ratio) and ANOVA to analyze the data collected through systematic method of sampling. The result of analysis of variance showed a statistically significant difference in returns on investment, at p-value of 0.00013 less than 0.05 level of significant. The results of residential investment performance across three locations in Abuja showed high volatility in Maitama and Wuse residential submarkets at 4.81% and 4.04% respectively, and Gwarinpa market is less volatile at 1.41%. Gwarinpa market showed a stable return on the investment at 6.7% and 6.6% for arithmetic and geometric means respectively. Therefore the research concludes that Gwarinpa residential market exhibited steady and stable return on the basis of average returns, less volatile and performed better on the basis of risk-to-reward ratio than any other submarket at 0.21. Maitama submarket is described as the most risky and volatile submarket at 4.8% standard deviation.