EXAMINATION OF HOUSING INVESTMENT PERFORMANCE IN ABUJA, NIGERIA.
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Date
2016-05-10
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Publisher
School of Environmental Technology, Federal University of Technology Minna, Niger State, Nigeria.
Abstract
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.
Description
Great
Keywords
residential, investment performance, sharpe ratio