NEIGHBOURHOOD INFRASTRUCTURE CONDITIONS: INDICATOR FOR IDEAL RESIDENTIAL PROPERTY INVESTMENT RETURNS IN ABUJA, NIGERIA
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Date
2020-03
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Faculty of Environmental Sciences, Kaduna State University, Kafancha Campus, Nigeria
Abstract
Functional neighbourhood infrastructure creates the platform for real estate investment market to flourish and also enhances returns on propertyinvestment (both rental and capital appreciation).This study focused on the assessment of the effect of neighbourhood infrastructure conditions as indicator for ideal residential property investment returns in Abuja. The study adopted stratified random sampling technique and structured survey questionnaires were administered to get relevant data from practicing estate surveyors and valuers and residents of selected neighbourhoods in Abuja, Nigeria. Out of 1,302 questionnaires administered in the selected neighbourhoods, in Abuja, 718 were duly completed, returned and retained for the analysis. Descriptive Mean method of data analysis was employed, coefficient of variation and Spearman’s Rank-Order Correlation Model were used to compare the property investment return in the selected areas of Abuja. It was discovered that,the infrastructure condition indices in Wuse II and Maitama is higher than ideal condition index (Benchmark), ranges between 82%-92% and 81%-94% when compared with average international standard at 60%, while infrastructure conditions in Kubwa and Lugbe found a bit below the average international standard condition. Kubwa and Lugbe property market of Abuja performed better than Maitama and Wuse on the basis of risk-return ratio analysis, of which Lugbe and Kubwa revealed the most consistent property market performance while Maitama and Wuse residential market showed high level market volatility due to risky nature of the market.Kubwa and Lugbe markets showed a stable market at minimum risk ranges between 8%-36%.The study concluded that, infrastructure have significant impact on residential property investment returns and this implies that, infrastructure development should be taken very seriously in order to achieve sound real estate investment decision making
Residential property, Investment returns, Infrastructure conditions, Neighbourhood, Abuja,
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Keywords
Keywords: Residential property, Investment returns, Infrastructure conditions, Neighbourhood, Abuja