Infrastructure Condition Model as a Measure of Property Investment Performance in Ilorin; The Contemporary Approach
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Date
2022-03
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Faculty of Engineering and Environmental Sciences, Osun State University, Osogbo, Nigeria.
Abstract
Infrastructure stands out as one of the indicators of an ideal urban economic
development and its role creates attraction for all forms of investments including real estate
investment. This study examined the infrastructure condition model; which serves as a measure of
property investment returns in Ilorin; the Kwara State capital. The study employed an exploratory
research design. The sample frame was 1,228 and a model was used given 984 as sample size, and
these questionnaires were administered through stratified sampling technique and only 664
questionnaires were completed and returned, representing 67% of the total sample size. The study
utilised both descriptive and inferential statistical methods of data analysis. The result of descriptive
analysis of the performance of property investment revealed that a comparable average return
across the study areas in Ilorin differed; ranging from 10% to 25%. The result of the infrastructure
condition index developed through the scoring analysis based on descriptive modelling revealed a
relative condition index of between 60% and 61% in Ilorin. The result of an inferential method
using correlation to establish the relationship between infrastructure condition index and property
investment return revealed that 7(seven) infrastructure maintained perfect significant correlation
with property investment performance at p-value less than 0.05 level of significance. The result of
regression modelling revealed that 60.4% variation in property performance is explained by seven
infrastructures. Therefore, the study concluded that the performance of property investment is
impressive in the areas where there is a frequent market transaction with better infrastructure
conditions which is strongly influenced by constant potable water with a correct system of road
networks, security, drainage system and streetlight. The study recommends that real estate investors
wishing to embark on real estate investment projects should make it a point of duty to be
conversant with the functionality of infrastructure in human sustainability and real estate
investment growth.
Keywords: Infrastructure, Investment performance, Neighbourhood, Property investment,
Property Market, Returns.
Description
Keywords
Infrastructure, Investment performance, Neighbourhood, Property investment, Property market, Returns