AN EVALUATION OF FACTORS DRIVING PROPERTY INVESTMENT DECISIONS BY PRIVATE DEVELOPERS IN ABUJA
AN EVALUATION OF FACTORS DRIVING PROPERTY INVESTMENT DECISIONS BY PRIVATE DEVELOPERS IN ABUJA
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Date
2016-11
Authors
MUHAMMAD, ABUBAKAR
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Abstract
This study investigates the factors driving property investment decisions by private
developers in Abuja. Theimpact of the economic activities and surging population influx in
areas with high population growth and urbanization suffer from housing or property deficit
due to unassessablity of driving factors that influence private investors‟ decision into
property. The aim of the study is to assess the factors driving private developers‟
investment decisions with a view to enhancing property development activities in Abuja.
The study investigated the reasons why private developers choose to invest in property,the
economic and non economic and property related factors that impact on property
investment decisions and also examined the property types developed by private
developers in Abuja. It further examinedconstraints to property investment. The study
population of Real Estate Developers Association of Nigeria (REDAN) in Abuja is 356;
quantitative research was adopted for the study. The study made use of well structured
questionnaire to collect expert opinion on the issue of interest. The data collected were
analysed using the Relative Importance Index (RII) and mean. The study established that
capital gain; long term wealth creation and financial security are the reasons why private
investors choose to invest in property which were ranked first with Relative Importance
Index (RII) of 0.87. The study also established that capital market (equity and debt) is the
most influential economic factor that drives property investment (RII= 0.87). Performance
of the building construction sector (RII=0.84) is the most significant non economic driver
of investment into property. It is also found that mortgage repayment is the major
constraint to property investment (RII=0.86). The study concludes that financial security,
capital gain, long term wealth creationare thereasons why private investors choose to invest
in property. It is also concludedthat capital market and performance of the building
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construction sector are the major economic and non economic factors driving investment
decision in property respectively .It is recommended that property investors should
consider attributes likes workmanship quality, location dimension of land property
category (detached, semi-detached) and neighborhood attractiveness significantly affect
property values reason being that the value of a property is the key as properties with such
attributes are likely to have their value period last longer than the properties with no such
attributes.
Description
A DISSERTATION SUBMITTED TO THE SCHOOL OF POSTGRADUATE
STUDIES, AHMADU BELLO UNIVERSITY, ZARIA
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF A
MASTER DEGREE IN CONSTRUCTION MANAGEMENT
DEPARTMENT OF BUILDING,
FACULTY OF ENVIRONMENTAL DESIGN
AHMADU BELLO UNIVERSITY, ZARIA
NIGERIA
Keywords
EVALUATION OF FACTORS,, DRIVING PROPERTY INVESTMENT DECISIONS,, PRIVATE DEVELOPERS,, ABUJA