Appraisal of the Performance of Foreign Direct Investment in Commercial Real Estate in Nigeria from 2006 - 2017
Faculty: Environmental Sciences
Department: Estate Management
Obi, N. E.
Egolum, C. C.
Literature abounds on the performance of Foreign Direct Investments (FDIs) in banking, telecommunication and oil and gas in Nigeria. However, the performance of FDI in commercial real estate in Nigeria when compared to international benchmark figures is yet to be established and documented in literature. This aim of this work is to appraise the performance of FDI in commercial real estate in Nigeria from 2006 to 2017 in a bid to empirically assist foreign direct investors’ decisions on investing in the Nigerian commercial real estate sector. The objectives are to; ascertain and compare yield and capital growth rate of foreign direct investments in commercial real estate in Nigeria with international benchmark; examine how FDI tax responsibilities in Nigeria compare with the global benchmark rate, and the effect of ownership structure risk on sustainability strategies of foreign commercial real estate portfolios in the study area. The study adopted the survey approach. Primary data were collected using structured questionnaire and interview. The study is based on selected major foreign controlled commercial real estates in Lagos and Abuja. The study adopted the Jones Lang LaSalle benchmark settings for commercial real estate performance indicator due to its empiricism from an international perspective where yield is 5.7%, capital growth is 7% and rental growth is 5.5%. Data were collected on rental values, capital values, tax responsibilities and effect of ownership structure risk. Tables and percentages were used to present and analyse the data collected. T-test and Pearson Product Moment Correlation Coefficient were used to test the hypotheses. The study showed a yield of 4%, (t = 6.364; p < 0.05) and a capital growth rate of 21%, (t = 1.592; p > 0.05). There was no negative variation in the of FDI tax responsibilities in Nigeria and international benchmark rate cap of 30% (t = .8666; p > 0.05); Ownership structure risk has a significant effect on sustainability strategies of foreign direct commercial real estate investment in Nigeria (r = .867; p < 0.05).The results are consistent with the World Culture Theory of Globalisation and FDI. The yield of 4%, capital growth of 21% equal tax responsibilities and absorptive effect of ownership structure risk indicates a satisfactory performance. The study recommends that property managers should practice tenant mix and flexible leases and spaces. Government should implement investor’s friendly land and fiscal policies to improve FDIs.
Analysis Of Urban Land Value Taxation As A Tool For Sustainable Land-use And Development In Anambra State, Nigeria
Children’s Edutainment And Exhibition Centre, Awka (using Architecture To Enhance Children Education With Entertainment)
Environmental And Economic Effects Of Abakaliki Rice Mill Company Ltd And Its Health Implications On Amagu Community
Modeling And Mapping Of Landcover And Landuse Changes In Kaduna, Nigeria Using Cellular Automata And Multiple Logistic Regression
Examination Of The Spatial Characteristics Of Urban Heat Island In Warri Metropolis, Delta State, Nigeria
Appraisal Of The Impact Of Facility Management On Service Delivery Of Selected Seaports In South South, Nigeria
Development Of A Framework For Building Information Modeling (bim) In Federal Universities Of South West, Nigeria.