The Role of Effective Market Research in Sustainable Commercial Real Estate Investment Decisions in Developing Economies

Joseph Nworah

AfRES from African Real Estate Society (AfRES)

Abstract: Purpose: Positioning the commercial real estate sector as alternative and complementary foreign exchange earner will not only help to relieve the stress on Nigeria’s oil sector, but also support diversification in the economy. This, however, requires effective and efficient conduct of quality market research which seems to be lacking in the study area and in developing economies generally. The aim of this study was to examine the quality of market research report being conducted for commercial real estate investment to ascertain whether same is in line with international best practices and in achieving this, several objectives were set. Design/Methodology: The study area is Lagos Metropolis. Cross-sectional survey research design was applied. Data were screened, coded, and analysed using the Statistical Package for the Social Sciences (SPSS) version 23.0. Results were presented using descriptive statistics. Pearson Product Moment Correlation and Multiple Regression Analysis were used to test the stated null hypothesis at 0.05 level of significance.Findings: Results from the study shows as follows: that the cost of research (X = 4.313.0) is the most factor militating against conducting effective market research; market research influences the marketability of the investment by increasing financial performance (X = 4.03 > 3.00); the quality of market research is positively related to real estate investment decision as evidenced with a yield of the calculated “r” (r – cal. = 0.645; p=0.00

Keywords: commercial real estate; Developing Economies; Investment decisions; Market Research; Pre-investment studies (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2021-09-01
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Persistent link: https://EconPapers.repec.org/RePEc:afr:wpaper:2021-014

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