A Study of Tenancy Details and Physical Characteristics of Investment Properties in Abuja, Nigeria

N. A. Bello, B. T. Aluko and R. K. Alimi

AfRES from African Real Estate Society (AfRES)

Abstract: This study examined the tenancy details and physical characteristics of property (direct real estate) investment in Abuja, Nigeria to guide investors and other stakeholders in making informed property investment decisions. Aggregate of 2101 investment properties (from portfolio of Estate Surveying Firms (ESFs) were enumerated from the sampled neighborhoods in Abuja, out of which 210 (10%) sample size was randomly selected for this study. However, 136 questionnaires (representing 64.76% response rate) were successfully administered. Data collected were analyzed with frequency, averages, percentage and summation scaling. The results demonstrate that despite the economic recession experienced by Nigeria in 2016, block of flats type of investment property demonstrates occupation sustainability by exhibiting full occupational status than all other types of investment properties. Average outgoing of 18% of gross rent and last rent review rate of 2.76% was observed for the study area. Management fee and repair/maintenance expenses constitute the highest elements of outgoing, while taxes, levies and interest on capital were the least elements of investment property outgoing. Residential property type exhibits high physical characteristics than the pure commercial property types and the detached duplex without boy’s quarter has the highest quality of physical characteristics while block of lock up shops has the least. There was an inverse relationship between land size and building coverage area. The work is limited to tenancy and physical characteristics of investment property; a performance indicator of property investment, but not performance measurement. This indigenous work will enable effective investment planning and property investors’ accessibility to information about the tenancy details and physical characteristics of different types of investment properties in the study area.

Keywords: Direct Real Estate; investment properties; Physical Characteristics; tenancy details (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2018-09-01
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