An Investigation of Factors Influencing Maturity Levels of Property Market in Southwestern Nigeria

Purpose: The study investigated the factors influencing maturity levels in Nigeria property market particularly Southwestern Nigeria in Sub Saharan Africa.Design/Methodology: The study distributed questionnaire to a variety of stakeholders (estate surveyors and valuers, lending institutions and government ministries) in first, second and third tier cites of Nigeria. These stakeholders were presented a list of 41 variables and asked to rank them on a seven-point likert scale. Relative importance indices and factor analysis was employed in analyzing the variables.Findings: The variables identified as the most responsible for the maturity levels (those with the highest weighted mean score of 6.52, 6.35 and 6.31) included government policy interest rate, safety of property right/titles and insufficient property market information. The variables were further grouped by means of factor analysis into six factors namely finance, property rights registration, professionalism, investor friendliness, information and economic factors.Practical Implications: The study concluded that factors responsible for the slower maturity levels included government policy on interest rate, safety of property rights and insufficient property market information which require remodeling to enhance their maturity levels and make them attractive to international investors.Originality/Value: The value of the paper is in providing much needed information for enhanced property investment in Africa.