Examination Of The Role Of Quality Market Research In Commercial Real Estate Investment In Developing Countries (Case Study Of Lagos, Nigeria)

This study sought to evaluate the quality of market research conducted for commercial real estate investment in developing countries (case study of Lagos Nigeria). The objectives of the research are to ascertain the level of application of market research in commercial real estate investment; determine the quality of market research where conducted; establish the factors inhibiting effective market research and to ascertain how market research affects the marketability and profitability of commercial real estate investments. It was hypothesized that there is no significant relationship between the quality of market research and real estate investment performance. Pre-investment advisers/Estate Surveyors and Valuers were taken as the focus population of the study since they provide market research services in the course of undertaking investment appraisals for developers and real estate investors. The quality of market research was assessed by the extent to which they comply with set standards indicated in the literature and the result compared with empirical review of investment/development appraisal reports on twenty projects. From the study, 11.6% of the respondents indicated that the quality of market research conducted is below average, while a greater percentage (51.3%) indicated that the quality of market research conducted is good. However, the empirical review of investment/development reports prepared by investment advisers/Estate Surveyors and Valuers indicated that the quality of market research conducted is low. The study also revealed that there is a weak but positive relationship between the quality of market research and real estate investment performance with a correlation coefficient of 0.240. the study recommended, amongst others, that a standard market research manual or standard pre-investment study manual stipulating the data content of market research should be provided by institutions/professionals in the built environment to ensure standardization and promotion of culture of quality in market research as well as avert loss of investors hard-earned resources in our overall national interest.