An Evaluation Of The Investment Maturity Of Property Markets In Southwestern Nigeria

PURPOSE: Studies on the maturity status of sub-Saharan African property markets are scanty. The absence of such studies appear to have made African property markets such as the Nigerian market unattractive to foreign investors who require market information to assess the viability of proposed investments. This paper explores the maturity status of selected city property markets in Southwestern Nigeria (that is, markets in the capital cities of Lagos, Ibadan and Osogbo), with a view to providing information for enhanced property investment in Africa.DESIGN / METHODS: The study adopted and expanded on property market maturity paradigms suggested by Keogh and D’Arcy (1994), Akinbogun (2012) and Jones Lang LaSalle (2014) to measure the maturity status of the property markets in the Nigerian cities. In achieving this objective, the study sampled players in the markets estate surveyors and valuers, public land administrators and financiers (represented by commercial banks) using questionnaire surveys and structured interviews. The responses were classified by means of a five-point classification scale which expanded on the initial scale developed by Dugeri (2011).FINDINGS: The three property markets were found to exhibit varying maturity characteristics (with weighted mean scores of 3.07, 2.71, 2.51 respectively), representing emerging and immature stages of evolution on the maturity path.PRACTICAL IMPLICATIONS: The study concluded that the Ibadan and Osogbo markets require substantial remodeling to make them attractive to international investorsORIGINALITY/VALUE: The value of the paper is in providing much needed information for enhanced property investment in Africa