ANALYSIS OF UNIQUENESS OF AND RETURNS ON DIRECT REAL ESTATE INVESTMENT IN ILARO, NIGERIA
MIKAIL OLAYIWOLA OLANIRAN AND MULKAT AJIBOLA YUSUFF, Volume 3 Issue 1, 2020 Pages 12-24, Published: 2020-09-25
Peculiar characteristics of real estate investment set it apart from other investment windows. Therefore real estate investors need to enhance prospects of and minimize impacts of identified peculiar characteristics on their investments. This paper conducted analysis of real estate investment characteristics, their advantages and disadvantages vis-a-vis coping strategy adopted by direct real estate investors to earn returns in Ilaro, Ogun State, Nigeria. The study population consists of 180 residential and commercial buildings in Ilaro town identified as physically productive for investment and having standard conformity. The researchers employed scientific method to select a sample size of 123 accessible property owners and estate agents which represent the units of analysis (respondents) of the study. The respondents who participated in the filed survey were carefully selected through probability-based simple random sampling from the population of the study to obtain important through well-structured questionnaire which contained 20 metrics. The study employed descriptive statistics including average for data analysis. The findings indicate that residential and commercial properties were predominant and real estate investment was healthy in the study area as average returns on invest were positive at 4.2% and 7.0% respectively. All investors adopted strategies that enable them enjoy prospects and minimize drawbacks of real estate peculiar characteristics which offered them opportunity to earn returns on their investments. It recommends that the real estate investors in Ilaro should invest with caution, because despite healthy real estate investment, it is still fraught with negative impacts, due to its overt uniqueness with associated risk and uncertainty.