Real Estate Investment Performance and Macroeconomic Dynamics in Nigeria: A Sectorial Analysis

Richard Ugochukwu Elile, Dr. Sunday S. Akpan, Dr. Valliappan Raju

This study examined macroeconomic determinants of real estate investment performance in Nigeria. The growing housing problems and the critical role that real estate can play in solving the housing and other shelter-related as well as macroeconomic problems such as poor economic growth, made this study necessary. Specific objectives were to investigate individual effect of inflation, exchange rate, and per capita GDPr on performance of real estate investment in terms of its contribution to the growth of gross domestic product in Nigeria. The study adopted quantitative research method and used secondary data for the period of 37 years (1980- 2017). The analysis was performed using OLS multiple regression with lagged dependent variable model to account for endogeneity in the data set. Results show that inflation, and GDPr each has significant positive while exchange rate has significant negative effect on real estate sector performance. Based on these findings, it is concluded that inflation, per capita GDPr and exchange rate are important macroeconomic determinants of real estate performance in Nigeria. The study recommends that since monetary policy directives, often times, dovetail these macroeconomic factors, targeting inflation and growth of per capita GDP in future policies could significantly improve real estate sector performance and ultimately solve the perennial housing and related problems in Nigeria.