Performance of Foreign Direct Investment in Commercial Real Estate in Nigeria from 2006-2017
Journal Title: Journal of Economics, Finance and Management Studies - Year 2021, Vol 4, Issue 07
Abstract
Performance of FDI in commercial real estate in Nigeria when compared to international benchmark figures is yet to be established and documented in literature. The aim of the study was to appraise the performance of FDI in commercial real estate in Nigeria from 2006 to 2017 in a bid to empirically assist foreign direct investors’ decisions on investing in the Nigerian commercial real estate sector. The objectives were to; ascertain and compare returns from foreign direct investments in commercial real estate in Nigeria with international benchmark; and to examine how FDI tax responsibilities in Nigeria compare with the global benchmark rate. The study adopted ex post facto research design, and the unit of analysis was selected foreign controlled commercial real estate investments in Lagos and Abuja. The study adopted the Jones Lang LaSalle benchmark settings for commercial real estate performance indicator due to its empiricism from an international perspective where yield is 5.7%, capital growth is 7% and rental growth is 5.5%. Data were collected on rental values, capital values, tax responsibilities, and was analyzed using T-test. The study showed a yield of 4%, (t = 6.364; p < 0.05) and a capital growth rate of 21%, (t = 1.592; p > 0.05), while there was no negative variation in FDI tax responsibilities in Nigeria and international benchmark rate cap of 30% (t = .8666; p > 0.05). The study recommended that property managers should practice tenant mix and flexible leases and spaces.
Authors and Affiliations
Nkiruka Evangeline Obi-Aso
Keywords
Related Articles
- EP ID EP703630
- DOI 10.47191/jefms/v4-i7-10
- Views 108
- Downloads 0
The Role of Leadership and Competence in Improving Work Motivation and Performance of Cooperative Employees
The purpose of this study was to determine the effect of leadership and competence on employee motivation and performance at the Indonesian Employee Cooperative Center (PKP-RI) Jember Regency.. This research is a quantit...
Is Motherhood a Motivational Factor for Moroccan Women Entrepreneurs ?
A mumpreneur is a woman that identifies herself as a mother and a businesswoman at the same time in order to achieve a professional and family balance that is difficult to achieve in the traditional wage-earning organiza...
Environmental Uncertainty in The Effect of Transfer Pricing on Tax Avoidance
One of the tax avoidance schemes undertaken by companies, especially multinational companies, is transfer pricing. Transfer pricing decisions in tax avoidance can depend on environmental uncertainty. This research analyz...
Implementation of Digital Applications to Broiler Chicken Farmers in Jenggawah District, Jember District
Research data collection was carried out on July 1 – October 30, 2022, at breeders in the Jenggawah sub-district, Jember district. The purpose of this study was to find out the analysis of partnership pattern broiler far...
Feasibility Analysis of Porang Farming (Amorphophallus Muelleri Blume) in Klangon Village, Saradan District, Madiun Regency
Klangon Village, the center of producing porang plants in Madiun Regency is faced with problems, namely low selling prices of porang and rising production costs. This study aims to analyze the costs, revenues, and income...