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 96
- Downloads 0
Evaluation of Customer’s Switching Behavior towards Banking Service Providers in Hanoi
Service quality and customer switching behavior are among the most important factors that affect service firms’ market share and profitability, yet they remain understudied in Vietnam’s service sectors. This study survey...
Comparative Analysis of Student Entrepreneural Interest Inventory Test
The development of entrepreneurship is one of the factors in the economic development of a country. So that entrepreneurship education is needed to increase student interest in becoming entrepreneurs. This research is a...
The Influence of Asset Growth, Profitability, and Firm Size on the Capital Structure of Islamic Banking in the World Period 2011-2020
This study aimed to know the influence of asset growth, profitability, and firm size on the capital structure of Islamic banking in the world. This study is quantitive with an explanatory approach. The population in this...
The Effect of Leadership and Work Environment on Work Satisfaction with Motivation as Intervening Variables In PT CIPTA TPI (MNCTV)
This study aims to: 1) analyze the influence of leadership and work environment on motivation 2) analyze the influence of leadership and work environment on job satisfaction, 3) analyze the influence of motivation on job...
Analysis of Service Quality and Employee Performance on Customer Satisfaction in Bank Mandiri Klaten Branch Office
All businesses must ensure customer satisfaction by offering superior products and services, given the intense competition that businesses face in order to stay in the market. In order to prevail in the competition, the...