Challenges and Prospects of Real Estate Investment Funding in South East Nigeria: Way Forward on Capital Market Instruments

Abstract

The failure of the conventional means of funding real estate development is raising serious concerns in Nigeria. This has necessitated the need for reliable alternative means of funding real estate investment. Unfortunately, extant studies have shown that capital market instruments considered to be suitable are still slow and low in their performance levels in Nigeria. This research, therefore, focuses on identifying challenges and determining prospects of funding real estate development through capital market instruments in South-East geopolitical zone of Nigeria. The population sample of study is 245; comprising of real estate developers, registered estate firm, primary mortgage and Federal mortgage banks, Nigerian Stock Exchange and Security and Exchange Commission and selected academia in estate surveying profession in the study area. The study adopted holistic sampling, with the use of Likert scale questionnaire and interview schedule. Data were presented in tables, percentages and bar charts; and analyzed with Test of Proportion using Z-approximation test. The result quantitatively identifies 7 major challenges considered to be associated with real estate investment funding in South East Nigeria and highly statistically significant 6 factors determining prospects of the capital market instruments in funding the real estate development in the study area. Based on these findings, useful recommendations are made.
Keywords: real estate, housing deficit, capital market instruments, investment funding, securitization