Journal: Journal Of Economics And International Business Management
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Abstract
The various ways through which real estate investors seek finance in Nigeria include equity funds, consociate capital, family sources, contractor finance, mortgages and recently through real estate investment trusts. In recent times, investors have been dissatisfied with various methods and are seeking ways to get real estate investment funds without difficulties. The purpose of our paper is to analyse these different sources and recommend the one/ones that can improve the situation. The methodology consists in a descriptive survey through questionnaire. A sample size of 511 respondents was randomly selected from a population of 2,320 chosen from finance companies, bankers, REITs staff and registered estate surveyors. Data collected were analysed through ANOVA tool. Analysis showed that traditional sources of real estate finance are no more adequate for provision of housing in Nigeria and that introduction of real estate investment trust (REIT) system will increase house ownership in Nigeria and increase housing stock. The researchers also recommended that property investment companies should establish REITs and invest in property. Unit investors may sell their shares in future and buy private property should they desire to be identified as property owners, rather than having pieces of property in various places