MACROECONOMIC FACTORS AND REAL ESTATE INVESTMENT IN NIGERIA

  • Ogonna Ifebi Department of Economics, Faculty of Social Science, Chukwuemeka Odumegwu Ojukwu University, Igbariam Campus, Nigeria
  • Tabansi Callistus Okeke Department of Economics, Nnamdi Azikiwe University, Awka
  • Oluchi Ifedi Department of Architecture, Chukwuemeka Odumegwu Ojukwu University, Uli, Anambra State, Nigeria

Abstract

This study investigated the influence of macroeconomic factors on the real estate investment in Nigeria, using annual time series data from 1981 to 2017. The model of the study for analysis of its data was estimated with ordinary least squares (OLS) method. The variables of the study are real estate investment, inflation rate, rate of interest, exchange rate and money supply. The Johansen cointegration testing approach demonstrated a significant long-run relationship between these five variables. The main finding of the study is that macroeconomic variables have a strong influence on real estate investment in Nigeria. The study also found that macroeconomic variables have significantly impacted on the real estate investment in Nigeria for the period of this study. Based on the findings of the findings, the study recommended that the government should adopt sound and stable macroeconomic policies to encourage positive growth in real estate investment. Also, it is recommended that, a corrective measures to curb volatility in the macroeconomic variables should be adopted to avert its negative effect on the real estate investment.

Published
2021-06-28
Section
Articles