in a Developing Economy, with a Focus
on Metropolitan Cities in Nigeria
FEATURED PAPER
By Jennifer Ijeoma Nedolisa
and
Prof. Alexander Nnamdi Udobi, PhD
Department of Estate Management
Faculty of Environmental Sciences
Nnamdi Azikwe University
Awka, Anambra State, Nigeria
Abstract
The study examines the challenges faced by international investors in Nigeria’s real property market, with a focus on metropolis cities like Lagos, Abuja and Port Harcourt. This study was based on analyzing the challenges facing the international investments in real property portfolio relation to developing economic growth on metropolis cities in Nigeria. Despite the potential for high returns, international investment in Nigeria’s real estate sector is hindered by various obstacles. Today real estate investments are seen as foundation for wealth creation and economic growth in many countries. This research identifies and analyzes the key challenges, including political and economic instability, legal and regulatory framework challenges, infrastructure and accessibility issues, currency exchange and repatriation difficulties, security concerns, cultural and language barriers corruption and bureaucratic red tape, limited transparency and data using a mixed-methods approach, the reveals that these challenges not only affect investment decisions but also impact the overall performance of real property portfolios. The finding provides valuable insights for international investors, policymakers, and real estate developers seeking to navigate the complex landscape of Nigeria’s real estate market. The study contributes to the existing literature on international real estate investment in developing economies and highlights the need for tailored strategies to address the unique challenges faced in metropolis cities like Lagos, Abuja and Port Harcourt.
Key words: International Real Estate investment, Developing Economy, Challenges in real investment, Real Property Portfolio, Metropolis Cities in Nigeria.
- Introduction
Real estate investment is one of the very important factors for country’s economy. Real estate investment plays a vital role in driving economic development in Nigeria, contributing to job creation, infrastructure development, urbanization and overall economic growth. As one of the key sectors in the country, the real estate industry has a far-reaching impact on various aspects of Nigeria’s economy. International real estate investment has become a vital component of global investment portfolio, offering attractive returns and diversification benefits. However, investing in real property portfolios in developing economies, particularly in metropolis cities like Lagos, Abuja and Port Harcourt.
Nigeria, a developing economy, has witnessed rapid urbanization and growth in its metropolis cities, such as Lagos, Abuja and port Harcourt. This growth has led to an increase in demand for real estate, making Nigeria an attractive destination for international investors seeking to diversify their portfolios. However, investment in real property in Nigeria’s metropolis cities poses significant challenges. Nigeria poses significant challenges. Nigeria’s real estate market, despite its potential, is characterized by in adequate infrastructure, regulatory framework gaps, and economic volatility, making it a high-risk high-reward investment destination. As a largest economy in Africa, Nigeria’s metropolis cities are experiencing rapid urbanization, driving demand for real estate development. However, International investors face numerous obstacles, including currency exchange restrictions, security concerns, and cultural barriers. Moreover, the country’s legal and regulatory framework for foreign property investment is complex and often ambiguous, leading to uncertainty and potential disputes. The study aims to investigate the challenges faced by international Investors in Nigeria’s real property market, with a specific focus on metropolis cities like Lagos, Abuja and Port Harcourt. By examining the experiences of international investors and real estate developers, this research seeks to identify the key challenges, analyze their impact on investment decisions, and provide recommendations for mitigating these challenges. The findings of this study will contribute to the existing literature on international real estate developers operation in Nigeria’s real estate market.
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How to cite this paper: Nedolisa, J. I. and Udobi, A. N. (2024). Challenges of International Investment in Real Property Portfolio in a Developing Economy, with a Focus on Metropolitan Cities in Nigeria; PM World Journal, Vol. XIII, Issue VIII, August. Available online at https://pmworldlibrary.net/wp-content/uploads/2024/08/pmwj144-Aug2024-Nedolisa-Udobi-challenges-of-international-investment-in-developing-economy.pdf
About the Authors
Jennifer Ijeoma Nedolisa
Awka, Anambra State, Nigeria
Miss Jennifer Ijeoma Nedolisa holds BS.c, and MS.c degrees in Estate Management from Nnamdi Azikiwe University, Awka. She is currently a lecturer at Kingsley Ozumba Mbadiwe University Ideato Imo state, Nigeria. She has been published in some reputable journals. Miss Jennifer Ijeoma Nedolisa can be contacted at jennifern4real@yahoo.com.
Prof. Nnamdi Alexander Udobi
Awka, Anambra State, Nigeria
Prof. Nnamdi Alexander Udobi is a former Head of Department of Estate Management, Nnamdi Azikiwe University Awka. An Associate Member of Nigeria Institution of Estate Surveyors and Valuers (ANIVS) and a Registered Estate Surveyors and Valuers (RSV). He has published national and international journals. A reader in Estate Management, Nnamdi Azikiwe University Awka. He is Principal consultant at Alex Udobi and company, a firm of Estate Surveyors and Valuers in Nigeria.
