Inflation Hedging Potentials


of Residential Real Estate Investments

in Akwa Ibom State, Nigeria



By Mbosowo Ebong EKPO (PhD)
Department of Estate Management and Valuation

Hosanna Moses ATTAI (MSc)
Department of Surveying and Geoinformatics

Aniedi Akaninyene ISOK
Department of Estate Management and Valuation

Akwa Ibom State Polytechnic
Ikot Osurua, Ikot Ekpene

Akwa Ibom State, Nigeria


This research examines the relationship between residential real estate investment returns and the actual, expected and unexpected inflation components of the Nigerian economy, with a view to determining the inflation-hedging characteristics of residential real estate investment in the three senatorial districts of Akwa Ibom State of Nigeria. In order to achieve the stated aim, the objectives were to evaluate the average capital and average rental values in the study area, to analyse the return profile of residential real estate in the study area, to analyse the inflationary trend in the study area, to establish the inflation-hedging potentials of residential real estate in the study area. This research work adopted the cross-sectional survey type of design. The research population comprised Estate Surveyors and Valuers who have offered professional services across the State. Data was obtained through questionnaire survey. This was subsequently translated to returns using the Holding Period Returns. The Consumer Price Index was used as the actual inflation rates. Similarly, the 91-day Treasury bill rates were used as proxy for expected inflation for the period between 2012 and 2021. The two groups of data obtained for the study were subjected to unit root test using the Phillip-Perron test and the Ordinary Least Square Regression analysis was conducted between the variables. Findings from the study revealed that residential real estate returns from Ikot Ekpene senatorial district had a complete hedge against both actual and unexpected inflation, while it indicated a perverse hedge against expected inflation. It was also found out that returns from residential properties in Uyo senatorial district indicated a zero hedge against all the components of inflation, while returns from residential real estate investment in Eket senatorial district indicated a perverse hedge against actual and unexpected inflation components as well as a partial hedge against the expected inflation during the study period. The investment information provided in this study has significant implications for both local and foreign investors desiring to invest in the Nigerian property market and it is a useful resource for Sub-Sahara African growth and development in this era.

Keywords:       Returns, Inflation, Residential Real Estate, Investment, Akwa Ibom State.


Residential real estate is very vital in the economic and physical development of towns and cities all over the globe. Investors decide to carry out investments in asset classes that can hedge against inflation. Rapid and continued decisions to invest in residential real estate are expected in cities with better property performance. Many authors have attested to the existence of undeniable link between inflation and returns of residential property. The inflation hedging potential of an investment has to do with the ability of investment returns to have a hedge against inflation (Ekpo, 2021). Extensive development of residential real estate has been a distinguishing feature of the 21st century in Akwa Ibom State especially from 2007 when the uncommon transformation agenda of the Godswill-Akpabio-led administration was unleashed with evidence of concentration of economic and administrative decision-making hubs in towns across the state. Since then, investors have taken advantage of investing in residential real estate within the state…


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How to cite this paper: Ekpo, M. E., Attai, H. M., Iso, A. A. (2022). Inflation Hedging Potentials of Residential Real Estate Investments in Akwa Ibom State; PM World Journal, Vol. XI, Issue VIII, August.  Available online at https://pmworldlibrary.net/wp-content/uploads/2022/08/pmwj120-Aug2022-Ekpo-Attai-Isok-inflation-hedging-potentials.pdf

About the Authors

Mbosowo Ebong EKPO, PhD

Akwa Ibom State.


Dr. Mbosowo Ebong EKPO [BSc (Est. Mgt.), MSc (Est. Mgt.), PhD (Est. Mgt.) ANIVS, RSV] is a native of Utu Ikpe in Ikot Ekpene Local Government Area of Akwa Ibom State, Nigeria. He is the Principal Partner of Mbosowo Ebong & Associates – a firm of Estate Surveyors and Valuers with its Corporate Headquarters at No. 93 Abak Road, Ikot Ekpene, Akwa Ibom State. He obtained his First School Leaving Certificate from Methodist School, Utu, Abak Road, Ikot Ekpene. He attended St. Mary’s Science College and obtained his West African Secondary School Certificate in 1998. He gained admission into the prestigious University of Uyo where he studied Estate Management and successfully graduated in 2007 and obtained his Bachelor of Science (HONS) in Estate Management. He taught in Yobe State Polytechnic, Damaturu when he was posted to Yobe State for his compulsory NYSC programme in 2007. He holds a Master of Science (MSc) degree from the University of Uyo, with specialization in Property Valuation. His love for education earned him a Doctor of Philosophy (PhD) in Estate Management from the same prestigious University of Uyo, with specialization in Real Estate Investment Appraisal. He holds a Diploma Certificate in Statistical Data Analysis.

He is an associate member of the Nigerian Institution of Estate Surveyors and Valuers and has been conferred with the rights and privileges to practice professionally as a Registered Estate Surveyor and Valuer by the Estate Surveying and Valuation Board of Nigeria. He is a lecturer with over 15 years’ experience in research and academia. He is happily married to Dr. Unwana Mbosowo Ebong and the marriage blessed with children. He plays all musical instruments and can speak Annang, English and Hausa languages fluently. Dr. Ekpo can be contacted at mbosowoebong@gmail.com


Hosanna Moses ATTAI, MSc

Akwa Ibom State, Nigeria


Hosanna Moses ATTAI, BSc, MSc hails from Ikot Ntuen in Oruk Anam Local Government Area of Akwa Ibom State of Nigeria. He had his BSc from University of Uyo and MSc University of Nigeria, Enugu with specialization in GIS and Remote Sensing. He is a Lecturer in Surveying and Geo-informatics Department, Akwa Ibom Polytechnic, Ikot Ekpene. He has published in Several local and international Journals. He is a Registered Surveyor. He can be contacted at hosannaattai@gmail.com


Aniedi Akaninyene ISOK

Akwa Ibom State.


Anieda Akaninyene ISOK hails from Ifa Ikot Abia Nkpo in Uyo Local Government Area of Akwa Ibom State. She has Higher National Diploma Certificate in Estate Management and Certificate in Labour Law and Relations from University of Jos. A Lecturer in The Department of Estate Management and Valuation Akwa Ibom State Polytechnic, Ikot Ekpene. She has published in several local and international journals. She is happily married. She can be contacted at aniejayisok@gmail.com