Property Investment Trust: A Vehicle for Real Estate Development in Nigeria
Publication Date: 25/11/2018
Author(s): Ayeni Ekundayo, Esv. Adamu Musa Keffi.
Volume/Issue: Volume 1 , Issue 1 (2018)
Abstract:
Property development requires huge capital which in much way cannot be provided by one person. Sourcing fund traditionally had proved inadequate overtime. Therefore, there is need for better sources of financing property development in Nigeria. This research examines the suitability of real Property Investment Trusts (PITS) in financing property development in Nigeria. To this end, questionnaire were administered on Estate Surveyors and Valuers, Real Estate Developers Security and Exchange Commission (SEC), Mortgage Institutions, Nigeria Stock Exchange (NSE), etc. the research reveals that inadequate property finance constituted the most critical problem to real estate development in the country, it also shows that there is a large property market to support the application of REITS which has be found to adequately meet such capital requirements in developed countries which is still not popular in Nigeria. The research also reveals that for REITS to flourish in Nigeria, property development and capital market, government has to improve on legal and institutional frame works establish and support the mortgage market and ensure a stable economic environment. Percentages and frequency tables were used in analyzing the data collected.
