ANALYSIS OF PROPERTY INVESTMENT IN AWKA, ANAMBRA STATE, THE RISK AND RELATIONSHIP PERSPECTIVE

Author's Name: MBAH, CALISTA CHINEDU and UDOBI, ALEX NNAMDI
Subject Area: Other
Subject Other
Section Research Paper

Keyword:

Property, Investment, Returns, Risk, Performance and Measurement


Abstract

It is crystal clear that there increased interest on investment in real estate globally, these interests has resulted in the dire need for access to information on path of investors especially as it concerns real estate and measurement of it its performance across various properties within the property market. This work compared the risks and returns on residential and commercial real estate investment in Awka, Anambra State between the periods of 2008 to 2017. Mean returns, standard deviations and co-variance patter standard tools were used to evaluate the different property investment performance within the study area. Findings of the study indicated that investment in commercial property performed satisfactorily than investment residential property with a mean annual return of 14% as against 12.1%. The performance of commercial property investments as it relates income and capital appreciation/growth was higher within the period of measurement. Antithetically, residential property investment performed more satisfactorily in terms of risk of 4.1% as and 0.34 risk–return as against 10.2% of risk and 0.72 risk-return for commercial property investment within the period under study. The study noted that while both residential and commercial property investments performed creditably well with positive mean returns and risk adjusted returns, commercial property performed well better than residential property investments. It is expected that there should be periodic portfolio performance analysis from time to time to help property portfolio managers or investors in deciding how best to select the investment portfolio that promises a maximum improvement of investment returns and minimizes related risk.

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