Capital Market as a Major Provider of Housing Finance: Are Real Estate Developers Exploring the Opportunities?
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African Real Estate Society (AFRES)
The purpose of this study is to examine capital market as a major provider of housing in Nigeria and the current position of the private developers. The study examined why real estate developers in Nigeria have not explored the opportunities of the capital market to improve their capital base in order to increase their capacity to provide more residential properties. The empirical data were collected via the service of 120 questionnaires to REDAN members in Lagos metropolis. Out of this, 65 were returned, giving a response rate of 54%. SPSS statistical package was used to test the hypothesis and answer some research questions. The descriptive statistics used were frequency tables, crosstabs and non parametric and chi-square. Study revealed that, REDAN members have no financial support from foreign countries. The distribution of the capital base showed 75% of the companies had between N1 million - N1 billion while the remaining 25% had between N1billion and above which were obtained through equity and bank loan. The implication ids that, most of the companies were not having sufficient fund to develop houses. Research findings also showed that, the clientele of REDAN members were mostly middle and high income earners. The study found that, most REDAN members in Lagos had not explored the capital market to boost their capital base and strengthen the capability to provide houses. The study provides a good background for further studies in Nigeria on the capital market and housing delivery.
Real estate , Capital Market , Residential Properties , Housing Finance , Research Subject Categories::SOCIAL SCIENCES
Olalekan, B.A.; J.U. Osagie; T.G. Nubi (2010). Capital Market as a Major Provider of Housing Finance: Are Real Estate Developers Exploring the Opportunities? African Real Estate Society. Naivasha-Kenya