AN EVALUATION OF THE PERFORMANCE ON RESIDENTIAL PROPERTY INVESTMENTS IN SOME SELECTED AREAS OF KADUNA METROPOLIS NIGERIA FROM 2014 TO 2023

Abstract

Investors in Real Estate are usually faced with the decision on the type of property to invest in. This study compared the performance of residential property investments of Kaduna metropolis using some selected areas. Data was obtained from questionnaire administered on firms of Estate Surveying and Valuation, practising in Kaduna metropolis. Data was presented in tables and analysed using percentages and mean. Hypothesis was tested using Person Product Moments Correlation (PPMC). Performance of residential property investment was measured by rental values growth, capital values appreciation and annual returns on investment. In terms of rental values growth and annual returns, 2-bedroom flats performed better than 3-bedrrom flats with 7.56% and 3.21% against 6% and 2.75%. But 3-bedroom flats performed better than 2-bedroom flat in terms of capital values growth with 4.4% against 2.9%. Statistically, there is a significant relationship between returns on 2-bedroom and 3-bedroom flats in Kaduna metropolis from 2014 to 2023. The correlation coefficient of returns on 2-bedrrom and 3-bedroom flats is positive 0.75. To minimise risk and maximise profit, 2-bedroom and 3-bedroom flats should not be combined in a property portfolio in Kaduna metropolis.