RESIDENTIAL PROPERTY INVESTMENT RETURNS INEQUALITIES IN ILORIN

Abstract

One of the important investment decisions is the issue of realisation of the returns on the capital invested. Critical decision on increase of returns in property investment as well as factors which determine the level of returns and impact upon the attractiveness of a residential property investment allows capital owners to make effective and rational investment decisions. This study investigates, the influence of infrastructural facilities on residential property investment returns in Ilorin, Nigeria, The sample frame for the study is 762 across the selected neighbourhoods in Ilorin and the Cochran (1963) formula calculation was adopted to arrive at 317 as sample size. The data collected was subject to quantitative analysis with data handling techniques using; Co-efficient of Variation, Mean, Standard Deviation and Sharpe index to test the relationship between the average return, annual income of residential property in Ilorin. The study revealed a high positive linear correlation between infrastructure and the residential property investment returns; an indication that the infrastructure reasonably predicts residential property investment returns. The study also demonstrated that the availability of functional urban infrastructure leads to property gains which relatively create high residential property investment returns.