Property Market Nature and the Choice of Property Portfolio Diversification Strategies: The Nigeria Experience

• Authors: Abel Olaleye

Title variants

LT

Nuosavybės Rinkos Prigimtis IR Nuosavybės Portfelio Diversifikacijos Strategijos Pasirinkimas: Nigerijos Patirtis

Abstracts

EN

With a focus on the Nigerian property market, this paper considered and empirically analyzed how property market nature and the perception of market players of some qualitative factors have impacted on choice of property portfolio diversification strategies. Questionnaires, backed up with interviews, were administered on 28 institutional property investors and 159 real estate practitioners in three commercial nerve centres of Nigeria, namely, Lagos, Abuja and Port-Harcourt metropolitan areas. The frequency distribution analyses' results revealed that the Nigerian property market was an emerging one and, as it is expected, there was dearth of time series data while investors in the market were small time institutional investors. Using mean rating on a 4-point rating scale, the study found six factors, arising from the nature of the property market, as the significant factors impacting on choice of diversification strategies. These are: the investors' overall expectation of the benefits of diversification scheme, the need to reduce management operating costs, management convenience, operating environment, market players' education and knowledge of alternative diversification techniques and availability or otherwise of data in the market. The result of cross tabulation and Chi-square test also indicated that there was a statistically significant relationship between educational qualifications of practitioners and their choice of diversification strategies.

LT

Daugiausia dėmesio skiriant Nigerijos nuosavybės rinkai, šiame darbe apžvelgta ir empiriškai išanalizuota įtaka, kurią, renkantis nuosavybės portfelio diversifikacijos strategijas, daro nuosavybės rinkos prigimtis ir tai, kaip kai kurie rinkos dalyviai suvokia tam tikrus kokybinius veiksnius. Pasitelkus anketas ir pokalbius, apklaustos 28 į nuosavybę investuojančios organizacijos ir 159 nekilnojamojo turto specialistai trijuose pagrindiniuose Nigerijos komerciniuose centruose, t. y. Lagose, Abudžoje ir Port-Harkorte. Dažnių lentelių analizės rezultatai parodė, kad Nigerijos nuosavybės rinka yra kylanti ir, kaip tikimasi, trūko laiko eilučių duomenų, nes rinkoje veikiantys investuotojai buvo smulkūs instituciniai investuotojai. Apskaičiavus vertinimų vidurkį pagal keturių balų skalę, tyrimo metu nustatyti šeši veiksniai, susiję su nuosavybės rinkos prigimtimi, kurie daro reikšmingą įtaką renkantis diversifikacijos strategijas. Jie yra tokie: bendrieji investuotojų lūkesčiai dėl iš diversifikacijos schemos gaunamos naudos, poreikis mažinti operatyvines vadybos išlaidas, valdymo patogumas, operatyvinė aplinka, rinkos veikėjų išsilavinimas ir žinios apie alternatyvius diversifikacijos metodus bei prieinamos arba kitaip pasiekiamos žinios rinkoje. Be to, kryžminių lentelių ir Chi kvadrato kriterijaus rezultatai parodė, kad tarp specialistų išsilavinimo (kvalifikacijos) ir jų pasirinktų diversifikacijos strategijų yra statistiškai reikšmingas ryšys.

Keywords

EN

Property portfolio; Diversification strategies; Property market nature; Choice factors; Nigeria

• Publisher: Sciendo
• Journal: International Journal of Strategic Property Management
• Year: 2008
• Volume: 12
• Issue: 1
• Pages: 35-51

Contributors

author

Abel Olaleye

• Department of Estate Management, Obafemi Awolowo University, Ile - Ife, Nigeria

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Identifiers

DOI

10.3846/1648-715X.2008.12.35-51