EFFECT OF MACROECONOMIC VARIABLES ON THE GROWTH OF REAL ESTATE INVESTMENT IN NIGERIA: 1992 – 2016

This study aims at examining the effect of macroeconomic variables on the growth of real estate investment in Nigeria, 1992 – 2016. Secondary data on the selected macroeconomic variables were obtained from the Nigeria National Bureau of Statistics (NBS). Descriptive and inferential statistics were used to determine the effect of macroeconomic variables on the growth of real estate investment. This involved the use of weighted means, Pearson Product Moment Correlation and the Ordinary Least Square Regression. Findings from the study showed that interest rate has an inverse relationship with the growth of real estate investment, while money supply and population are positively related with the growth of real estate investment in Nigeria. This study recommends that Government should formulate favorable interest rate policies to assist in stabilizing property prices, thereby making housing more affordable. Secondly, monetary policy measures should be enhanced by the Government through the Central Bank of Nigeria (CBN) to increase money supply, in order to increase investment in real estate. Also, the financial reform and credit policy of the Federal Mortgage Bank should be geared towards improving the functions of the National Housing Fund (NHF) by making more loanable funds available to the civil servants and the non-organised private sector (large population) through soft loans bearing attractive interest rate and lessen the stringent collateral security requirements on the citizens to enhance housing affordability.