PERFORMANCE AND RISK-RETURN CHARACTERISTICS OF RESIDENTIAL PROPERTY CAPITAL RETURNS IN NIGERIA. CASE STUDY OF KANO METROPOLIS

Abstract

Residential property investment is ascribed because of its diverse returns potential, disentangling the risk and returns potential of residential property capital returns has been an up-hill task. This study evaluates the performance of residential property investment capital returns. The paper emphasis risk-return features of tenement, two and three-bedrooms property for investment purpose, with a view to advance the understanding of the property market dynamics in Kano metropolis, Nigeria. Quantitative research strategy was utilised using questionnaire survey technique to collect from branch manager of estate firms’ primary data, on capital values of residential properties. This data was subsequently converted into capital returns and put to Phillip-Perron unit root test (stationarity). The study used both the descriptive and inferential statistical approaches for analysis. Findings from the study shows that capital returns from residential property range from 3.62% to 9.52%. with risk-return ratio ranging from 01.71% to 97.11% within the property market, Badawa/GRA property had the lower risk features hence ideally secured location for residential investment. It is on these findings that the study recommended Badawa/GRA property market for risk conscious investors