A Study of Real Estate Assets Pricing in Ibadan Metropolis, Nigeria

Abstract

This study examined the determinants of residential real estate asset pricing in Ibadan Metropolis, Nigeria, with emphasis on the influence of macroeconomic, microeconomic, and property-specific factors. A quantitative research design was adopted using structured questionnaires administered to private estate developers and residents of selected housing estates. Descriptive statistics and multiple regression analysis were employed to analyse the data. The descriptive findings revealed that respondents perceived macroeconomic factors as the most influential determinants of property prices, with inflation rate ranking highest among macroeconomic variables. Earnings and profitability emerged as the leading microeconomic factor, while location was identified as the most influential property-specific characteristic. However, regression results showed that interest rate, inflation rate, money supply, gross domestic product, and capital flow did not significantly influence the prices of detached, semi-detached, terrace, and four-bedroom residential properties. The study concludes that residential property prices are better explained by a combination of property-specific, neighbourhood, institutional, and market-related factors than by macroeconomic variables alone. The study recommends integrating these variables into future residential property pricing models to improve valuation accuracy and investment decisions.