Real estate security and other investment assets. A comparison of investment characteristics in the Nigerian stock markets
| Pages | 151-161 |
| Published date | 07 March 2008 |
| DOI | https://doi.org/10.1108/14635780810857890 |
| Date | 07 March 2008 |
| Author | Amidu Abdul‐Rasheed,Aluko Bioye Tajudeen,Nuhu Muhammad Bashar,Saibu Muibi Olufemi |
Real estate security and other
investment assets
A comparison of investment characteristics in
the Nigerian stock markets
Amidu Abdul-Rasheed and Aluko Bioye Tajudeen
Department of Estate Management, Obafemi Awolowo University, Ile-Ife,
Nigeria
Nuhu Muhammad Bashar
Department of Estate Management, Federal University of Technology,
Minna, Nigeria, and
Saibu Muibi Olufemi
Department of Economics, Obafemi Awolowo University, Ile-Ife,
Nigeria
Abstract
Purpose – Quite a substantial number of academic papers have examined the performance of both
direct and indirect real estate relative to other investment assets. While these studies are valuable in
the field of real estate investment performance measurements, a gap still exist in the literature on the
comparative performance of investment assets in the various sectors of the stock markets of most
emerging economies. This paper aims to fill the gap by providing analysis of the historical
performance of real estate and other securities in the Nigerian capital market.
Design/methodology/approach – Annual open and closing market prices of shares and dividend
of sampled listed companies in addition to data on all share index (ASI), consumer price index (CPI)
and yield on 90-days T-Bill were obtained for the period 1999-2005. These were then analysed using
descriptive, risk-adjusted measures and regression models.
Findings – The empirical evidence suggests that while real estate outperformed the market on a
nominal basis, it underperformed the market stock on a risk-adjusted basis over the time period of
analysis. Unexpectedly, real estate security did not provide a good protection against inflation and is
also uncorrelated with the stock market.
Originality/value – This paper provides empirical evidence ofthe investment characteristic of
indirect real estate investment in Nigeria. The results suggest that real estate security does not after all
provide a good substitute to direct real estate investment.
Keywords Stock markets,Real estate, Assets, Nigeria, Capitalmarkets
Paper type Research paper
1. Introduction
Investment generally entails the commitment of a lump sum now for future streams of
income flow and/or for capital appreciation. Puts in a different context, it is an
acquisition of an asset by an individual or institution with a view to earning returns,
either through its income or capital gains. In investment market, investors are
generally faced with numerous alternative investments where fund could be ejected.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1463-578X.htm
Real estate
security
151
Received February 2006
Accepted April 2007
Journal of Property Investment &
Finance
Vol. 26 No. 2, 2008
pp. 151-161
qEmerald Group Publishing Limited
1463-578X
DOI 10.1108/14635780810857890
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