Comparative Analysis of the Risk-Return Characteristics of Office and Shop Property Investments in Osogbo, Nigeria

Abstract

This study aims at examining the risk-return characteristics of commercial real estate investments in Osogbo Nigeria. Primary data used for this study was obtained through questionnaire survey. A total enumeration survey of all the estate surveying and valuation firms in the study area was carried out. The data collected was used to calculate the income, capital and total returns on investments in commercial properties in Osogbo. Furthermore, descriptive statistics was used to determine the asset returns and asset risk of the selected investment assets. This involved the use of weighted means, percentages and Standard deviations. The study revealed that investments in commercial properties in the study area provided a continuous positive rate of returns ranging between 3.12% and 34.35% while the corresponding risk ranged between 1.50% and 10.11%. The investment information provided in this study has significant implication for both local and foreign investors desiring to invest in the Nigerian property market.

Keywords: Asset, Return, Risk, Investment, Portfolio.