Open AccessAn Overview of Macro-Economic Determinants of Real Estate Price in Nigeria
Author(s) -
Musa Abubakar Alkali,
Ibrahim Sipan,
Muhammad Najib Razali
Publication year - 2018
Publication title -
international journal of engineering and technology
Language(s) - English
Resource type - Journals
ISSN - 2227-524X
DOI - 10.14419/ijet.v7i3.30.18416
Subject(s) - real estate , economics , cost approach , capitalization rate , inflation (cosmology) , macro , real estate investment trust , exchange rate , monetary economics , interest rate , macroeconomics , economy , finance , physics , theoretical physics , computer science , programming language
Understanding the relationship between real estate price and macroeconomic variables in developed countries is appreciated first by considering the housing role in the macro economy. In modern capitalist economy, real estate sector remains the most important element of aggregate demand. Since residential real estate comprises the bulk of country’s tangible capital, the study on relationship between residential real estate price and macro economic variables are very significant for formulation of social and economic policies. The aim of this study is to examines the relationship between real estate residential price and macroeconomic variables in Nigerian economy. The study identified GDP, inflation rate, exchange rate, interest rate and crude oil price as the major determinants of real estate price in Nigeria and they have significant impact on real estate market in general.