Title: Investment Strategies for Building Residential Properties Portfolio in an Oil Dominated Economy
Author: Omoba, Solomon, Ekenta, Chukwuemeka & Deeyah Christopher L.
Abstract This study investigates investment strategies for building resilient residential property portfolios in oil-dependent economies, focusing specifically on Nigeria. Given the inherent volatility of oil prices and their significant impact on economic conditions, it is essential for investors seeking long-term value to understand the unique risks and opportunities present in these markets. Employing a quantitative research method and a descriptive survey design, the study collected data from estate surveyors and valuers in Port Harcourt, Nigeria. A total of 106 valid responses were analyzed from a sample of 181 participants, who were purposively selected from an initial target of 343 respondents. The findings indicate that oil price volatility is widely regarded as harmful to residential property investments, particularly affecting rental income. Nearly 70% of respondents reported having a good or very good understanding of oil price volatility, and an equal percentage believed that its impact on the real estate market is detrimental. Furthermore, the study identifies popular investment strategies, with buy-and-hold and rental properties being the most favored due to their perceived stability and long-term potential. In contrast, strategies like Real Estate Investment Trusts (REITs) and diversified investments were less popular, reflecting a limited confidence in their effectiveness. To mitigate the risks associated with oil price fluctuations, the study recommends that investors diversify their property portfolios and focus on more resilient sectors. Additionally, investors should monitor oil price trends closely and capitalize on short-term opportunities. Policymakers are encouraged to implement measures to stabilize the real estate market, ensuring the sustainability of residential property investments in oil-dependent economies.
•ISSN: 2213-1356
•Publisher: Scholar Touch Publishers
•Area/Scope: Business, Economics & Management; Social Science, Literature, Arts & Humanities; Engineering & Technology; Life Science & Physical Science, Health & Medical Science
•Frequency: Monthly
•Format: Online & Print
•Language: English
•Review Process: Double Blinded
•Access: Open Access