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Article
Publication date: 3 January 2024

Halim Yusuf Agava and Faoziah Afolashade Gamu

This study evaluated the effect of macroeconomic factors on residential real estate (RE) investment returns in the cities of Abuja and Lagos, Nigeria, with a view to guiding RE…

Abstract

Purpose

This study evaluated the effect of macroeconomic factors on residential real estate (RE) investment returns in the cities of Abuja and Lagos, Nigeria, with a view to guiding RE investors and researchers.

Design/methodology/approach

A survey research design was employed using a questionnaire to collect RE transaction data from 2008 to 2022 from estate surveying and valuation firms in the study areas. Rental and capital value data collected were used to construct rental and capital value indices and total returns on investment. The macroeconomic data used were retrieved from the archives of the Central Bank of Nigeria (CBN). Granger causality (GC) and multiple regression models were adopted to evaluate the effect of selected macroeconomic variables on residential RE investment returns in the study areas.

Findings

The study found a progressive upward movement in rental and capital values of residential RE investment in the study areas within the study period. Total and risk-adjusted returns on investment were equally positive within the study period. Only the inflation rate, unemployment rate and real gross domestic product (GDP) per capita were found to be the major determinants of residential RE investment returns in the study areas within the study period.

Research limitations/implications

The secrecy associated with property transaction information/data by RE practitioners in the study areas posed a challenge. Property transaction data were not adequately kept in a way for easier access and retrieval in many of the estate firms and agent offices. Consequently, there was a lack of data that spanned the study period in some of the sampled estate firms or agent offices. This data collection challenge was, however, overcome by the excess time spent retrieving the required data for this study to ensure that the findings appropriately answer the research questions.

Practical implications

Inflation and GDP per capita have been found to be significant factors that influence residential RE investment performance in the study areas. Therefore, investors should pay attention to these identified macroeconomic factors for residential RE investment in the study areas whilst making investment decisions in order to mitigate a possible loss of income or return. The government should formulate and implement economic policies that would address the current high unemployment and inflation rates in Nigeria at large.

Originality/value

This study has extended and further enriched the existing body of knowledge in the field of RE investment analysis in Nigeria. To the best of the authors' knowledge, this study is the first to adopt the Cornish Fisher value-at-risk and modified Sharpe ratio models to analyse risk and risk-adjusted returns on residential RE investment, respectively, in Nigeria. It has therefore redirected the focus of RE researchers and practitioners to a more objective approach to RE investment performance analysis in Nigeria.

Details

Journal of Property Investment & Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 12 March 2024

Nurcan Kilinc-Ata, Abdulkadır Barut and Mucahit Citil

Today, many industries are implementing creative approaches in response to increasing environmental awareness. It is of great importance to answer the question of whether the…

Abstract

Purpose

Today, many industries are implementing creative approaches in response to increasing environmental awareness. It is of great importance to answer the question of whether the military sector, one of the most important sectors, can support renewable energy (RE) adaptation. This study aims to examine how military spending affects the supply of RE in 27 Organization for Economic Cooperation and Development (OECD) nations as well as the regulatory function of factors such as innovation, international trade and oil prices between 1990 and 2021.

Design/methodology/approach

The study examines the effects of military spending, income, green innovation, international trade, oil prices and the human development index on the supply of RE using various econometric approaches, which are the cointegration test, moments quantile regression and robustness test.

Findings

The findings demonstrate that all factors, excluding military spending, quite likely affect the expansion of the renewable supply. Military spending negatively influences the RE supply; specifically, a 1% increase in military spending results in a 0.88 reduction in the renewable supply. In addition, whereas income elasticity, trade and human development index in OECD nations are higher in the last quantiles of the regression than in the first quantiles, the influence of military spending and innovation on renewable supply is about the same in all quantiles.

Practical implications

OECD nations must consider the practical implications, which are essential to assess and update the military spending of OECD countries from a green energy perspective to transition to clean energy. Based on the study’s overall findings, the OECD countries should incorporate the advantages of innovation, economic growth and international trade into their clean energy transition strategies to lessen the impact of military spending on renewables.

Originality/value

The study aims to fill a gap in the literature regarding the role of military expenditures in the RE development of an OECD country. In addition, the results of the methodological analysis can be used to guide policymakers on how military spending should be in the field of RE.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 29 March 2024

Sharmila Devi R., Swamy Perumandla and Som Sekhar Bhattacharyya

The purpose of this study is to understand the investment decision-making of real estate investors in housing, highlighting the interplay between rational and irrational factors…

Abstract

Purpose

The purpose of this study is to understand the investment decision-making of real estate investors in housing, highlighting the interplay between rational and irrational factors. In this study, investment satisfaction was a mediator, while reinvestment intention was the dependent variable.

Design/methodology/approach

A quantitative, cross-sectional and descriptive research design was used, gathering data from a sample of 550 residential real estate investors using a multi-stage stratified sampling technique. The partial least squares structural equation modelling disjoint two-stage approach was used for data analysis. This methodological approach allowed for an in-depth examination of the relationship between rational factors such as location, profitability, financial viability, environmental considerations and legal aspects alongside irrational factors including various biases like overconfidence, availability, anchoring, representative and information cascade.

Findings

This study strongly supports the adaptive market hypothesis, showing that residential real estate investor behaviour is dynamic, combining rational and irrational elements influenced by evolutionary psychology. This challenges traditional views of investment decision-making. It also establishes that behavioural biases, key to adapting to market changes, are crucial in shaping residential property market efficiency. Essentially, the study uncovers an evolving real estate investment landscape driven by evolutionary behavioural patterns.

Research limitations/implications

This research redefines rationality in behavioural finance by illustrating psychological biases as adaptive tools within the residential property market, urging a holistic integration of these insights into real estate investment theories.

Practical implications

The study reshapes property valuation models by blending economic and psychological perspectives, enhancing investor understanding and market efficiency. These interdisciplinary insights offer a blueprint for improved regulatory policies, investor education and targeted real estate marketing, fundamentally transforming the sector’s dynamics.

Originality/value

Unlike previous studies, the research uniquely integrates human cognitive behaviour theories from psychology and business studies, specifically in the context of residential property investment. This interdisciplinary approach offers a more nuanced understanding of investor behaviour.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 11 January 2024

Sanjay Kumar Kar, Sidhartha Harichandan and Om Prakash

This empirical research intends to examine factors influencing the adoption of renewable energy (RE) using a conceptual model of the consumer decision-making process.

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Abstract

Purpose

This empirical research intends to examine factors influencing the adoption of renewable energy (RE) using a conceptual model of the consumer decision-making process.

Design/methodology/approach

This study uses a primary response-based survey to collect data from 668 respondents interested in adopting RE for their daily usage. The sample respondents were chosen through a multi-stage random stratified technique. The responses were analyzed through structural equation-based modeling techniques to discuss the findings and suggest further implications.

Findings

The findings suggest that factors like knowledge, policy incentives, sustainable development goals (SDGs-7, 11 and 13), socio-economic benefits and risk perception significantly impact the adoption of RE. Besides, risk perception mediates between environmental concerns and the adoption of RE. Also, age has a significant role in RE adoption.

Social implications

The study finds the critical role of government in introducing financial incentives to reduce the initial cost of renewable adoption. Doing so will also promote clean and equitable energy access to society leading to further fulfillment of SDGs. Additionally, steps like knowledge enrichment, designing suitable policies for a manufacturer and public-friendly renewable market development will further facilitate renewable adoption in society.

Originality/value

With an objective to study the public perception and attitude towards renewable adoption, this empirical research is the first of its kind to carry out a real-time survey of the Indian population and suggest policy implications which would benefit all the concerned stakeholders.

Details

Journal of Advances in Management Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0972-7981

Keywords

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