Examination of Tenancy Details and Physical Characteristics of Investment Properties in Abuja, Nigeria

Quite a number of studies have been carried out on the concept of investment property and its importance to a nation's economy.1 Investment property is property (real estate) acquired or developed purposely to earn a financial reward through renting, leasing or expectation of price/value appreciation.2 This form of investment has been receiving investors' attention because of the notable diversion away from other forms of investments such as stocks and bonds;3 probably due to the global collapse of the capital market. Greater research attention are focus on quantitative issues of housing rather than qualitative aspects such as the tenancy details, physical and neighborhood quality.10 For instance, renting and duration of the rental agreement are an important aspect of a healthy property investment system of a nation.11 In any property rental arrangement, a lot of factors require consideration especially the one relating to the personality; developers may be more concern about the tenancy details; especially the structure and pattern of expected income while the renters may be more interested in the physical characteristics and quality of the investment property that can indicate rental satisfaction. [...]a strategic approach to the development of workable rental housing policy should recognize existing rental arrangements before finding a flexible and realistic way to enforce them.12 Furthering the understanding of existing rental arrangement before making workable rental housing policy, Babatunde13 is of the view that a tax policy framework that would encourage private sector investment in real estate would need to take cognizance of property rental arrangements and avoid rental disequilibrium in a bid to stimulate economic growth and development. [...]understanding the details of tenancies and leases is an important aspect of a workable rental housing policy. According to the UN-Habitat,14 factors considered to measure the physical characteristics for determining the quality of accommodation by tenants include: the quality in terms of physical characteristics and durability of the building, materials used for building, levels of maintenance, level of crowding, access to jobs and public services, location and social support systems, responsiveness to tenants' mobility and access to basic infrastructure.