The Challenges of International Investment in Property Portfolio in a Depressed Economy: A Nigerian Experience

Abstract

International real estate investment especially in depressed economy has been an important discourse as it concerns Foreign Direct Investment (FDI). Depressed economies need to overcome their own challenges in the development process especially in the areas of capital accumulation and technological development. Again, it has been established that many real estate investors are increasingly looking to invest internationally for reasons of portfolio diversification and the search for higher risk adjusted returns than can be achieved in their domestic markets. This paper examines the challenges of international Investment in Property Portfolio in a depressed economy: the Nigerian experience. Among the challenges include Security Challenges, Political risk , Financing Risk (Banking Risk), Currency Risk,  Ownership Structure Risk, Property Market Transparency,  Land Registration Process and Transparency of Regulatory System. The paper advises that the Federal Government should work on the macro economy indices to stem most of the risk factors to make the investment arena conducive for international investors to operate profitably. Furthermore foreign investors need to partner with reliable domestic investors and Estate Surveyors and Valuers who are more familiar with the economy terrain to safeguard against losses.