Abstract:

Real estate is capable of providing comfortable houses for household homes, offices for firms, warehouses for manufacturing companies and so on. Therefore, the sustainable improvement of real estate investment performance is important as this will in turn improve the housing sector in Nigeria. Historically, real estate as an alternative type of investment has provided high yields of returns to investors in Nigeria. Investment in real estate provides liquidity to the real estate sector which is capable of improving its performance and the housing sector in Nigeria. However, the liquidity of real estate in Nigeria is found to have been affected by various factors such as; interest rate and inflation rate. When there is the existence of high interest rate, investors retreat from seeking for loans to invest in real estate, this in turn reduces investment in real estate. Therefore, the efficient management of the factors affecting real estate liquidity is important as this determines the performance of real estate in Nigeria.