TREND ANALYSIS OF INFLATION ON COMMERCIAL PROPERTY VALUE IN LOKOJA, KOGI STATE.
Abstract
Inflation is a critical macroeconomic factor that significantly influences commercial property values. This study investigates the impact of inflation on commercial property values in Lokoja, Kogi State, with emphasis on trends over the past decade. The objectives were: To analyze the trend of inflation in Nigeria over the past decade; To examine how inflation has affected the value of commercial properties; To explore the relationship between inflation rates and commercial property prices in the city; and To identify the challenges faced by investors and property developers in dealing with inflation-related risks. The research employed a descriptive survey design, utilizing structured questionnaires administered to property investors, estate surveyors, and real estate developers in Lokoja, while secondary data were sourced from institutional records on property values and inflation rates. Data were analyzed using descriptive statistics such as frequency distribution, percentages, and correlation analysis to establish relationships between variables. The findings reveal that inflation exerts a considerable impact on construction costs, rental yields, and property prices in Lokoja, thereby increasing investment risks for stakeholders. Key challenges identified include unstable exchange rates, high cost of building materials, and policy inconsistencies, all of which exacerbate inflationary pressures on the real estate sector. The study concludes that inflation plays a significant role in shaping commercial property values in Lokoja. It recommends the adoption of inflation-hedging strategies by investors, the formulation of stable and consistent economic policies by government, and the enhancement of reliable data collection systems to improve decision-making and resilience in the real estate sector.
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