AN EVALUATION OF FACTORS INFLUENCING PROLIFERATION OF COMMERCIAL PROPERTY INVESTMENT AROUND AUCHI POLYTECHNIC

This study investigates the factors influencing the proliferation of commercial property investment around Auchi Polytechnic, Edo State, with emphasis on the associated issues and prospects. The research employed the survey design using questionnaire to collect data from 452 respondents comprising of 442 commercial property investors, 9 financial institution and 1 registered estate firm in Auchi. Data was analysed using descriptive and inferential statistics, which includes Weighed Mean Score (WMS), Relative Importance Index (RII), factors analysis and trend analysis. The results of the analysis reveal that the major types of commercial properties in the study areas includes retail shops and stores, hotels and guesthouses, and restaurants and bars. The factors influencing commercial property investment are shifts in property type preferences, proximity to amenities and competitors, demographics and local market, foot traffic and visibility, and infrastructure and development. The major challenges of commercial property investment include fluctuations in market conditions, finding and retaining reliable tenants, recession, inflation, amongst others. The study recommends that investors and developers should stay up-to-date with market conditions and adjust their strategies accordingly to mitigate fluctuations in market conditions, investors should diversify their investments and maintain a cash reserve to mitigate the impact of economic uncertainties due to recession, inflation, property managers and landlords should implement a thorough tenant screening process and offer competitive lease terms to attract and retain reliable tenants when finding and retain reliable tenants. Property managers and landlords should maintain appropriate insurance coverage and implement security measures to mitigate the impact of vandalism and other unexpected events.