Urban violence and real estate investment in Nigeria

Urbanisation is often bedeviled by violence, especially in Less Developed Countries (LDCs). Unrest is one of the major causes of urban violence, which may be political, religious, or ethnic. In the LDCs this usually leads to vandalism and arson, which constitute a risk to real estate investment. This paper focuses on the effects of urban violence on real estate investment and property values in Nigeria. The study was conducted in Idi Araba in Lagos, Nigeria four years after the 2002 religious and ethnic violence. Structured questionnaires were administered to a sample of property investors and tenants. Findings from the research reveal a fall in the demand for residential properties in the study area coupled with a decrease in rental values for a period of 2 years after the incident. The paper proffers recommendations, which include fostering peace among various religious and ethnic groups in order to preserve investment in real estate in urban centres in Nigeria.