Assessment of Commercial Banks’ Willingness in Financing Real Estate Development in Ogun State, Nigeria
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Date
2025-12
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Lead City University Ibadan
Abstract
This study examined the assessment of Commercial Banks’ willingness in financing real estate development in Ogun State, Nigeria. The objectives of this study was to examine the profiles of selected Commercial banks and development organizations in Abeokuta, identify various real estate developments financed by commercial banks, assess the criteria required for financing real estate developments by commercial banks and examine factors influencing the willingness of commercial banks in financing real estate development. The Study adopted descriptive survey research design with purposive sampling techniques. Questionnaires were administered to 92 respondents which comprise of 17 Staff members of Commercial Banks, 30 Real Estate Developers and 45 Estate Surveyors and Valuer. 80 questionnaires was recovered and properly filled. Data was analyzed using descriptive and inferential statistics. Findings showed that Commercial banks provide loans as the major financial instrument for real estate, the major type of real estate development financed by Commercial banks is residential properties. Findings also showed that collateral and legal documentation are the major real estate finance criteria required by commercial banks. Results also revealed the major willingness variable that prompts Commercial banks in financing real estate development is profitability and return, Market condition with their mean score of 3.95 and 3.93 respectively. Furthermore, findings shows that Location, Risk of Project failure, Collateral availability, Return of investment and Interest rate (with their mean scores 3.92, 3.85, 3.82, 3.82, 3.65 respectively) are the factors influenced the willingness of Commercial banks in financing real estate development in Ogun State. The study recommended central bank should consider providing special intervention funds with lower interest rates dedicated to real estate development to make commercial bank financing more attractive.
Keywords: Commercial Bank, Financing, Real Estate, Real Estate Development, Willingness, Ogun State.
Word Count: 273
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Keywords
Commercial Bank, Financing, Real Estate, Real Estate Development, Willingness, Ogun State.
Citation
Kate Turabian