EFFECT OF LITIGATION COST ON REAL ESTATE INVESMENT RETURNS IN AKWA IBOM STATE, NIGERIA.

Abstract

This study examined the impact of litigation cost on real estate investment returns in Akwa Ibom State. The study's objectives were to analyze the frequency of real estate investment disputes and look at how litigation cost affected real estate investment returns in Akwa Ibom State. In this study, we used a correlational research design. Secondary data were gathered from estate surveying and valuation firms in Akwa Ibom State. Additionally, information was gathered from several independent managers of real estate investments. We purposively selected 249 properties that were subject of legal disputes. Both descriptive and inferential statistical approaches were used to evaluate the acquired data. The result of the statistical analysis revealed that rent default disputes accounted for 48.2% of all the six categories of disputes identified. Litigation cost, which had a 0.31 coefficient and a P-value of 0.000, had significant positive impact on the returns. The returns were significantly positively impacted by maintenance cost, which had a P-value of 0.000 and a correlation coefficient of 0.687. We concluded that rent default is the main dispute influencing real estate investment. Real estate investment returns are significantly influenced positively by maintenance and litigation costs. To prevent rent default, we advise conducting a thorough tenant selection process to determine the renter's ability to pay rent. Since litigation has no detrimental effects on real estate investment, it is essential for resolving conflicts. Proper maintenance of real estate investments is necessary to increase demand and boost rent