EFFECT OF INFLATIONARY HEGDING ON RESIDENTIAL PROPERTY INVESTMENT IN ABUJA

<p><strong><em>Purpose:</em></strong> <em>The study analysed the effect of inflationary hedging on residential property investment returns in selected market in Abuja.</em></p> <p><strong><em>Design/methodology/approach:</em></strong> <em>The study employed systematic random sampling for residential properties' transactions from registered estate surveyors and valuers' firms in the selected study areas (Kubwa, Gwarinpa and Lugbe) in Abuja. The study employed simple regression model to determine the inflationary characteristics of residential property investment.</em></p> <p><strong><em>Findings:</em></strong> <em>The result revealed that unexpected inflation is major type inflation that is not completely hedged by both 2B/R and 3B/R residential property investment provided a partial hedge over the period of study.</em></p> <p><strong><em>Research limitation/implication:</em></strong> <em>the use of only 2bedroom and 3bedroom residential property investment in Abuja without considering other property types.</em></p> <p><strong><em>Practical implication:</em></strong> <em>real estate investors should encourage diversification of investment into residential real estate, in that, it is inflationary hedged.</em></p> <p><strong><em>Originality:</em></strong> <em>the study showed that residential property investment provided a complete hedged against actual and expected inflation.</em></p>