ABSTRACT
The global financial crisis that impacted on all world economies through 2007 and 2009 has not been confined to the finance institutions but has had a direct and indirect impact on the property markets worldwide from both an investment and ownership perspective. It must be noted that the property markets have experienced various levels of impact from the event. The impact of the crisis is considerable if one is to consider the impact on Lagos property market and general real estate practice in Lagos at the point of the crisis as enunciated by various writers, . However, despite the very direct impact of the global financial crisis on residential property markets in 2007, the year between 2009 and 2013 saw an increased rentals and sales in residential properties in Banana Island. Therefore the impact of the global financial crisis on residential properties in Banana Island submarket is not significant. It is suggested that government should immediately increase investment in public infrastructure to support private sector thereby enhancing diversification and competitiveness in real estate investment and this will make rentals more affordable to the increasing population. Also, lending rate to real estate investors should be well managed to avoid predatory lending. This could be achieved by way of reduction to property investors and this will encourage further investment in real-estate development.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Several local and international media have reported on the cause, impacts and the consequences of global financial meltdown. The global financial meltdown is a situation where the world’s status quo can no longer be maintained (Ajayi, 2013).
Cubis (2009) mentioned that over exposure of the lending practices of the advanced countries, “led into a series of complicated issues within the global market economies which resulted in the collapse of numerous banking and other corporate entities, reduced liquidity and created global recessionary pressure”.