Background of the Study
Access to credit is a fundamental driver of investment in the real estate sector, particularly for small-scale property developers and individual investors. In Nigeria, the property investment landscape is often challenged by limited access to financing, high-interest rates, and insufficient lending infrastructure (Aliyu & Sulaimon, 2023). For small-scale property investors, these barriers make it difficult to initiate or expand property projects, thus inhibiting the growth of the real estate market in many states, including Gombe.
Gombe State, located in northeastern Nigeria, has seen gradual urbanization and population growth in recent years, which has stimulated demand for residential and commercial properties. However, despite this growth, small-scale property investors face significant challenges in accessing affordable credit, which restricts their ability to meet the increasing demand. Credit accessibility plays a crucial role in enabling property investors to finance construction projects, purchase land, and develop properties that cater to the needs of the growing population.
This study explores how the availability and accessibility of credit influence small-scale property investment in Gombe State, aiming to identify key factors that either facilitate or hinder investment in the region’s real estate market.
Statement of the Problem
The real estate sector in Gombe State has been limited by the lack of affordable credit for small-scale property developers. Many investors are unable to access the capital required to finance their projects, primarily due to high interest rates, stringent lending conditions, and inadequate financial products tailored to small-scale investors. As a result, real estate development has been slow, and the demand for affordable housing and commercial properties remains unmet. This research seeks to assess the effect of credit accessibility on small-scale property investment and the overall growth of the property market in Gombe.
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
The study will focus on small-scale property investors in Gombe State, specifically those who rely on formal financial institutions for credit. Data will be collected from property developers, banks, and real estate agents. Limitations may include the reluctance of some investors to share financial information and the challenge of accessing reliable data from financial institutions.
Definitions of Terms