Taxation and Real Estate Investment Decisions in Ibadan, Oyo State

This study explores how taxation influences real estate investment decisions among property developers and investors in Ibadan, the capital of Oyo State in South West Nigeria. Real estate is one of the most tax-intensive investment classes in Nigeria, subject to capital gains tax, stamp duties, tenement rates, and VAT on related services. Despite this, the relationship between tax obligations and investor behaviour in secondary cities like Ibadan has received limited academic attention. A descriptive survey design is adopted, with primary data collected from 120 real estate developers, investors, and estate agents operating within three selected local government areas of Ibadan. A structured questionnaire assesses perceptions of tax burdens, awareness of tax liabilities on property transactions, and the influence of tax costs on investment volume and location decisions. Secondary data are drawn from the Oyo State land registry and relevant fiscal reports. Descriptive and inferential statistics, including one-way ANOVA, are applied. The study expects to reveal that high stamp duty and multiple taxation from both state and local government sources deter formal property registration, pushing transactions into the informal market. Recommendations include harmonising property tax across government tiers, reducing stamp duty rates on low-value residential properties, and creating tax incentive frameworks for affordable housing developers. Findings are relevant to urban planners, tax legislators, and real estate professionals in Nigeria's third-largest city. Keywords: taxation, real estate investment, Ibadan, stamp duty, property market.