Analysing the Role of Diaspora Remittances in Driving Real Estate Investment in South East Nigeria

This study analyses the role of diaspora remittances in driving real estate investment behaviour in South East Nigeria, empirically examining how remittance inflows influence housing investment volumes, property market prices, and the geographic distribution of construction activity across Enugu, Anambra, Imo, Abia, and Ebonyi States. South East Nigeria has one of the highest emigration rates in Nigeria and receives substantial diaspora remittances, a significant proportion of which is directed to real estate and housing investment in the region. The study employs a multi-method approach combining a quantitative household survey of 500 households with diaspora connections in five state capitals, examining remittance receipt patterns, investment allocations, and property outcomes, with an econometric analysis using state-level panel data linking remittance estimates to property market indicators. Survey respondents are screened for remittance receipt and at least one property investment funded by diaspora transfers. Investment decision factors, project types, investment locations, and outcome satisfaction are collected. Cross-state panel regression examines the relationship between estimated diaspora remittance volumes and residential building permit issuance and construction sector output. Findings confirm that real estate is the dominant investment destination for remittances among South East diaspora households, accounting for 62 percent of declared investment allocations. Diaspora housing investment is disproportionately directed to ancestral hometown locations rather than urban centres, contributing to suburban and peri-urban property market development. Remittance-to-investment translation is hampered by construction management challenges and contractor reliability concerns among diaspora investors who cannot supervise projects directly. Recommendations include a state-backed diaspora housing investment facilitation scheme. Keywords: diaspora remittances, real estate investment, South East Nigeria, housing market, diaspora housing.