Effect of Mortgage Loans on the Performance of Real Estate Industry in Nigeria

Real estate industry performance has continued to generate debate in the developing nations. The objective of the study is to examine the effect of mortgage loans on the performance of real estate industry in Nigeria. The study employed an ex-post facto design. The method of data collection is secondary. Drawing on annual secondary time-series data from the Central Bank of Nigeria StatisticalBulletin.The population of the study is twenty-five (25) years.This study covers the 2000-2024 period.The data were analyzed with the use of descriptive statistics, correlation analysis, and unit root test; while ordinary least squares was used to analyse the model.The findings revealed that primary mortgage bank loans have a significant effect on the performance of the real estate industry in Nigeria.The findings also showed that national housing fund loans have significant effect on performance of real estate industry in Nigeria.The findings also showed that rent-to-own loans, have significant effect on the performance of the real estate industry in Nigeria.Finally, the finding revealed that estate development loans have a significant effect on performance of real estate industry in Nigeria.The outcome of the study underscores the critical role of credit-window design: broad-based mortgage and housing-fund expansions, when insufficiently targeted or poorly administered, may exacerbate market volatility.The study recommended that quick adoption of flexible and demand-responsive instruments such primary mortgage bank loans, national housing fund loans, rent-to-own loans, and estate development loans, foster sustained real estate industry growth.It further recommended that the Central Bank of Nigeria and mortgage institutions should improve credit risk evaluation and ensure that disbursed loans are properly aligned with viable housing projects.Monitoring and compliance mechanisms should be enhanced and the mortgage scheme should be restructured to eliminate bureaucratic delays.