REAL ESTATE INVESTMENT DIVERSIFICATION PROSPECTS IN UYO, AKWA IBOM STATE, NIGERIA

Real estate investors strive to balance returns with risk through a diversified portfolio. This study investigates construction of such a portfolio by incorporating both residential and commercial properties with negatively correlated returns. Data sourced from 20 estate firms in Uyo, Akwa Ibom State, spanning from 2008 to 2023, is analysed using Pearson Product Moment Correlation to explore the relationships among different real estate investment returns. The findings highlight diversification opportunities through combinations of 2-bedroom flats with offices, which demonstrates a negative correlation coefficient of -0.149. Similarly, 5-bedroom maisonettes with offices showed a correlation coefficient of 0.29, while the correlation between 5-bedroom maisonettes and shops stood at 0.543. These correlations underscore the feasibility of constructing a well-diversified portfolio. This study concludes that investing across different real estate classes within a locality can enhance diversification and mitigate risk. It recommends that investors consider diversifying across various property classes in Uyo to balance their portfolio