ANALYSIS OF LAND USE CONTROL AND ADMINISTRATION ON REAL ESTATE DEVELOPMENT

ABSTRACT

Land use control and administration play a crucial role in shaping patterns of urban growth, ensuring sustainable development, and influencing real estate investment decisions. This study examined the framework, challenges, and implications of land use control and administration on real estate development in Nigeria, with a view to suggesting strategies for improvement. The research adopted a descriptive survey design, utilizing structured questionnaires administered to stakeholders in the real estate sector, including land administrators, property developers, urban planners, and legal practitioners. Data were analyzed using descriptive statistics to highlight trends, challenges, and impacts. The findings revealed that while Nigeria has an established framework for land use control—anchored primarily on the Land Use Act of 1978, planning regulations, zoning ordinances, and building codes—the system suffers from weak enforcement, corruption, tenure insecurity, bureaucratic inefficiencies, and inadequate cadastral systems. These challenges undermine transparency, discourage investment, and lead to land disputes and unplanned urban expansion. It was further established that effective land administration positively influences real estate development by improving investor confidence, enhancing property values, and promoting orderly city growth. Conversely, ineffective control mechanisms hinder housing delivery and encourage informal land markets. The study concludes that land use control and administration are critical determinants of sustainable real estate growth in Nigeria. It recommends reforms of the Land Use Act, digitization of land administration systems, capacity building for land management institutions, and enhanced stakeholder participation in planning. By implementing these measures, Nigeria can foster an efficient land governance system that supports sustainable urban development and stimulates growth in the real estate sector.

 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Land is one of the most vital natural resources and a central factor of production, particularly in the real estate sector. The control, administration, and management of land directly influence how effectively it can be utilized for residential, commercial, agricultural, and industrial purposes (Omirin, 2003). Real estate development thrives where there is a clear framework for land allocation, ownership, and use, but where land control and administration are weak, development is often hampered.

Land use control refers to the regulation and management of how land is used, whether through zoning laws, planning regulations, or building codes. In most countries, land use control aims to ensure that land development aligns with urban planning goals, sustainability objectives, and economic development strategies (Aluko, 2012). In Nigeria, land use is primarily governed by the Land Use Act of 1978, which vests land ownership in state governors and grants individuals rights of occupancy. While the Act sought to harmonize land ownership and access, it has generated significant debates over its efficiency in supporting real estate growth (Omirin & Nubi, 2007).

The administration of land involves processes such as land registration, titling, valuation, and allocation. Efficient land administration systems provide security of tenure, reduce land disputes, and encourage investment in real estate development (Enemark, 2005). Conversely, inefficient land administration results in overlapping claims, tenure insecurity, and limited access to credit facilities since banks often require clear land titles as collateral (Olawande, 2014).

Real estate development plays a critical role in urbanization, economic growth, and social welfare. It provides housing, infrastructure, and commercial facilities that support national development. However, in many developing nations, particularly Nigeria, challenges such as bureaucratic bottlenecks, corruption, and lack of transparency in land administration have limited the sector’s growth (Nuhu, 2008).

Urbanization further underscores the importance of land use control. As cities expand rapidly, effective land use planning ensures orderly development, reduces slums, and enhances sustainable land utilization. Weak land use control leads to urban sprawl, poor infrastructure provision, and environmental degradation (UN-Habitat, 2010). This situation creates significant constraints for real estate developers, who often face delays in securing permits, land disputes, and inconsistent enforcement of planning laws.

Globally, developed countries like the United States and the United Kingdom have established strong land use control and administration mechanisms that promote real estate investment and sustainable urban growth. Lessons from these contexts suggest that clarity of land rights, efficient planning systems, and stakeholder participation are crucial for successful real estate development (Payne, 2001).

In the Nigerian context, the Land Use Act and various state planning laws were enacted to promote equity, efficiency, and development. However, the disconnect between policy and implementation has created uncertainty in land tenure systems and real estate growth. For instance, obtaining a Certificate of Occupancy (C of O) or development permit often takes several years, discouraging investment (Omirin & Nubi, 2007).

The intersection of land use control, administration, and real estate development thus raises critical questions. How effective are Nigeria’s land use policies in stimulating real estate growth? To what extent does the existing administrative framework support or hinder development? These questions make it necessary to analyze the dynamics of land use control and administration in shaping the trajectory of real estate development in Nigeria.

Therefore, this study seeks to analyze land use control and administration in relation to real estate development, with emphasis on identifying challenges, assessing effectiveness, and recommending reforms that could stimulate growth and sustainability in the sector.

1.2 Statement of the Problem

Land is a finite resource, and its effective management is critical for real estate development. In Nigeria, however, land use control and administration face serious challenges that have limited their impact on real estate growth. The process of acquiring land for development is often complicated by bureaucratic bottlenecks, multiple ownership claims, and lack of transparent records (Nuhu, 2008). These inefficiencies discourage private investment and slow down housing delivery.

Another critical problem is the weak enforcement of planning regulations and zoning laws. Despite the existence of policies and laws, informal settlements and unauthorized developments continue to emerge, undermining urban planning efforts. This inconsistency between policy and practice creates uncertainties for real estate investors and contributes to haphazard urban growth (Olawande, 2014).

Furthermore, corruption in land administration offices has become a significant impediment. Developers often face demands for unofficial payments before accessing land documents, thereby increasing the cost of development. These systemic inefficiencies make real estate projects financially risky and less attractive to both local and foreign investors (Aluko, 2012).

If these issues remain unaddressed, Nigeria’s real estate sector will continue to underperform despite the country’s rising urban population and housing demand. This creates a gap that this study intends to fill by analyzing how land use control and administration affect real estate development and what reforms are necessary to improve efficiency.

1.3 Objectives of the Study

The main objective of this study is to analyze the impact of land use control and administration on real estate development. The specific objectives are to:

1.      Examine the framework of land use control and administration in Nigeria.

2.      Assess the challenges associated with land use control and administration in real estate development.

3.      Determine the extent to which land use control and administration influence real estate growth and investment.

4.      Recommend strategies for improving land use control and administration to enhance real estate development.

1.4 Research Questions

1.      What is the framework of land use control and administration in Nigeria?

2.      What are the major challenges facing land use control and administration in real estate development?

3.      How does land use control and administration influence real estate growth and investment?

4.      What strategies can be implemented to improve land use control and administration for effective real estate development?

 

1.5 Significance of the Study

This study is significant because it contributes to a deeper understanding of the relationship between land management systems and real estate growth. By highlighting the challenges and opportunities within Nigeria’s land administration, it provides valuable insights for policymakers, practitioners, and investors.

For policymakers, the findings will assist in designing reforms that address inefficiencies in the Land Use Act and state planning laws. This could lead to clearer land rights, reduced disputes, and more effective urban development policies (Enemark, 2005).

For real estate developers and investors, the study will shed light on how land use control and administration affect project feasibility, costs, and timelines. Understanding these dynamics will help stakeholders make informed decisions and minimize risks associated with development (Omirin, 2003).

Academically, the research contributes to the body of knowledge on land management and real estate development in Nigeria. It bridges the gap between theory and practice by analyzing how policy frameworks influence actual real estate outcomes.

Finally, for the general public and communities, the study emphasizes the importance of efficient land use control in providing affordable housing, reducing informal settlements, and ensuring sustainable urban growth (UN-Habitat, 2010). By linking land administration reforms with social welfare, it highlights the broader benefits of real estate development for society.

1.6 Scope and Limitations of the Study

This study focuses on analyzing land use control and administration in relation to real estate development in Nigeria, with specific emphasis on the challenges, effectiveness, and implications for sustainable urban growth.

Limitations:

Time: The study is constrained by the limited timeframe available for data collection and analysis, which may restrict the depth of investigation.

Resources: Financial and logistical limitations affected the extent of field surveys and coverage of multiple states, thereby narrowing the scope of empirical evidence.

Respondents’ Attitudes: Some respondents may withhold information or provide biased responses due to sensitivity surrounding land issues, thereby affecting data reliability.

1.7 Operational Definition of Terms

Land Use Control: The regulation of land development through planning instruments such as zoning laws, building codes, and development permits.

Land Administration: The processes of land registration, allocation, titling, valuation, and dispute resolution that govern land ownership and usage.

Real Estate Development: The process of acquiring, improving, and managing land or buildings for residential, commercial, or industrial purposes.

Land Tenure: The legal or customary rights individuals or groups hold over land, determining ownership and usage rights.

Sustainable Urban Development: Development that meets present urban needs without compromising future generations’ ability to meet theirs, achieved through efficient land use and planning.

STRATEGIES FOR EFFECTIVE MANAGEMENT OF PUBLIC HOUSING ESTATE IN NIGERIA

STRATEGIES FOR EFFECTIVE MANAGEMENT OF PUBLIC HOUSING ESTATE IN NIGERIA

ABSTRACT

In the Nigeria context, the public housing estate constitutes an active and major part in prospect development. Without the support of the government providing the public with housing estate, there will be housing shock/shortage in the country but the major problem after financing the structure is the effective management of the public housing provided. This term paper is aimed at examining the strategies for effective management of public housing estate in Nigeria. Literature was reviewed and it was discovered that public estate can be properly management if all the required facilities are available. It was recommended that allocation of accommodation to tenants should be passed on certain policy and point allocation. That allocation accommodation should be those that desired it and make judicious use of the house. In fact, allocation should reflect the need of the tenants and ability to pay the rent and other liabilities that will arose in the process of management.    

CHAPTER ONE

1.0   Introduction

1.1   Background of the study

There is no universal accepted definition for management, it can however be looked at as the science of organization and operation or at the practical level, the act of directing and conducting affairs. Management elements, or functions. Activities include forecasting, planning, commending, co-coordinating and controlling, the functions should be well integrated by a valuer in order to effectively manage the estate to obtain optimum return.

Lawal, (1999) define management as an objective for providing a policy for decision or economic direction. i.e. management can be viewed as a decision making process. Management entails the selection of goals and planning, procurements, organization, coordinating, and controlling of the necessary resources for the desired achievement.

Allsop (1979) defines management as science organization and operation or at a particular level, the act of getting things done in an efficient manner.

The management of public housing estate can be defined as the use and direction of nation’s land resources in order to receive maximum return for the community as a whole. The decision taken in respect of administrating, planning asset must always be viewed against the pattern, the political priority for the community as a whole. Where the interest of the estate and public at large seem to conflicts the estate differed.

However, the country that goes on building but will not effectively manage what it has built is quite simple making history and destroy it immediately putting out a very good structure is not the only thing necessary in housing delivery but sound management and effective maintenance of the built structure. The building without proper management and maintenance can be likend to a new born baby. To obtain a maximum return on property, proper management for the particular property has to be adopted. One has to become to the real understanding of the fact that property management is not a test work rather it requires variety of skills and experience before the management can be effective. At this point, we the management techniques of public housing estate in Nigeria will be examine.

1.2   Aim and objectives of the study

This study is aimed at examining the sustainable strategies applied to the management of public estate in Nigeria.

To achieve the above aim, the following objectives will be pursued;

1. To examine the meaning and management functions as relation to public estate.
2. To examine and analyze the problems inherent in the management of public estate.
3. To ensure the proper use and maintenance of the management of public estate.
4. To make useful recommendation that would improve the management of public estate.

1.3   Need for the study

The need for the management of public estate is not known by all and that is why the general public need to be highlighted. Even though if the public estate do not belong to private individual, there is need to manage estate property because when the government gets back their desired amount in return from the estate then the (government) would push their resources elsewhere and the money gotten from the estate can be used to pay the professional field and maintain the estate.

1. Scope and limitation of the study

This term paper is limited only to the management strategies of public housing estate. Some of the constraints encountered in the course of carrying out this research include; lack of adequate finance, time constraints, inadequate materials in the library. Also the epileptic power supply and inconsistent availability of network posed problem. But the researcher was to gather enough material to justify the validity of the research.

1.5   Methodology

In achieving the objectives of this research, secondary source of data collection was adopted.

        General information

Most of the information used in this project are past ideas for this work was collected  extract from journal and lecture notes, gadgets, unpublished texts, literature past project, newspaper and verification of past records etc. the analyses of data collected is used properly.

THE EFFECT OF RISING PRICES OF BUILDING MATERIALS ON PRIVATE RESIDENTIAL PROPERTIES

THE EFFECT OF RISING PRICES OF BUILDING MATERIALS ON PRIVATE RESIDENTIAL PROPERTIES

 (A CASE ABUJA MUNICIPAL AREA COUNCIL)

CHAPTER ONE

1.1   INTRODUCTION

Housing is one of the essential necessities of life beside food and security. Hence every rational man is desirous of owning a personal house or at least has an opportunity of living in a better accommodation with required basic facilities and utilities in a conducive environment. Shelter is one of the most priorities in our scales of preference when it comes to his needs, this due to its major determinate of productivity Welfare and state of being. Unfortunately, the need is limited in supply worldwide, the cause of this shortage are many. But one of this causes which form basis of this research work is the cost of building materials. The research will examine in practical terms how the cost of building materials has affected private residential properties in Nigeria Generally, and Karu area municipal council in particular. It also proffers remedies to tackle the problems on how our teaming population could be house adequately. Karu has been of the residential area within Abuja municipal area council which has gained tremendous attraction of various dwellers and development for various purpose like wise Nyanya, Durumi, Dutse etc. such attraction has been sequel to the development of private residential properties in the area this write up shall comprise of five chapters chapter one with introductory part of the research while chapter two Is made up of the conceptual frame work which encompass meaning and nature of residential development; also chapter three which research methodology while chapter four treats data presentation analysis, finally, chapter five is the summary of the findings, recommendations and conclusion.

1.2   BACKGROUND KNOWLEDGE OF THE CASE STUDY

Abuja, being Nigeria capital came in existence by virtue of the decree No 6 of 1978, however it has assume that status of nation capital on the 12th December, 1991 when the seat of government was moved from Lagos to Abuja where it take it seat to data the trip of relocate the capital, federal republic of Nigeria began in august 1975 during late General Murtala Mohammed begin on assumption of office, the late General promised to address the deteriorating condition of Lagos and find lasting solution to it is as it becomes clean and in impracticable for Lagos to be retained as the federal capital in order to solve these problems once and for all. The late General Murtala inaugurated distinguish chairmanship of retired Honorable justice Akintola Aguda. The committee was charged with among other these tasks or recommending sweat able and alternative location, having regard to the need for easy accessibility and for every part of the federation. After the committee findings, the report submitted to the federal military government on 20th December. 1975 stated that the total land area in Lagos is estimated to be about 61.72 M2 which was grossly inadequate to be used for federal capital city not to even sharing it with Lagos state government.

The federal capital should be moved out of Lagos and be relocated to the central of the country, and area covering about 8000 M² and situated south of the present Suleja, Niger state. All these recommendations were accepted by the government and promoted the promulgation of federal capital at decree No 604 of 1976, which created the federal capital territory on 5th February, 1976 and vested the ownership and control of all land in the federal capital territory on federal government as well as the administration of the federal capital territory.

1.3   STATEMENT OF THE PROBLEM

The indent study of this problems can be or will be examined by looking at how and to what extent or degree in which rising cost of building material have affected residential (private) property development, what are the effects of rising costs of building material’s in the study area (Abuja Municipal Area Council).

1.4   PURPOSE OF THE STUDY

Nigeria suffers from deep problems that undermine housing and construction companies, so this aspires to reverse the main holding factories o these problems. One of the reason is population growth. Specifically, the average age in Abuja is a mere 18 years. Moreover, Nigeria population growth rate is 2.90% (Central Department of Statistic and Information, 2012). Oil price also seem to be an enormous factors, because it cost more on transportation of personal, shipping of materials, manufacturing and so on. Another factor underlying economic problem, such as inflation, in addition, government project, such as subsidized schools and hospital that helps to cover the high population growth seems to be contributing to higher price.

1.5   OBJECTIVE OF THE STUDY

The project is to examine the effect of rising cost of building materials on private residential property development with a view to recommending positive solution by taking Abuja as the only municipal to carry out informative aims. The following objectives shall be undertaken,

1. To examine the type of building material mostly patronized, weather local or foreign.
2. To examine the trend of the price of building materials between 2006 and 2014.
3. To examine the trend of building materials in Nigeria.
4. To ascertain the difficulties that arise from the project work in studying are and proffer the lasting solutions to them.

1 .6  SIGNIFICANCE OF THE STUDY

This refers to the important of study of the people. This research will help people to know the effect of rising cost of building materials on development. It is also ‘a fair development alternative to expensive building materials, it provide government the opportunity of knowing which area to tackle. The rising cost of building materials so as to reduce the problem being faced by residential property development. It will also serve as reference materials to other researchers.

1.7   RESEARCH METHODOLOGY

1.     The survey intends to use the methodology of identifying the factors

2.     How to identify experts who could help in completing the survey.

3.     The appropriate method of analyze the data in addition, certain factors were evaluated and analyzed to identify the key factors of cost increase in house and construction industry in Nigeria.

The graphic, social and other environmental factors to provide accurate and reliable information regarding the cost rise in Nigeria industry.

1.8   RESEARCH QUESTIONS

The following are research questions tray will guide the study.

1.     What are the main factors that led to high cost of housing construction n the federal capital territory, Abuja?

2.     What are the effects of the factors in housing construction industry?

1.9   SCOPE OF THE STUDY

The study will limit itself to the effect of rising cost building material on residential. Properties development in Abuja municipal area council, this is done in order to enhance adequate coverage of the study area.

1.10 LIMITATION OF THE STUDY

Some hindrance has been encountered in carrying out this research work such as;

1.     Many construction firms. Consultant quality surveyor, estate valuers or firms and land lords were relevant to disclose relevant information or data.

2.     Hostility of some building materials merchants or dealers to release information during market and surveyor and field intervals.

3.     Financial and time constraints also constitute some of the limitation, but the research was able to over come them.

1.11 RESEARCH HYPOTHESIS

H_o:   Rise in oil price, the increase in oil demand in the past 10 years nearly 50 percent increase, lead to the rapid increase in oil price

H_i:    High demand for housing construction, the categories include high demand from (a) Nigeria citizens, government housing project and government public project.

H_o:   Low housing supply, these categories include the increased annual demand for housing unit and the low supply of housing unit.

H_i:    Speculative purchase of undeveloped lands, these categories includes corruption in the selling process of undeveloped land.

1.12 DEFINITION OF RELEVANT TERMS

Price: It refers to change cost and expensive or expenditure required in buying or maintenance price is the quality of payment or compensation given one party to another in return for goods or services.

Building: Building is a manmade structure with roof and walls standing more or less permanently in one place.

Materials: The substance or substance of which things are made of composed. Stone is a durable raw materials or anything that serves as a crude or raw material to be used or developed e.g. wood pule is the raw material.

REFERENCES

Aminu, A.A and Jagboro, G.O (2002). “The effect of construction delays on projects delivery in the Nigerian construction industry”

Isaidinso, E.I. (1988). “The needs and problems of the building industry in Nigeria a qualitative surveyor view”. Research Institute Seminar, Nigerian Building and Road Research Institute.

Fisk, E.R. (1997). “Construction project administration, 5th edition prentice Half, New Jersey.

AN ANALYSIS OF VARIATION ON RENTAL VALUE OF RESIDENTIAL PROPERTY IN NASARAWA TOWN

AN ANALYSIS OF VARIATION ON RENTAL VALUE OF RESIDENTIAL PROPERTY IN NASARAWA TOWN

ABSTRACT

This project work has said to be variation in rental value of residential properties among neighbourhoods in Nasarawa, Nasarawa State, Nigeria. The research employed the use of questionnaires as a method of data collection. A number of 175 questionnaires were administered out of which 100 were returned. The data were collected from the landlords, tenants and Estate agents of the selected properties in the neighbourhoods. The data collected were analyzed using tables. The findings indicated that amongst the selected neighbourhoods in Nasarawa, Tammah in terms of tenement has the highest rental value base on the fact collected, also one of the factors contributing to the variation in the rental value of residential properties was found to be infrastructure in the neighbourhood. It is therefore recommended that government should provide infrastructure in other neighbourhoods to attract rental value in other neighboorhoods.

CHAPTER ONE

1. INTRODUCTION

Shelter is a basic necessity in life. An individual can Satisfy this need by either occupying his own (owner’s occupier) property or renting another person property. In our traditional society the need for shelter is mainly met through the first alternative that is owner occupation. With the emergency of urban centers, the situation has changed. Many people are no longer about to own property because of the difficulty in the acquisition of land and the high cost of building construction. Therefore, they are left with the alternative of renting other people’s properties in order to satisfy their need for shelter. Consequently two classes of urban resident have emerged, the landlord and the tenant under this arrangement the tenant pays to the landlord a certain amount of money in consideration for his use of the landlord house. This amount is properly known as rent.

All over the world, renting offers a more affordable way for many people to gain access to accommodation. The provision of adequate housing is a very integral part of the needs of every society and has great value for individual, families, communities and society at large (Opoku and Abdul-muhmin, 2009). Revenue from rent serves as the main source of income for many local government, real estate developer and home owners. The attractive income from rent have led to the conversion of various structures into apartment for rent.

In urban area due to location advantage (for examples prime location) which some properties offers above others for residential uses, rent tend to vary on account of the type of use which a property can offer.

1.1       STATEMENT OF PROBLEM

Location of economic property has been a difficult concept to understand. Although the primary objective of residential properties is for habitation, shelter and comfort, the demand for land is a reflection of the profitability or utility derivable from it use. The greater the benefit to be obtained from a particular use, the higher the rent that the user will be willing to pay for it.

There appear to be wide ranging differences in the levels of rent passing on residential property in Nasarawa.

This research is seeking to find out what are the causes of spatial variation on rental value of residential property in Nasarawa.

1.2       AIM AND OBJECTIVES

AIM

The aim of this research is to analyze factors that influence variation of rental value on residential property.

OBJECTIVES

1. To determine the types of residential property in Nasarawa town.
2. To assess spatial variation on rental value of residential property in Nasarawa.  
3. To examine the factors that influence spatial variation in rental value of residential property.

1.3       RESEARCH QUESTIONS

1.   What are the types of residential property in Nasarawa town?

2.   What is the assessment of spatial variation in rental value of residential property Nasarawa?

3.   What are the factors influencing the variation on rental value?

1.4       SIGNIFICANCE OF THE STUDY

This research will help tenant to understand the reason why rent vary or defer.

It will enable the estate developers to understand how occupier thinks, also thing they consider before acquiring property for certain use.

This can also serve as a reference material for future use by student and researchers.

1.5       SCOPE AND LIMITATIONS OF THE STUDY

            SCOPE

The research work is restricted to selected property such as (residential property) comprising block of flat and tenement in Nasarawa town which limited to some selected neighbourhood such as Tammah, Shagari, Oversea and Millionaire’s quarter.

LIMITATION OF THE STUDY

This study was greatly affected by certain constrain which became unavoidably within the time limit for which the research was conducted.

1. Time constrains: The research was constrained by time limit. This posed a trait to the wide coverage intended in the cause of this study.
2. Cost factor: It is unusually that the prevailing economic conditions posed to a great extent, the problem of procuring the whole material information needed and other relevant statistical data.

1.6       HISTORICAL BACKGROUND OF THE STUDY AREA

Nasarawa town was brought up from small settlement into a prospective town of about 49,760 inhabitants. The history of Nasarawa shows that Malam Markama Dogo was the person that conquered Nasarawa town, so also the history of Nasarawa would not be complete without mentioning Keffi because the two are usually considered as one.

Tammah was a small village having a population of about 600 people and Gbaggi are the founder of Tammah and Egon people came there as a result of farming and few Bassa were also there with Gbaggi people before the arriver of Egon so luckily as the Federal Polytechnic was established in Nasarawa.

GEOGRAPHICAL LOCATION

Nasarawa town which is geographically located approximately between latitude of 646 and 739 and longitude 16N 2W. The town consist of little plan using evaluation of 600fit in the southern to above 400fit at the North East.

The town is located at 40km south Keffi town along Lokoja road. The ethnic group that could be found in Nasarawa town are Hausa, Gbaggi, Geda, Basa, Gwandare and host of others.

OCCUPATION

The geographical location of Nasarawa with the Savannah belt and vegetation favours agricultural production, as one of the economic activities of the town. The fertility of the soil and climatic condition sustain production of seed, vegetable and root crops. These agricultural crops include tomatoes, spinach, cassava, maize, yam, millet, garden egg, beans, geanicorn etc.    

EDUCATION

Nasarawa town may be referred to as a home of learning, comprising numerous primary and secondary schools amongst which are Government science school, Foundation. It also consist of tertiary institution, i.e.  the Federal Polytechnic Nasarawa.

RELIGION   

The town consists of two main religion set, namely; Christians consisting 47% and Muslim consisting 50% and the remaining 3% consists the traditional worshipers. 

EVALUATION OF LAND USE AND DEVELOPMENT CONTROL IN NIGERIA

EVALUATION OF LAND USE AND DEVELOPMENT CONTROL IN NIGERIA

(A case study of Area Council Bwari, Abuja)

ABSTRACT

The aim of this project is to evaluate land development control. In other words, the important of land to mankind and its various uses, which are residential, commercial, recreational, industrial, education, communication land etc. this calls for the control of various development purpose. The government promulgated various laws to regulate the land use planning, building by law and zoning regulation for an important research. Several forms of data collection methods and analysis are bound to be used therefore, this project work have comprehensively three sections which can be ascertain in this project work.

CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

In ordinary language, the term land refers to the physical surface of the earth or in everyday use in the part of the earth’s terrain on which man plant and animals live on. Land in its totality is more than the earth’s outer surface that gives sustenance to plants and animals.

Conceptually land has various meaning, the term “land” suggest different things to different people depending upon their outlook and their interest at that moment. According to Balowa (1985) “land” could apply a nation an ordinary person or political division of the earth surface. Legal concept of land as in section 205 of law of property act 1925 define it to include, “land to tenure and mine and minerals whether or not held apart from the building, other incorporated here determent benefit right, privilege in or over or deprived from land”.

To this end, town and cities are precious possession, of mankind. A town or city does not know its own grow to become efficient, but like a child, its master plan or comprehensive development plant to ensure the orderly grow and land down guide line for development of our cities, town and villages cannot be over logged (the master plan serves as a frame work and provide guide lines for development or developing a city or town in a planned and orderly) it is therefore, the mean to achieve the goals and aspiration of the community at large. The need for evaluation of land use and development of land development control is very vital or important. In other to ensure that real estate developers and owners of landed property use their land and building in conformity with approval scheme as contained in the master plan of the town.

Thus, the government enforces law and regulations guiding land use and development control in order to regulate the growth of towns in a planned and orderly manner, for the purpose of functional efficient and visually attractive physical environment. 

1.1   STATEMENT OF PROBLEM

Despite the effect of the planning development in Federal Capital development Authority (FCDA) to ensure and efficient control use in Bwari Satellite town, they keep on deteriorating.

This is compounded by:

1. Land use
2. Inadequate social amenities facilities.
3. Poor housing quality.
4. Poor accessibility of houses.
5. Sanitation.
6. Congestion and
7. Lack/inadequate control of development.

It is in view of these noticeable problems that promoted this study so as to uncivil, to constrains and proffer possible and useful suggestions.

1.2   AIM AND OBJECTIVES

To evaluate the existing method of controlling development and land use in Bwari Abuja with view to ascertain problems associated with the method.

OBJECTIVE

1. Review literature on control land use and development control.
2. Examine method adopted controlling.
3. Examine the part term of development and land use in the study area.
4. Identify problem militating against effective control of land use and development of Bwari.
5. Suggest possible solution to the identified problem.

1.3   SCOPE AND LIMITATION

This project concerns the evaluation of land use and development control at Bwari, Abuja. The researcher consider it fit and efficient to narrow the study to only Bwari satellite town in the Federal Capital Territory Abuja to allow a defiled and through activities and provide for these activities would eventually be a higher room for the emergency of a city .

The city and its environs is expected to grow gradually to pa balanced community within the frame work of other world communities. To realize such dream there must be control and monitoring overall development and component part that are to take place.

To this end the expectation are Nigeria and indeed that of the world of capital city that will be developed to standards almost equal to those of development cities such as England, Japan, United State of America, Portland, Brasilia in Brazil, in other words Abuja as a new to has a lot of opportunities for planners, estate surveyor land space designer etc. I exhibit their require to lapse as to avoid over concentration of people and economic/social activities.

Constant control and monitoring of development is essential for the city the use of land can afford the public health, safety and welfare. The project word therefore does not cover other satellite town within the FCT areas TES not easy to gather the data use for reluctantly is always there when it comes to give vital information that will be useful to the research work. There was also inadequate and time factor.

1.4   METHODOLOGY

These are obtained through administering of questionnaires. Formal and informal interview and discussion with some selected people who are not able to fill the questionnaire.

QUESTIONNAIRE

The question was designed to assist in the writing or project. The questions were asked to get individual contribution from the development control, land use control, engineering department operation (demolition) logistic (tiles) all in the development control and settlement division zone 6 Abuja among other surveyors, architect and builders in Bwari Area Council of Abuja tenants in the study area.

PERSONAL DISCUSSION AND INTERVIEWS

This involved oral interview with some staff of development control who refused to receive the questionnaire, estate surveyor and valuers, tenants and also the private and public developers within the Bwari council of Abuja on land development control in Bwari, their response was remarkable. 

PAMPHLET/JOURNAL/TEXT BOOK

Data were collected through pamphlet, journals and past project relating to the information needed for this project these include published and unpublished books which are relevant to the topic to enhance a good presentation of the project.

POPULATION SAMPLE

One hundred questionnaire were printed consisting of the set. Sets contain 30 question directed to the building industry (Values 20 question to the Bwari area council, 30 were allocated to set c which to development control zone 6 Abuja under the umbrella of (FCDA) Abuja. For the purpose of analyzing data, table would be used to enhance better understanding of the collection also description method presenting and analyzing the data too.

AN ASSESSMENT OF THE ROLE PRIMARY MORTGAGE INSTITUTIONS IN MORTGAGE FINANCING OF RESIDENTIAL PROPERTY IN ABUJA

AN ASSESSMENT OF THE ROLE PRIMARY MORTGAGE INSTITUTIONS IN MORTGAGE FINANCING OF RESIDENTIAL PROPERTY IN ABUJA

ABSTRACT

This study assesses the role of primary mortgage institutions in mortgage financing of residential property in Abuja. The specific objectives are: to determine the mortgage facilities offered by primary mortgage institutions, to examine the applications and approvals for purchase, rehabilitation and construction of residential property and to assess the role of primary mortgage institutions in mortgage financing of residential property in the study area. The researcher adopt the use of questionnaire, observation and personal interview to gathered relevant data from the respondents while tables, simple percentage and descriptive statistics were used for data presentation and analysis. The research reveals that online marketing business have a significant effects on real estate market in Abuja and therefore it should be encourage to cover all areas of real estate market such as estate agency, development, sales, and management of real estate property.  The research has shown clearly the problem of the mortgage industry in Nigeria which include: high interest rate tagged to PMI funded loans, the cumbersome process in the NHF application, the flexibility of interest rates on loans would also be of great interest to the mortgagors and would increase their interest in mortgage facilities given the assurance by PMIs that the interest rates are negotiable which creates additional costs and thus makes them un-affordable to many Nigerians. The following recommendations are presented for deliberation by the primary mortgage institutions and the mortgage industry as a whole: PMIs should be encouraged to improve their capital base in order to empower them for greater effectiveness in financing of residential property in Abuja.

CHAPTER ONE

1.0       INTRODUCTION

1.1       Background of the Study

The importance of housing finance in any economy cannot be overstressed. It drives the provision of housing which is more than shelter, since it involves all the services and utilities that make a community a livable one. Housing is also one of the best indicators of a person’s standard of living mid his or her status the society. In spite of the crucial role housing plays as a basic needs, it has remained inadequate in supply in practical all human societies’ right through history. An active and buoyant housing sector is an indication of a strong programme of national development. It serves a foundation for and the first step to the future economic growth and social development. The housing sector plays a more critical role in a country’s welfare than is always recognized as it affects not only the well being of the citizens but also the performance of the sectors in the economy.

Mortgage financing represents the genuine means of housing in the world’s developed economies and is also more of a challenge in developing countries. For example, United Kingdom has the largest mortgage market in Europe which is approximately 25% of the European market. In Mexico, the housing finance market is in a state of retrenchment, the macroeconomics environment has not been favorable to the development of primary mortgage market (Lea, 1996). The Mexican mortgage is highly segments with a verity of mortgage programs designed for different sectors.

In Nigeria, presently the mortgage sub sector accounts for >10% of Nigeria’s Gross Domestic Product which means that the opportunities that exist in this sector to boost the nation’s economy cannot be exaggerated. The federal mortgage bank of Nigeria puts an estimated over 10 million homes ‘as housing deficit in Nigeria; the implication of this is that with time the mortgage industry will also become large in the Nigeria capital market.

The mortgage industry in Nigeria involves few active players which are often banks subsidiaries and a collection of smaller inadequate mortgage institutions. These institutions include semi government agencies, mortgage banks and building societies. Mortgage financing has often been fingered as the most difficult constraints in the Nigerian housing sector. One of the major problem has been the inadequate supply of long term funds which represents the major in cans of providing mortgages. Thus, the system has relied on compulsory savings into National Housing Trust Fund (NTITF) scheme. As a result of this, effort has been made by the regulatory authorities in Nigeria to increase the supply of long-term funds for onward lending to prospective homeowners A few of these effort include the recent recapitalization of Primary Mortgage Institutions (PIvlls) in Nigeria, the pension and financial sector reform’s and the recently promoted Mortgage Backed securities on the future of investment return in the mortgage industry. This study is therefore set to conduct a thorough research into the Nigerian mortgage sector and the contribution of primal)’ mortgage institutions to housing finance in Nigeria.

1.2       Statement of Problems

There is shortage of adequate housing facilities in Nigeria towns. Lagos, for instance, has an average of 3.8 persons per room and extreme density ranging between 5 to over 7 persons per room has been recorded (Omirin , 1998). Housing problems are exacerbated by the combination of many factors. The bulk of traditional housing available in our urban centers are mainly in dilapidate conditions and unsuitable for habitation. Secondly, more houses are needed to relieve the existing overcrowding in many Nigeria urban centers. Thirdly, natural increase demand additional dwelling units to house the increasing population. Fourthly, rural- urban migration, which has assumed great dimensions during the last three decades, has aggravated housing needs of urban centers in Nigeria. In response to the great demand for houses, unplanned, and sub- standard private housing districts continues to emerge in many towns in Nigeria. These in turn led to emergence of slums. The Association of Housing Corporations of Nigeria estimated on the basis of the 2006 population census that at least 200,000 dwelling units should be provided annually throughout the federation and that government authorities should produce at least 10,000 housing units annually.

The provisions of Decree No. 3 of 1992 are intended not only to improve the operational impact of the housing financial system but also to ensure the realisation of the social economic objectives of the National Housing Policy. It has however, been observed that some of the provisions of the decree have not been sufficiently enlarged to give broad definitions to concepts such as Housing and Financing options. Other problems observed are the absence of Institutional Protection for providers of long term funds (depositors) are the lack of development of secondary markets for mortgages encourage investors and active market conditions within the sector in the Capital Market. This project intends to assess the role of primary mortgage institutions in mortgage financing of residential property in Abuja.

1.3       Aim and Objectives of the Study

Aim

The aim of this project is to assess the role of primary mortgage institution in mortgage financing of residential property in Abuja.

Objectives

To achieve the above set aim the following specific objectives shall be pursued:

1. To determine the mortgage facilities offered by primary mortgage institutions
2. To examine the applications and approvals for purchase, rehabilitation and construction of residential property
3. To assess the role of primary mortgage institutions in mortgage financing of residential property in the study area.
4. To evaluate the challenges of primary mortgage institutions

1.4       Research Questions

The following research questions shall guide the researcher in order to achieve the set objectives:

1. What are the mortgage facilities offered by primary mortgage institutions
2. What are the applications and approvals process for purchase, rehabilitation and construction of residential property?
3. What is the contribution of mortgage banks institution in housing provision in the study area?
4. What are challenges of primary mortgage institutions

1.5       Significance of the Study

This research assess the role of primary mortgage institutions in mortgage financing of residential property in Abuja. It appraises the mortgage facilities offered by primary mortgage institutions and the contributions of mortgage bank institution in housing provision in Abuja. The result of this study will relevant to property developers, investors and government authority as it will enlighten them on the contribution of primary mortgage institutions in financing housing provision and development in Nigeria.

The result of this research will contribute to the body of knowledge in provision of mortgage financing for housing development thus, will serve as research material for interested researchers who will like to further research into the contribution of primary mortgage institutions to housing provision.

1.6       Scope and Limitation of the Study

This project work covers entirely the role of primary mortgage institution in financing residential property in Abuja. The scope of this study is limited to the contribution of primary mortgage institutions in financing residential property in Abuja. .

Limitation

Its major limitation was the problem of getting information from the institution under study. There is always the fear of giving out information to the public as such, vital information needed was not readily available.

Time equally would not be left out; getting permission to leave school and the issue of finance cannot be ignored as much was spent in procuring materials. However, with fact and judicial use of the limited resources, reasonable analyses have been carried out in this research work.      

1.7       Definition of Terms

Mortgage: Cambridge English Dictionary define mortgage as an agreement that allows you to borrow money from a bank or similar organization, especially in order to buy a house, or the amount of money itself:

Finance: Merriam Webster define finance as money or other liquid resources of a government, business, group, or individual.

Institution: Institution is a structures or mechanisms of social order, they govern the behaviour of a set of individuals within a given community. Institutions are identified with a social purpose, transcending individuals and intentions by mediating the rules that govern living behavior.

Housing: Housing refers to houses or buildings collectively; accommodation of people; planning or provision of accommodation by an authority; and related meanings. The social issue is of ensuring that members of society have a home in which to live, whether this is a house, or some other kind of dwelling, lodging, or shelter.

Primary Mortgage: The primary mortgage market is the market where borrowers and mortgage originators come together to negotiate terms and effectuate mortgage transaction. Mortgage brokers, mortgage bankers, credit unions and banks are all part of the primary mortgage market.

ASSESSMENT OF THE CHALLENGES OF THE MANAGEMENT OF PUBLIC RESIDENTIAL PROPERTIES IN ENUGU, NIGERIA

ASSESSMENT OF THE CHALLENGES OF THE MANAGEMENT OF PUBLIC RESIDENTIAL PROPERTIES IN ENUGU, NIGERIA

ABSTRACT

This project work focuses on the assessment in the challenges of the management of public residential properties in Enugu, Nigeria. The objective of the study is to assess the strategies adopted in the management of public residential properties and the problems militating against its proper management. Relevant literatures were also reviewed to aid the study ranging from the concept of management to its functions. The researcher adopts the use of questionnaires and field survey in gathering relevant data required for the study. Data were also analyzed in tables using percentages. The findings of this project work revealed that, the profound and exacerbating managerial challenges in the estate is not just insufficient fund and changes of management but that of bureaucracy and  to top it all, policy and governmental changes as the major challenges that enfeeble the management of public Housing Estate. The strengthening of managerial capacity, provision of adequate fund to carryout regular maintenance without delay and redressing of political practices that undermine efficient management will go a long way in proffering solution to the above identified challenges.

CHAPTER ONE

1.0     INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Public property management is emerging as a managerial science today (Kyle and Baird, 1995). It transcends beyond the role of rent collector (Li, 1997). Managing a residential property involves establishing goals, objectives and policies and implementation of strategies to achieve those goals and objectives.

Singh (1994, 1996) posited that residential property management is an activity that seeks to control interests in property owner and particular purpose for which the property is held. Wong (1999) considers residential property management as the work carried out to manage and maintain the development including its facilities at the level that will retain or enhance the value of the residential property, create a safe, functional and conducive living environment for occupants, keep or restore every facility in efficient working order and in good state of repair, and project a good appearance or image for the development. Ismail (1996) regards residential property management responsibility as including all the necessary making to ensure the economic and physical vitality of residential property assets.

The management of public estate assets particularly poses unique form of problems ranging from over inflation of invoices, corruption, nepotism, and awarding of contract works to contractors not knowledgeable about the jobs to be carried out. This array of issues and others, calls for monetization policy of the Federal Government, where all government properties are transferred to the private entities few years ago.

Many public property developments and their post-construction management are undertaken with the intent of accomplishing immediate social, economic, financial and aesthetic benefits or returns, but they are executed with minimal concern for sustaining these benefits thereafter (Ihuah and Fortune, 2013; Ihuah and Eaton, 2013). The sustainability of public estate projects after completion is a concern that should not be overlooked in the built environment since housing estates provide shelter to human beings. It is also one amongst the four basic human needs that harmonize the other basic needs through the opportunity of providing comfort, security and safety to people.

The public housing estates prominence is sustained with appropriate post-construction management and other beneficial sustainability issues are tackled with respect to the built environment, economic growth and enhanced development in a country (Ihuah and Eaton, 2013). Therefore, the imperative to ensure that public estates returns are continually accomplished and enjoyed by all stakeholders should be the objective for any development organisation to achieve.

The challenges be devilling management of public estates vary with different context and analytical perceptions. The problems of chronic financial crisis, poor maintenance, lack of manpower and strained relationship between public estates residents and the management has been mentioned by (Davidson 1999) as recurring themes of public estate management issues, while Okpala (1977), identified bureaucracy corruption.

This implies that, there is need to look at the management of existing Public Housing Estates in order to restore them back to habitable condition through regular management and maintenance so that the intensity building management becomes higher with its age especially in the face of climatic change and its negative and adverse effects on the building itself, the facilities and the physical environment for sustainable development.

This project work therefore, examines the management of public estate in Niger State with a particular interest in Zuma Housing Estate Suleja with a view to identify the challenges confronting the effective management practice suitable for the Estate and other public Estate in Nigeria.

Public estate management is also the management of government property, equipment, tooling and physical capital assets that are acquired and used to build, repair and maintain the public estate. Property management involves the processes, systems and manpower required to manage the life cycle of all public residential property as defined above including acquisition, control, accountability, responsibility, maintenance, utilization and disposition (Njoku, 2006).

According to Ebie (2012), duties involved in public property management generally will include a minimum of these basic primary tasks

1. The full and proper screening or testing of an tenants/applicant’s credit, criminal history, rental history and ability to pay.
2. Lease contracting or accepting rent using legal documents approved for the area in which the property is located.
3. Mitigation and remediation regarding any maintenance issues, generally within a budget, with prior or conveyed consent via a Limited Power of Attorney legally agreed to by the property owner.

There are many facets to this public property (estate) management, including managing the accounts and finances of the real estate/residential properties, and participating in or initiating litigation with tenants, contractors and insurance agencies. Litigation is at times considered a separate function, set aside for trained attorneys. Although a person will be responsible for this in his/her job description, there may be an attorney working under a property manager. Special attention is given to landlord/tenant law and most commonly evictions, non-payment, harassment, reduction of pre-arranged services, and public nuisance are legal subjects that gain the most amount of attention from residential property managers.

1.2     STATEMENT OF RESEARCH PROBLEM

According to Bello (2008), residential property is more than a mere shelter; it includes all facilities within and around it, embracing a bundle of services which entails both product and process. Management of public estate embraces in all ramifications the maintenance and development process, be it economic, social, physical). In fact, management of these properties has been subject of focus by researcher in recent times based on the cumbersome nature of the process. The problem of poor management of public estate is a global phenomenon and the severity of the problem differs from one nation to another and ranges from lacks adequate funding since it is tagged a government property, lack of routine inspection and unskilled management staff due to instability in management from the Government, changes in government, delay in carrying out maintenance work on the estate due to bureaucracy corruption and questionable character of staffs, Strained relationship between public estates residents and the management. e.t.c. However, the researcher seeks to evaluate the management of public estate in Niger state.

1.3     AIM AND OBJECTIVES

1.3.1  Aim

The aim of the study is to assess the challenges of the management of public residential property in Enugu, Nigeria.

1.3.2 Objectives

To achieve the above aim the following objectives will be pursued;

1. To examine the problems of public residential property management in Enugu.
2. To analyze the prospects of residential properties management in Enugu.
3. To examine the challenges confronting the effective management of public estate.
4. To identify and examine the strategies adopted in the management of public estate.

1.4     RESEARCH QUESTIONS

The following questions are very pertinent to the achievement of the objectives of this study.

1. What are the strategies adopted by the Authority concerned for the management of the public estate in the past?
2. How effective are these strategies?
3. What has been the level of maintenance in the Estate?
4. What are the problems of public estate management in Niger state?

1.5     SCOPE OF THE STUDY

The study addresses the assessment of the challenges of the management of public residential properties in Enugu, Nigeria and it is restricted to public residential properties in Enugu.

1.6     SIGNIFICANCE OF THE RESEARCH

Public residential properties requires maintenance in order to enhance their values and life span. After the development of public estate, the problem of management set in with few years of completion, other problems began if adequate and appropriate strategies are not employed.

This research will enlightens both government and the general public on the need to engage the services of professionals (Estate Surveyors and Valuers) in the management of public estate, so that the aim of developing such Estate will not be defeated.

The outcome of this study will educate the general public on the problems and prospects of managing residential properties in Nigeria emphasizing on its proper management and some other management challenges which will form a guide for estate managers in decision making.

This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

1.7     DEFINITION OF TERMS

MANAGEMENT: Allison (1967) defined management as the selection of goals and the planning, procurement, organization and control of the resources for their achievement.

MAINTENANCE: Lawal M. (2010) defined maintenance as the whole range of operation necessary to preserve a building with its finishes and fittings so that it continues to provide the same facilities and services which it did at its initial stage of development.

HOUSING: Housing extends beyond the concept of shelter. In the word of Abraham (1980) in his book “Housing in the Modern Market” it is not only shelter but part of the fabric of the neighborhoods life and the whole social milieu. It touches on many facts of industrialization, economic activities and development.

PUBLIC ESTATE: Are land and building owned and directly managed by public authorities and those rights of control which public authorities exercise over the estate of the private owners.

ESTATE: Udechukwu (2006) defined estate as “A legal entity denoting the character and quality of right that an individual or individuals possessed on a property.

HOUSING ESTATE: In the word of Essien G.A (2012) in his Lecture Note “An Approach to Property Development II (Vol. 3)”. “Is an area of land on which many houses are built either by private enterprise or by a public authority”.

DEVELOPMENT: Is the process of generating latent values in land or creating benefits there from by incurring on it costs in the form of labour, capital or management skill (Umeh, 1983).

PUBLIC DEVELOPER: Nathaniel (1979) cited that public developer deal directly  with government involvement in the provision of housing, public properties (Estate) are therefore owned, controlled and managed by Federal, State, Local Government and other public bodies which are set up and functioned under state and their aims is usually based on political, social and economic ground.

OBSOLESCENCE: Obsolescence is refers to as the wear and tear of the fabric of a building. It is a loss in the usefulness of a building and is a deficiency in design layout and equipment (Lawal M. 2010).

SLUM: Adetoro S.A and Mbazor D.N (2007) defined it as “An area of advanced blight condition usually requiring cleaning or re-building as the most effective corrective action. It can also be said to be a poor dirty crowded area in an urban area.

BLIGHT: Babatunde J. (1996) described blight as “Premature obsolescence and physical deterioration or other factors that has become undesirable for or impossible for normal development. Blight ranged from simple to complex.

1.7     STUDY AREA

Enugu State is in the South-east geo-graphical zone of Nigeria. It was created on August 27, 1991 with Enugu city as its capital.  The state derives its name Enugu (Hill Top) from the capital city which was established in 1909 as small coal mining town.

From Enugu the British administration was able to spread its influence over the southern Province of Nigeria. The Colonial past of Enugu is today evidence by the Georgian building types and meandering narrow roads within the residential area originally reserved for the whites, an area which is today called the Government Reserved Area (GRA.)

From being the capital of the southern Province, Enugu became the capital of the Eastern Region (now divided into nine States), and Capital of the defunct Republic of Biafra, thereafter it became the capital of East Central State, Anambra State, (old) Enugu State, and now the present Enugu State through a process of state creation and diffusion of administrative authority.

A traditional Enugu man is hospital, warm and enterprising. The State is predominately occupied by the Igbo ethnic group with some pockets of Igala speaking communities of Ette in Igbo-Eze-North LGA, Ogurugu and Ojjor in Uzo-Uwani LGA respectively.

Enugu State shares boarders with Abia State and Imo State to South, Ebonyi State to the east, Benue State to the northeast, Kogi State to the North West and Anambra state to the west.

The state is located in a tropical rain forest zone with humid climate. The mean daily temperature is 26.7 °C (80.1 °F). As in the rest of West Africa, the rainy season and dry season are the only weather periods that recurs in the State.

The State Government and the Local Government are the two levels of government in Enugu State as in all other states of Nigeria. Sullivan Chime is the current Executive Governor of Enugu State. He was first elected in April 2007 and was sworn into office on May 29^th, 2007. He recontested the position in 2011 and was re-elected. The governor has a group of commissioners, who oversee government portfolios such as Health, Housing, Education, works etc.   Both the governor and the commissioners form the Executive Council of Enugu State.  The seat of government is based at the Government House, Enugu.

There are 17 Local Government Area in Enugu State. These are Aninri, Agwu, Enugu East, Enugu North, Enugu South, Ezeagu, Igbo Etiti, Igbo-eze North, Igboeze South, Isi-Uzo, Nkanu East, Nkanu West, Nsukka, Oji-River, Udenu, Udi, Uzo-Uwani.

THE APPLICATION OF COMPUTER IN REAL ESTATE APPRAISAL

THE APPLICATION OF COMPUTER IN REAL ESTATE APPRAISAL

ABSTRACT

The use of computer as an electronic device have been embraced in all field of human endeavour ranging from banking, engineering marketing, construction with real estate appraisal inclusive. This paper is centered on the application of computer in real estate appraisal.    The computer is increasingly used by real estate appraiser for various purposes. The word processing software permits the appraiser to write up the individual property appraisal report. The same or different software permits the appraisal the appraiser to fill in appraisal forms with the requirement information that is found in the appraiser’s files and acquired from other sources. Computer spreadsheet software allows the appraiser to calculate multiple regression coefficients of correlation after data from the appraisers’ files is entered into the software. Blocks of residential single family are inserted into the program to see what housing characteristics have the most effect on the resulting appraised value. Property tax appraisers with a mass appraisal to accomplished actively use computer multiple regression models. At least part of the appraiser’s wealth of information that comes from a daily inflow of data from various sources may be filed in the computer database. The computer has become a necessity rather than a luxury or an occasionally used piece of office equipment.

INTRODUCTION

The typical professional appraisal of a generation ago would be flabbergasted by the inroads made by electronic media in the modern appraisal office. Even in the past ten years, the  manner in which appraisal data are accumulated and analyzed and the way that the appraiser’s estimate of value is transmitted to the client have undergone a transformation that is still ongoing. With the increasing availability and range of use of small, easily programmed office computer, the appraisers must be acquainted with a variety of appraisal-based computer applications. A few of these are highlighted below, with suggestions for the equipment necessary to keep pace with the developing electronic products.

THE COMPUTER: Even the smallest real estate or appraisal office can now take advantage of the computer’s storage and problem-solving capabilities. What kind of computer is best for the appraisal office? That depends on the nature of the appraisal work, the complexity of the assignments the appraisal will undertake, and the size of the appraiser’s budget.

It is best to tackle the question of what computer to buy by working backward; that is, the appraiser should begin by considering the requirements of the software that will be used in everyday practice. The appraiser may have already decided to buy one of the major appraisal software packages, which could cover everything from case tracking, including data collection and report preparation, to management of the appraisal office, including bill and staffing. Should the computer be “IBM-compatible” (One that meets the operating specifications designed for IBM, Inc., products, referred to as PCs, or personal computer). Macintosh computers are often favoured by design and publishing firms. There is excellent mac-based software available for the mot appraisal functions – for example, word processing, spreadsheets, databases, office management, communications, graphics, photo editing. Etc. There also are very sophisticated Mac programs for all the standard forms used for residential and general appraisaing; however, there are more choices of software vendors for the PC. The beginning appraiser should follow the recommendations of the managing appraiser who will be reviewing his or her work to ensure compatibility. Generally the new appraiser can be included under the managing appraisers’ current software license for a relatively small fee.

THE APPLICATION OF COMPUTER IN REAL ESTATE APPRAISAL

Most likely, the appraiser will need a modern, a computer – based telephone, to gain access to the wide range of information available on the internet. In addition, the appraiser may want to establish an electronic link to one or more lenders, which would require a computer with sufficient memory in addition to a modern capable of making such connections efficiently. Of course, the minimum capability required by today’s computer applications only establishes the baseline requirement for the appraisal office. The difficulty is in deciding how far beyong the minimum the appraiser should go.

Some state appraiser licensing offices, as well as the major appraiser societies, offer introductory classes or seminars in computer technology and application for the real estate appraisal. Because of the rapid development of more powerful computers, as well as new software to take advantage of the computer’s growing data-handling capabilities, attendance at one of these classes should be useful for the experienced computer users and the neophyte. The computer  hardware and software purchase decisions needn’t be made in a vacuum.

By seeking experts advice, and dealing with one of the major computer manufacturers, even the beginner can take most of the trauma out of the purchase decision. With the right information, the computer buyer should be able to invest in a system that will be adequate for three years of services. That means that the system should not only meet the appraisers’ immediate needs but be expandable to cover reasonably expected additions of equipment and software.

The most important features of the computer purchase will not be apparent until after a problem arises. Who is responsible for fixing the computer when something goes wrong, and where will the repairs be made? IF the computer system is purchase with an intended period of use of three years, the most desirable warranty or services contract will be one that provides for three years of on-site maintenance, to be performed within a stated time of the request for service. Such a warranty may require an additional fee, but will help reduce a major source of stress for the computer owner. After all, when an appraiser is relying on a functioning computer system to produce and transmit appraisals, a non functioning machine means that the appraiser is virtually out of business.

What price can the appraiser expect to pay for a system capable of handling all, of the operations mentioned above? That depends on many things: the systems motherboard, the command system, which determines how fast the system can operate; RAM, or random access memory, which determines how many operations the system can perform at the same time; hard drive memory, or data storage capacity; a monitor of adequate size and image definition; and the specifications of the modem, DVD/CD drive, and other peripherals. The good news is that prices continue to fail. Expectations are that this year’s system will have much greater speed and capacity and yet cost less than last year’s system. A basic “office suite” of software applications, including word-processing, spreadsheet, graphics, and mailing List capability, is likely to be included in the price of the basic system. The cost of appraisal-based software applications will depend on the appraiser’s needs and on how much time the appraiser is willing to spend searching for the best price available.

THE PRINTER

Today’s appraisal software not only allows a user to complete any of the numerous standard appraisal forms, it provides the form itself. The key to making a professional presentation is the quality of the printer used to print out the completed term. Given the dramatic drop in prices of laser printer, there is no substitute for a laser printer capable of producing six or more black-and-white pages per minute, at a resolution of 600 by 600 dpi (dots per inch). The price for such a machine used to be around S1.000, but they are now available for:$500 and up. A useful second printer is a color ink-jet machine that can produce more attractive renderings of photographs. It has become possible to purchase one for well under $500.

THE BACKUP SYSTEM

 As with any serious computer use, the appraiser should ensure that no data are lost in the event of a power failure or mechanical malfunction. The backup system properly consists of two components: (1) a battery (not just a power surge protector) to which the computer is connected to provide a secondary power supply – in essence, a cushion of time during which the computer can be shut down in the event of a power failure without loss of data and (2) a second computer memory (hard drive or cartridge), installed inside or outside the machine, that can b used (and refreshed periodically) to keep a copy of everything that is stored on the computer.  It should be possible to buy both components for a combined, price of less than N75,000.  Note: The backup system disk or cartridge should not be left in the machine or it will suffer the same fate as the main system in the event of power toss or malfunction. A final word of warning: During an electrical storm, it may be prudent to shut down one’s computer completely to avoid risk of data Loss. There is no backup system yet invented that will survive a direct hit, or even a near- miss, from a bolt of lightning.

THE INTERNET

 From its beginnings 40 years ago as a telephone-based method of computer information exchange for the military, what we now term the Internet has emerged as a major method of wor1dwde communication.

Efficient access to the resources available via the Internet requires a modern capable of transmitting 28,800 bps (bits per second) or better and subscription with a service provider that provides the initial access link. Once one is online (has gained access to the Internet), one can reach government, educational, and private sources of information around the globe. One can also be a recipient of communications in the form of electronic mail, referred to as e-mail.

Current predictions are that use of the Internet will only increase in coming years. Its use for appraisers is growing exponentially every year, as more and more data sources, including multiple listing services, provide online access to their databases. The number of government offices allowing access to public records is also growing. Information on national, regional, and local economic, employment, and other trends is readily available. There are a growing number of services specializing in data on various types of commercial and residential properties.

The cost of access to the Internet is surprisingly modest. Some Internet providers (such as America Online) provide their subscribers with access to numerous newspapers, magazines chat availability shopping, and other services at a base monthly rate for a specified number of hours of access to the service, with an hourly rate for each additional hour. Unlimited Service is available for a higher monthly fee, Other service providers provide access to the Internet, but no additional programming.

Geographic Information Systems (GIS)

 Satellite based mapping systems have been in use for as long as satellites have orbited the earth. From their initial military and weather technology based applications, mapping systems based on Latitude and longitude are now entering the commercial market place. The utility of the maps. Once available online from the United States Geological Survey (USGS), has been greatly expanded. Commercial services now provide (via computer disk or the Internet) reference maps that provide overlays of national, regional, and local data and are capable of incorporating the appraiser’s own data The cost of such maps will depend on the source and method of transmission.

Electronic data interchange (EDI).

The present trend toward consolidation of financial institutions has resulted in fewer users of appraisal services, particularly in the single-family residential mortgage loan marketplace. The lenders that now dominate the field arc moving increasingly toward the most direct method of communication of property valuation – electronic data interchange, or EDI. An electronic link between the lender and the appraiser via modem allows a computer in the appraiser’s office to transmit the required information almost instantaneously. Using EDI, the appraiser no longer needs to print hard copies of the report that includes the basis for the estimate of value. Now the appraiser enters the necessary information into the computer and then uses the computer’s modem to connect to the lender’s computer and relay all of the required information with the speed of a telephone call. The computer software that allows for such efficient transmittals must be customized to meet the lender’s requirement, but the lender may provide the software at little or no cost to the appraiser.

THE CAMERA

No modern appraisal office is complete without a digital camera that can be used to make and transmit images without the need for film or printed copy. The digital camera may be no larger than the typical 35-milimeter camera used in the past. It will have a view finder, lens, and built-in flash. Within the camera body, however, is a miniature version of a computer, capable of receiving images, recording them in digitized (computer-readable) format on a memory chip, and. releasing them to a printer and / or another memory device, such as a computer hard drive or disk. Once the images have been downloaded – that is, recorded and/or stored elsewhere – they can be erased from the camera’s memory which can then be used to record new images.

The digital camera uses no film and requires no professional processing. The number of images the camera is capable of recording and storing depend:; on the size (the amount of memory) of the chip inside. With a digital camera, the appraiser can import photographic-quality images directly to an appraisal report. If the report itself is transmitted electronically, the photos are incorporated within the report, to be viewed on the recipient’s computer monitor.

A digital camera with enough memory for hundreds of images (depending on the degree of resolution desired, with higher-resolution photos requiring more memory per image).

USE OF TECHNOLOGY:

In recent years there have been many references to use of “artificial intelligence’ in the appraisal process. The use of appropriate resources, including computers, can help an appraiser function more efficiently and more accurately, but these tools serve only as aids to the appraiser. There never will be a substitute for the skilled and informed judgement of a professional appraiser.

CONCLUSION AND RECOMMENDATION

The skills required of the professional appraiser touch on most areas of real estate practice. The best-qualified appraiser will have some at the abilities of the economist, city planner, surveyor, local estate developer, builder, and broker. Familiarity with appraisal-based computer applications is rapidly becoming a practical necessity however impartiality objectivity, knowledge of appraising fundamentals, and the quality of judgment that comes only with experience are the professional appraiser’s chief credentials.

The application of computer in real estate appraisal have contributed immensely to the efficiency and productivity of real estate appraiser and the estate survey and valuation profession. Therefore it pertinent for all valuers and estate firm to have access to this modern tools “Computer” and harness its enormous benefits so as to increase professionalism and productivity.

REFERENCES

Adair, Alastair, Mary Lou Downi (1996) European Valuation Practice. Theory and Technique. London. E & FN Spon, publisher.

Baum etal (1995) Property Investment Appraisal. 2^nd edition, London:  Routledge publishers.