ENEMS PROJECT: Property

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Friday, 14 January 2022

THE ESSENCE OF FACILITY MANAGEMENT ON PROPERTY DEVELOPMENT

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

It is a broad knowledge that one of the feature of facility management which distinguishes it from other forms of investment portfolio, is a serious requirement of management in recent times this peculiar management function has continuously undergo tremendous transformation brought about by the agglomeration of estate and massive involvement in property by a number of land dealers, agencies and financial institutions

Facility management is an act of intermediation between owners and occupies on issues affecting the parties arising from ownership and occupation of buildings. It is a conscious process of guiding and tailoring an investment in land in to profitable venture. Its main concern is the optimization of the owner’s investment Scarrttet (1995). The practice is however, prone to a lot of problems which are capable of preventing or at best reducing the chances of realizing anticipated investment objectives. In other words, the achievement or success of the art of nursing and directing maximum return is a function of how well a property manager is able to effectively prevent and \or overcome seeming obstacles in the course of the discharge of its duties. As different from commodity, the deliverable in facility management is service. The property manager advises the client concerning the general client policy regarding cooperation and compensation and as to the best and appropriate choice of tenants for the building.

Several schools of thought have defined Management in different ways but no single definition is accepted as superior and final. According to (Officha, Onuemesi, & . Akanwa, 2012) In their work the problem and prospect of open space management in Nigeria view Management as concerned with efficiency in the conversion of opportunity and resources into wealth. It is a vital aspect of realization of set of goals and objectives of any organization, institution or government especially in the case of those in charge of development of open spaces and it is the motive of the park planning process for the effectiveness of the recreational area.

Akpala (1992) in (Officha, Onuemesi, & . Akanwa, 2012), Confirms that management refers to people and also the process by which people do things. However, it is observed that inadequate recreational opportunity could be made productive with good administration, but that the best result could not be achieved without it. Allsopp (1979) in (Officha, Onuemesi, & . Akanwa, 2012), define management as the selection of goals and the planning, procurement, organization, coordination and control of the necessary resources for achievement. It is concerned with the dynamite of circumstance and activity as it is generally motivated by the need to economize in the use of resource and the time in activating predetermined objectives.

(Ngene, 1990), in his study state that good management demands that the needs, aspiration and the interest of people to be served should be taken into consideration.Planning is for people and recreation must be built around the desires and interest of people for effective participation on the park users.

(Butler t. , 1940), opined that management should extend to the relationship between employers and the employees in, order; to accomplish their set purpose. They must be one in mind and purpose. Poor relationship result in lack of enthusiasm on work, indifference in a half heated effort and labor unrest. These result in failure to understand the motives that makes man work, such as their hopes, ambitions and prejudices. Furthermore, design and management are related.(Hussain, 2009) Defines facility management as the process by which an organization ensures that its building system and services support core operation and processes as well as contribute to achieving its strategic objectives in changing condition.

The widen view of facility management has become increasingly important with today’s changes in organizational structures, corporate styles, technological development, environmental issues and employment pattern.

Thus facility management is far beyond looking after building and its facilities. (Olufem,i. D. durodola; Caleb, A. Ayedun; and Akinjare, O. Adedoyin, 2012) in their work the beneficial application of facility management in hotel organizations in south-western Nigeria their major findings are from customers’ perspective, national stock of hotels worthy of presentation ranked first, followed by improved patronage of hotels, the quality services while neat environment ranked seventeenth. There is perfect correlation between the views of organizations and facilities managers but no correlation between the views of either the organizations or facilities managers and the customers using Spearman’s Correlation Coefficient analysis. It is also noteworthy to state that this independence of opinion reflects the general tendency of egoistic predilection in Nigeria. However, none of these benefits can be disregarded as they are directly or indirectly supported by literature such as Aakers (1984), Bevan (1991), Ahmad (1998), Barrett (2000), Brackertz & Kenly (2002) and Alexander (2003).

(Hussain, 2009) Defines facility management as the process by which an organization ensures that its building system and services support core operation and processes as well as contribute to achieving its strategic objectives in changing condition.

(Ojeme, 2009), While commenting on the state of sports facilities in Nigerian Universities, stressed that, sports facilities in Nigerian Universities are rickety, perhaps with the very insignificant exception of Ahmadu Bello University, University of Port Harcourt, University of Lagos and University of Benin. The University budget in a year cannot even lift a single sport to a meaningful level and when applied to the multi-NUGA sports programs it amounts to nothing added. He further opined that the Nigerian University system is a lame duck, unable to make any significant impact in the nation’s quest for sports excellence. Contributing further on the place of the provision and maintenance of sport facilities for effective sports programme delivery, Mgbor and Anyanjor, (Mgbor & Anyanjo, 2005); and (OJeme, 2005), all emphasized on the relevance of the presence, adequacy, supply and maintenance of equipment and facilities to the smooth operations of any sports and fitness programs.

From the above scenario, it may not be out of place for anyone to postulate that there may be impediments towards the realization of this thrust placed on Nigerian Universities. This study therefore is an attempt to assess the management of recreational facilities in Nigeria public spaces especially in Abuja with a view to proffering suitable solutions.

The practice has advanced in many of the developed countries but still at its elementary stages in Africa and other developing economies. Efforts are still being made to construct a boundary for the activities or functions executed through the office of Facilities Management professionals (Ogbeifun, 2011).

1.2 STATEMENT OF PROBLEM

One of the most common problems of maintenance is the aspect of time from which it has been as defined probability that an item will be restored to specified conditions within a given period of time when maintenance action is performed in accordance with prescribed procedure and resources (victor, 2004). Facility which despite adequate maintenance, become obsolete as a result of changing needs demands, standard of living or technology. It is obvious that a greater part of our building and other physical facility are in danger of deteriorating below the point of economic repairs as a result of lack of management. Proper management whether recreational or otherwise is center around some key objective. The proper management of these facilities will surely fulfill the purpose of these facilities. Facilities management (FM) is based on the premises that the efficiency of any organization is linked to the physical environment in which it operates and that the environment can be improved to increase efficiency (Grimshaw and Keeffe, 1993). Furthermore the lack of a clear maintenance policy as to what maintenance needs or priorities are and also lack of funds as the root cause of maintenance works; Nicky M Nzioki (2002). Difficulty of defining standard of maintenance to be reached in relation to dynamic changes in the society, difficulty in implementing maintenance due to lack of pressure and inadequate information for effective formal planning. Although they may have been properly designed and well-built originally, the recreational facilities worn out from use .in some cases, decay may have been hastened because of lack of maintenance or neglect as such the primary aim and objectives have not been achieved because of poor maintenance by the owner(s) right from the initial stage of these facilities and as a result of these, the impact of recreational activities on the people have been drastically low (Ihenacho, Ikpeme, & Saba, 2003). World literature emphasize that there were number of research done by scholars on this scenario in different point of views. But there is a huge research gap in research regarding the essence of facility management on property development, a research gaps worthy of research has emerged, providing some potentialstudyareas.

1.3 AIM AND OBJECTIVES

This project is aimed at examining the essence of facility management on property development in Ibadan Metropolis town. While the specific objectives are as follows:

To review the concept of facility management and maintenance service.
To examine the facility management approach in the study area.
To identify the problems associated with the management of property in Ibadan.
To suggest method of solving these identified problems towards achieving better management techniques.

1.4 RESEARCH QUESTION

What is the concept of facility management and maintenances service?
What is the facility management approach in the study area?
What are the problems associated with the management of property?
What are the ways of solving these identified problems towards achieving better management techniques?

1.5 SIGNIFICANCE OF THE STUDY

The finding of this study will be of benefit to the following:

Student in estate management and valuation, investors and researcher alike. It will also serve as a frame work for efficient property management, thus enhancing adequate return on the investment.

1.6 SCOPE OF THE STUDY

To make a meaningful approach and critical analysis of work of the nature, one has to put in to consideration, the area of coverage. Which the research would cover thereafter, this research is based on the problems and prospects of managing multi-tenanted commercial properties with particular reference to some shopping complex in Ibadan Metropolis.

1.7 LIMITATION OF THE STUDY

Expectedly, this work met some hindrance during the stage of visit. This may include:

Inadequate finance for gathering information from one place to another.
Inadequate information might be given which may not help to proceed on the research work.
Lack of corporation from the questionnaires respondents. Some may not collect questionnaires some may collect but made incomplete filling.

1.8 DEFINITION OF OPRETIONAL TERMS

Facilities management (FM) is a multidisciplinary or Trans disciplinary profession drawing on theories and principles of engineering, architecture, design, accounting, finance, management, and behavioral science. These disciplines each have a rich history of theory, research, and practice (Teichoz, 2004).
Management: is the system of directing, organizing and controlling of available human skills and financial resources to achieve a stated goal.
Property: in relation to real estate, property is legal entity denoting the character and quality of right that an individual has or possess in a property to claim ownership of it.

1.9 BACKGROUND OF THE STUDY AREA

Ibadan, (pronounced as E- baa- dawn) the present capital of Oyo State, is the third most populous state in Nigeria after Lagos and Kano with 3.5 million dwellers. In the 1960s, Ibadan was known to be the largest city in Africa after Cairo (Egypt) and Johannesburg in South Africa. The Yoruba people are the main inhabitant of this popular city, Ibadan, which was formally called Eba Odan (the city at the edge of a Savannah) at the point of its creation. Ibadan, located in the south-western part of Nigeria served as the home for trade, commerce and fashion in the 60s and 70s making Lagos a perfect rival. Ibadan was also the centre for administration of the Western region during the colonial era.

Prior to about 1550 A.D. the kingdoms were apparently inhabited by “homogeneous” ethic groups which had a paramount rulers Oba (king). The seat of the potentate was the capital city which was the religious, political, administrative an economic centre of the kingdom of the ethic group.

The ruling dynasty of most, if not all of these kingdoms traced their origin to Ile-Ife and their descent directly or indirectly to Oduduwa. The account of the foundation of these kingdoms revealed that their founders left Ile-Ife at different times and for slightly different reasons rather than by common decision taken in normal circumstances according to tradition.

Therefore, cities established in those days were crucial to the development of the ancient urban empires in Yorubaland as they were Mesopotamia, India, Egypt, China, Central Andes and Mesoamerica. The urban empires became knowledge based societies where information and the conscious regular and systematic collection of data became an integrated part of maintaining controls.

Yoruba city concept in the Golden Age which came to an end in 1793 after the death of Alaafin Aole, was the royal capital established by the kings. As there was only one Oba (king) in the kingdom, his seat was the only city in the kingdom. Only the seat of the king was designated city which is the largest. Other small settlement called.

In the 19th century, Yoruba land was characterized by insecurity. The intra-Yoruba war (1825-1893) and the military Jihad originating from Sokoto Sultanate, which spread from the north to the south of Nigeria, provoked huge movement of people from the north to the south of Yoruba land and from the countryside to the walled cities. Thus, many old cities disappeared (Old-Oyo, Owu) whereas a new generation of fortified towns came into being (New Oyo, Abeokuta, Ibadan).

Ibadan was created in 1829 as a war camp for warriors coming from Oyo, Ife and Ijebu. A forest site and several ranges of hills, varying in elevation from 160 to 275 metres offered strategic defense opportunities. Moreover, its location at the fringe of the forest promoted its emergence as a marketing centre for traders and goods from both the forest and grassland areas. Ibadan thus began as a military state and remained so until the last decade of the 19^th century. The city-state also succeeded in building a large empire from the 1860s to the 1890s and extended over much of northern and eastern Yoruba land. It was appropriately nicknamed idi Ibon, “but of a gun”, because of its unique military character. The economy of Ibadan primarily rested on agriculture (yam, maize, vegetables….), manufacture (mainly weapons, smithery, cloth and ceramics industry) and trade (slaves, palm oil, yam, kola for export, Shea- butter, salt, horses, and weapons from outside).

The colonial period reinforced the position of the city in the Yoruba urban network.

After a small boom in rubber business (1901-1913), cocoa became the main produce of the region and attracted European and Levantine firms, as well as southern and northern traders from Lagos, Ijebu-ode and Kano among other. Their activities covered both the import of manufactured articles and the export of local agriculture produce, notably cocoa, palm oil, palm kernels, rubber, hides, and skin (Mabogunje, 1968: 195). The railway to the North reached Ibadan in 1901 and all road traffic from Lagos to the North converge in Ibadan. The city became a major point of bulk trade. Its central location and accessibility from the capital city of Lagos were major considerations in the choice of Ibadan as the headquarters of the Western Provinces (1939), which became the Western Region of Nigeria in 1952.

Physical Characteristics

The major things considered under physical characteristics of Ibadan are, geographical

location, climatic condition, vegetation, land use and location of economic activities.

Geographical Location

Ibadan, one of the fastest growing cities in Nigeria (see plate 2.1 and 2.2) is located in Oyo State in the south-west geo-political zone of Nigeria. The State is bounded on the North by Kwara State, on the south by Ogun State, on the west by the sister state of Osun, and on the West by the neighboring Republic of Benin. (see figure 3.1).

The city of Ibadan is located approximately on longitude 3051 East of the Greenwich Meridian and latitude 70231 North of the Equator at a distance some 145kilometres worth east of Lagos. Ibadan is directly connected to many towns in Nigeria, as its rural hinterland by a system of roads, railways and air routes. The physical setting of the city consists of ridges of hills that run approximately in northwest – southeast direction. The largest of these ridges lies in the central part of the city and contains such peaks as Mapo, Mokola and Aremo. These hills range in elevation from 160 to 275 metres above sea level and thus afford the visitor a panoramic view of the city.

Climatic Condition

The average temperature of Ibadan is 27 C, with a range of 4 C; the mean annual rainfall is above 1,505mm while the relative humidity is between 60% and 80%. (Source; Oyo State Statistical Year Book).

Vegetation

According to O.A. Iwena (2000), the vegetation, of Ibadan is rainforest. It has tall trees exist in different heights; they form canopies i.e. lower, middle and upper layers; it has numerous heterogeneous species of trees like Iroko, Obeche and Mahogany.

Land use and Location of Economic Activities

The administrative and commercial importance of Ibadan has resulted in land being a key investment, an asset and a status symbol for the population. This has been evident in the frequency of and disputes in the city due to multiple ownerships. Although land ownership is theoretically vested in the government through a land use decree, land is still very much private owned by families and lineages. Beside, multiple ownerships, land disputes also arise from non-compliance by people building houses in contravention to building codes and regulation.

The total land area of the eleven Local Governments of the Ibadan metropolitan area is

3.123km² out of which about 15% falls in Urban Ibadan while the remaining 85% is in Rural Ibadan. Ibadan North Local Government has the largest land area among the urban Local Governments with 145.58km² while Ibadan North West is the smallest with 31.38km². The second largest local government in Urban Ibadan is Ibadan South West with 124,55km² this represents about 4% of the total land of the City and about one quarter of Urban Ibadan.

For the rural Local Governments, Ido has the largest land area with 865.49km² representing 27.71% of the total land of the City and 32.54% of the total rural land area. This is followed by Ona Ara Local Government with 277. 10km² while Egbeda Local Government has the least land area of 136.83km.

Scio-Economic Characteristics

Economic base and Occupation Structure

The economy of Ibadan primarily rested on agriculture (yam, maize, vegetables….), manufacture (mainly weapons, smithery, cloth and ceramics industry) and trade (slaves, palm oil, yam, kola for export, shea butter, salt, horses, weapons from outside).After the rubber boom their activities covered both the import of manufactured articles and the export of local agriculture produce, notably cocoa, palm oil, palm kernels, rubber, hides, and skin (Mabogunje, 1968: 195).

Population Growth

The growth of the population of Ibadan has also been equally remarkable. From a war camp consisting in 1829 of a motley collection of soldiers, the population rose from the estimated 100,000 in 1851 to 175,000 in 1911. Between 1911 and 1921 it increased at about 3.1percent per annum to 238,075. The rate of increase between 1921 and 1931 was

0.5percent per annum while it was only 0.8percent per annum for the period between 931 and 1952 when the population rose from 387,133 to 459,196. In 1952, the less city was counted and it was 286,252. From then on, the population of Ibadan metropolitan area increased at a growth rate of 3.95percent per annum from 1952 and 1963 when the population rose to 1,258,625. The population rose to 1,829.300 in 1999 at a growth rate of 1.65% from 1963 and increased to 1,338,659 in 2006 at a growth rate of 2.35%. However, the population growth is gradually shifting to the less city with a growth rate of 4.7% per annum between 1991 and 2006 according to the provisional census figure released by the National Population Commission (2006).

Friday, 7 January 2022

ANALYSIS OF FACTORS AFFECTING RESIDENTIAL PROPERTY DEVELOPMENT PATTERNS IN OSOGBO, OSUN STATE NIGERIA

ABSTRACT

This study set to analyze the factors affecting residential property development pattern and in Osogbo, Osun State – Nigeria, to achieve this aim the researcher evaluate the patterns of property development, identify the various factors affecting property development pattern and rental value of properties and evaluate the effects of such factors on property investment in Osogbo metropolis. The research adopted survey designs which allow the gathering of relevant information using questionnaire, observations, and oral interviews of stakeholders. The data gathered were presented and analyzed using the descriptive statistics. The research reveals that property location, and infrastructural facilities have a very significant impact on residential property development patterns and rental value in the study area. Finally, it is recommended that the government harness development potential within the study area to create enabling environment for property development and urban infrastructures that will enhance property value in Osogbo, Osun State – Nigeria.

CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND OF THE STUDY

Property, in the abstract, is what belongs to or with something, whether as an attribute or as a component of said thing. In the context of this article, it is one or more components (rather than attributes), whether physical or incorporeal, of a person’s estate; or so belonging to, as in being owned by; a person or jointly by group of people or a legal entity like a corporation or even a society. Depending on the nature of the property, an owner of property has the right to consume, alter, share, redefine, rent, mortgage, pawn, sell, exchange, transfer, give away or destroy it, or to exclude others from doing these things, as well as to perhaps abandon it; whereas regardless of the nature of the property, the owner thereof has the right to properly use it (as a durable, mean or factor, or whatever), or at the very least exclusively keep it (Wikipedia, 2018).

Residential property refers to building that is developed for people to live or undeveloped land that is designated for residential use. Residential properties could be a consumption goods, or investment goods (Sratton,2008).As a consumption goods, it is acquired for owners occupation while as investment goods it is acquired for the purpose of deriving optimum return from outright sale or letting of the property. If this is the case, the price or rent of the residential property becomes very important to the seller and buyer or landlord and the tenant. Hence investment in this type of property is regarded as a considerable source of wealth for many investors.

Property development comprises a significant component of total Australian economic output. The property development process involves the continual combination of significant factors of production (land, labour, capital and enterprise). In addition, property development in Australia has been characterized by some significant cyclical influences as the process involves significant risk. It is in the interests of capital markets, market participants and the public sector that property development processes are better understood so as to ensure efficient allocation of physical resources, human resources and capital(Cadman, 1995).

The pattern of property development within the context of metropolitan growth and development has been the subject of an extensive literature. Among the streams of literature have been monocentric and polycentric models, rent gradients and population density, and spatial mismatch and jobs/housing balance. Less examined have been the factors that determine the specific location of residential development from among the number of potentially suitable sites available. Miles (2002) of opined that site selection suggest that factors that are important in locating a residential development include: physical suitability for development, slopes, soils, hydrology, land availability, legal restrictions, government regulations (zoning and other land use controls), existing land use patterns and location of other property development, access, including proximity to interstate highways, distance to employment sources, distance to shopping, availability of amenities (water, restaurants and shopping, golf, parks), neighborhood factors such as age of surrounding housing stock, schools, crime etc (McMillan, 2000).

The price or rent derivable from properties varies as different property command different rent and price (Oni, 2007). Rent and price are yardsticks for determining the value of a property. Since property with high value command high rent or price and properties with low value command lowrent or price vice versa. The value of residential properties are influenced by several factors among which are physical features of a building such as numbers of room, facilities available, size, age, location factors for instance; proximity to work place, market, school, hospital etc, accessibility to various amenities and services, population density of the location of the property and availability of property title (Oni, 2007).Therefore, any investigation in to the nature and behavior of property price must recognize that property as a commodity is not a single goods but a complex bundle of services or potential services which operate in many dimension. (Oyebanji,2003). Nigeria has a large real estate market that has not attain its climax due to limited circulation of information on properties transaction as it relates to properties feature, their actual value and impact on market value, organizations available properties and professional services available in various locations nationwide. These has made it necessary that as real estate developers market their properties they must recognize that in order to achieve success, reliable information of properties market must be documented and made available to property merchant.

The value of access is capitalized into the land value and access is measured through market participants’ willingness to pay. Essentially, this view suggests that accessibility measures may be inferred from land prices. The relationship among accessibility, property values and land use patterns has been the pre-occupation of earliest theorists with indication that travel costs were traded off against property rents and population densities from Central Business District (CBD) to suburbs of a mono-centric city (Oni, 2009).

Quality of the environment is also another factor that affects the rental values of property. Property value does not only depend on the physical characteristics of a building but also the environment that surrounds the building. Developments of various transportation modes have become pivotal to physical and economic developments. Access to major roads provides relative advantages to residential users (Rosen, 2014).

The capital intensive nature of property development has resulted huge gap between demand and supply for properties especially residential properties due to the ever increasing population in many major cities in Nigeria of which Abuja is not an exception in view of this development. This study is carried out to analysis of the factors affecting residential property development pattern in Osogbo in order to provide guide to prospective real estate developers and tenants on residential property transaction.

1.1 STATEMENT OF PROBLEM

The capital expenditure in housing project, high property demand due to ever increasing population and limited supply of properties has made properties developers to source for funds from different financial institutions to engage in the provision of residential houses to meet the high demand. Due to the high demand and good returns on property investment, more investors are showing interest in properties but with little or no knowledge of the factors that determine the property development pattern and rental value and due to this, they have encountered problem in maximizing their returns. This has made it necessary to assist the property developers and landlords with information on factors that affect property development pattern and rental value to enable them make informed decision on property development project

1.3 AIM AND OBJECTIVES

The aim of the research work is analyse the factors affecting residential property development pattern in Osogbo, Osun State – Nigeria.

To achieve this aim, the listed objectives shall be pursued:

To evaluate the patterns of property development in the study area
To identify the various factors affectingproperty development pattern and rental value of properties in the study area
To evaluate the effects of such factors on property investment in the study area.

1.4 RESEARCH QUESTIONS

What are the patterns of property development in Osogbo?
What are the various factors affecting property development pattern andrental value of properties in the study area?
What are the effects of such factors on rental value of real estateinvestment in the study area?

1.5 SIGNIFICANCE OF THE STUDY

This study will contribute to the body of knowledge that is available in public document, literatures, book, magazines and journals. Also it will serve as a reference material for students, scholars and other researchers. In addition, it will help individuals, professionals, investors, communities, change agents, and the society at large on what to look out for when venturing in to property market. Also, this study will help researchers, scholars, and investors to identify various property development pattern and residential properties characteristic that have relatively strong impact on their rental values and to an extent influence the sales or purchase decisions of sellers and buyers in Nigeria.

1.6 SCOPE AND LIMITATION OF THE STUDY

The scope of the study is limited to the analysis of the factors affecting residential property development pattern in Osogbo. The research is also limited toboth commercial and residential properties within the town.

Limitations

The researcher faced various problems when carrying out this field study. Some of these challenges included:

Some respondents were unwilling to fill the questionnaires since they were suspicious about the study. Many perceived it as sharing very vital information which they were not ready to furnish the researcher with.
Delays were experienced from the respondents who took very long to complete the questionnaires and constant postponement of the picking date proved to be very frustrating to the researcher.
At times some of the respondents did not fill in the questionnaires adequately and ignored certain sections that required the giving of opinions which made it difficult for the researcher to make adequate conclusions.

1.7 DEFINITION OF TERM

Property development: Property development, is a business process, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of developed land or parcels to others (Wikipedia, 2017).

Property: This is the embodiment of tangible ownership right or bundles of right in real estate. It could also be described as a concept of right which can be held separately (Babatunde, 2003).

Rental Value: This is the worth or value of property in an open market. It is also the value arising out of the lease or renting out of a property on a periodic basis usually yearly.

Residential Property: it is a building that is used or suitable for dwelling purpose. They are dwelling house such as bungalows, duplex, detached houses, semi-detached houses, etc. (LBTT 4010)

Value: This is the monetary worth of a thing. It is expressed as the value of a goods or services measured by the amount of other goods and services for which it will exchange. It is a determination or quality of an object, which involves any sort of appreciation or interests. Such appreciation involves feeling and ultimate desire or tendencies. Value is basically the worth of a thing (Olayonwa 2006).

Pattern:according to Collins English Dictionary defined pattern as the repeated or regular way in which something happens or is done or an arrangement of lines or shapes, especially a design in which the same shape is repeated at regular intervals over a surface.

1.8 THE HISTORICAL BACKGROUND OF THE STUDY AREA

The early history of Osogbo is essentially the legendary account of the spirit-world; it is the history of the early people whom we call the spirits and fairies. This is in line with Yoruba traditions, which use mythical stories to explain the origins of the ruling families of an early Yoruba state.

Osogbo according to Yoruba oral history had been founded as early as Oduduwa period. Oso-igbo, the goddess of Osun River, was the Queen and original founder of Osogbo. She was credited with many important achievements, which helped to establish the settlement.

Osogbo the capital of Osun lies on coordinates 7°46′ North 4°34′East with an area of 47kmsq. According to the 2006 Population and Housing Commission Census, the city has a population of 156,694 people. Osogbo shares boundary with Ikirun, Ilesa, Ede, Egbedore and Iragbiji and is easily accessible from any part of the state because of it’s central nature. It is about 48km from Ife, 32km from Ilesa, 46km from Iwo, 48km from Ikire and 46km from Ila-Orangun.

Osogbo is a commercial and industrial centre. This started in 1907, when the British Cotton Growing Association sited an industry for growing and ginning of cotton. The Nigerian Tobacco Company (NTC) built its first factory in Osogbo. In this same year, a major turning point for the city which helped in its industrial and commercial development occurred. The railway tracks were constructed linking it to other parts of Northern Nigeria. This attracted people from far and near.

The Ataoja of Osogbo is the traditional title of the King and he is the political and spiritual heads of Obas and Chiefs in Osogbo and Olorunda Local Government Areas.

Osogbo is famous for the annual Osun Osogbo Festival which attracts tourists from different part of the world.

Sunday, 2 January 2022

IMPACT OF COMMUNITY DEVELOPMENT ON COMMERCIAL PROPERTY

Abstract

Road construction is a socioeconomic activity in most urban centers, it is long piece of ground specially prepared with a hard level surface for people, vehicles to travel upon, a greater part of the nations resources. Since 1941, a lot have been spent in road construction, maintenance, expansion and rehabilitation spread through the nations which is one of the factors affecting property value, for this reason the research is aimed at examining the impact of road construction, expansion and rehabilitation on property value with a particular interested in Osogbo town, in Osun state. Literatures on the topic were reviewed with proper citation. 100 questionnaires were administered. The data obtained were analyzed using tables and description. It was found that there was notable increase in property value after road construction and it has impacted the community positively, government have been encouraged to levy betterment tax on occupiers / owners of the commercial properties. It was recommended that road should be constructed to other nearby town so as to improve property value and foster business relationship in the area.

CHAPTER ONE

1.0 INTRODUCTION

Community development has been one of the most significant social forces in the process of planned change during the last three decades. In the past change has occurred without plans or guidance, but today the increasing trend towards planned change enabled large segments of people to participate in the planning and change creating programs which affect their lives. Community development as an instrument of change has become a controversial topic and one hopes this will change the attitudes of policy makers.

The United Nations defines community development as “a process where community members come together to take collective action and generate solutions to common problems.” (UN, 2014). It is a broad concept, applied to the practices of civic leaders, activists, involved citizens, and professionals to improve various aspects of communities, typically aiming to build stronger and more resilient local communities.

Community development is also understood as a professional discipline, and is defined by the International Association for Community Development as “a practice-based profession and an academic discipline that promotes participative democracy, sustainable development, rights, economic opportunity, equality and social justice, through the organisation, education and empowerment of people within their communities, whether these be of locality, identity or interest, in urban and rural settings (Alison and Marilyn, 2011).

Community development seeks to empower individuals and groups of people with the skills they need to effect change within their communities. These skills are often created through the formation of social groups working for a common agenda. Community developers must understand both how to work with individuals and how to affect communities’ positions within the context of larger social institutions.

Community development has gained universal recognition in the last three decades as a substantial force for inducing planned change. Rapid technological advances have resulted in a series of inescapable social realities, and community development can help adapt to these new realities. Community development provides the possibility of altering by democratic means at times antihuman directions of technology, urbanization towards more human ends and property development.

Community development in forms of road construction, electricity, pipe born water, urban housing is socio–economic activity which brings opportunities as a result of improvement in the general activities of people which facilitate business activities and enhances the value of commercial properties.

Commercial properties are important in physical and economic development of towns and cities all over the world. Commercial property and land values tend to increase in areas with expanding community developments / infrastructure, and increase less rapidly in areas without such improvements, rapid and continued rise in housing and prices are expected in cities with community development, rapid economic and population growth (Gold Berg, 2017) man, nations, town regions and the world itself would be severely limited in development without community development, which is a key factor for physical and economic growth (Oyesiku, 2012).

Community development usually has three major elements: (a) community members’ well-being or welfare involving both material sufficiency and non-economic aspects of living such as health and education; (b) resource development, involving increased production and efficiency; and (c) organizational development, involving the maintenance and creation of social and economic structures through which members of the community may channel their energies for the betterment of community living (Baker, 1989:48). The ultimate goal of community development is therefore, to develop members’ capabilities and potentials to affect their well-being and quality of life through maximizing resources utilization to benefit them socially and economically. This could only be achieved through effective management of community development programmes as well as having highly committed and well-trained professionals not only in the technical disciplines but also in the community capacity building. The paper focuses on community capacity building as a community development process.

Similarly, commercial activities like retail, wholesale business, has attracted consumers and ancillary service providers. This partly caused increase in demand for commercial space and its effects on commercial property values within a community. There have been increase in rental values of commercial properties within a developed community., therefore this study seeks to examine the impact of community development on commercial property.

Statement of Problem

Poor road network is one of the factors affecting property values. It makes a village town or state to be backward in economic growth and development. It is the socioeconomic impact of the road construction on property values that necessitate this study. What are the impact of road construction, expantsion and rehabilitation on property value?

Aim and Objectives

The aim of this study is to examine the impact of road construction, expansion and rehabilitation on property rental values in Osogbo. In other to achieve the above aim, the following objective shall be pursued.

To examine the state of the available road network in the study area.
To asses the supply of commercial property in the study area.
To examine the rental value of commercial property in the study area before and after road construction.
To determine the extent to which road construction has affected property values.
To recommend the way forward.

Research Question
What is the nature of available road network in the study area?
What is the growth rate of supply of commercial property in the study area?
What are the values of property from 2010 – 2015?
To what extent has road construction has affected property values?
What way can road network be increase?
1. Significance of the Study

This study focus on the impact of road construction on commercial property rental value. Accessibility is the most important element that enhance property values. This research will encourage government to provide good road network as it has positive impact on commercial property rental values.

The greater the accessibility of a location the comparative advantage to commercial property users, and the greater the comparative advantages to the demand for more property in the study area and finally this research will also serve as a requirement for the award of degree in course of study.

Scope and Limitations of the Study

This research is confined to the study of impact of road construction, expansion and rehabilitation on property value in Osogbo, the research covers property value found within Osogbo metropolis.

1.6 Historical Background of the Study Area

The Ataoja of Osogbo is the traditional title of the King and he is the political and spiritual heads of Obas and Chiefs in Osogbo and Olorunda Local Government Areas.

Osogbo is famous for the annual Osun Osogbo Festival which attracts tourists from different part of the world.

1.7 Definition of Key Terms

Road: The Concise Oxford Dictionary defined road as specially prepared truck between places for the use of pedestrian, rivers and vehicles. It could also be a long narrow piece of ground especially prepared with a hard level surface for people, vehicles etc.
Property: Is a legal concept encompassing all the interests, right and benefit related to ownership. Properties consist of the right of ownership which entitle the owner to a specific interest or interest in what is a physical entity and its ownership Olusegun (2003).
Value: As the worth of something in terms of money or other goods for which it can be exchanged or quality of being useful or important. The word value does not have a specific and restricted meaning as it may mean different things to different people Olusegun (2003).
Commercial Properties: Immovable properties, land together with all the properties on it that cannot be moved with any attached rights paten business operation (Microsoft Encarta 2009 Microsoft Corporation).
Rental Value: As the rent which is an annual or periodic payment of money for the use of land or of land and building, rental value is the highest rent obtainable for a property in an open market at any given time Olusegun (2003).
Road Network: Road construction is defined by Lord Hale to be open passage of bring, which from the situation of the adjacent land, and its own depth and wideness with nodal link and connectivity, afford a secure place for the common ridding and anchoring of vehicles for human and goods. Zangand lund University (2004), sees road network to consists of large number of interwoven roads exhibiting many patterns ranging from star like to grid – like with irregular patterns becoming recognized.

Friday, 31 December 2021

ASSESSMENT OF THE IMPACT OF VACANCY AND OCCUPANCY RATE ON RESIDENTIAL PROPERTY INVESTMENT MARKET

CHAPTER ONE

Introduction

1.1 Background of the Study

A vacancy rate serves as an important indicator of the health of a real estate market. But we cannot draw sound inferences about a market just by observing the rate alone because many factors contribute to a vacancy rate. The same rate may tell different stories, and different rates may tell the same story. The vacancy rate is the percentage of all available units in a rental property, such as a hotel or apartment complex, that are vacant or unoccupied at a particular time. It is the opposite of the occupancy rate, which is the percentage of units in a rental property that are occupied. High vacancy rates indicate that a property is not renting well while low vacancy rates can point to strong rental sales.

The vacancy rate is calculated by taking the number of vacant units, multiplying that number by 100, and dividing that result by the total number of units. The vacancy rate and occupancy rate should add up to 100%.In real estate, the vacancy rate most often represents units that are vacant and ready to be rented, units that have been turned off upon the exit of a tenant, and units that are not currently rentable because they are in need of repairs or renovations. A property owner can use vacancy rates as a metric for analysis. Changes in the percentage of vacant units versus occupied units, the length of time occupied units are remaining active, or other rental conditions can provide guidance regarding how competitive a property owner has made the property. If a property owner is charging significantly more or less than the rest of the rental market, this may be reflected in the overall vacancy rates. It can also provide information regarding the effects of price changes or advertising on unit occupancy.

While vacancy rates are commonly used to assess an individual property’s performance, such as a hotel monitoring its nightly vacancy rate, aggregate vacancy rates are also used as economic indicators of a real estate market’s overall health. Many firms servicing the residential and commercial real estate space gauge the strength of the overall industry using metrics such as vacancy rates, rental rates and construction activity. According to the natural rate hypothesis, fluctuations in apartment rents are driven by deviations in the vacancy rate from equilibrium or “natural” levels. One reason to estimate natural vacancy rates is to confirm this hypothesis. Beyond that, however, estimates of the natural vacancy rate for a rental housing market provide information that is potentially useful for investors, lenders and other real estate professionals. Comparing the natural rate at a point in time to the actual vacancy rate provides some indication of future rent movements in that market. In addition to its effect on the movement of rents, the level of the vacancy rate has direct implications for the return on property investment. In long-run equilibrium, the lower the natural vacancy rate, the greater the amount of rent generated by a given rental property, everything else held constant. If the natural vacancy rate declines over time, the return on rental property investment will rise, ceterisparibus.

Housing markets are often modeled as a series of separate but related submarkets, with differing supply and demand conditions in each. In the case of a rental market, there may be separate submarkets for different apartment types (one-bedroom, two-bedroom, etc.), and for different geographic locations. If submarkets exist, it is possible that natural vacancy rates will vary by submarket. In that case, information on natural vacancy rates is made more useful if available at the submarket level.

Empirical support for the existence of a natural vacancy rate in rental housing dates back to Smith (1974). Since then, a number of studies have focused on variations in the natural rate across both space and time. For example, Gabriel and Nothaft (1988) provide evidence of substantial variation across major U.S. metropolitan areas. In a more recent paper, Gabriel and Nothaft (2001) find the duration and incidence of vacancies, and the natural vacancy rate, to vary across metropolitan areas with a number of factors including housing costs, heterogeneity of the housing stock, tenant mobility, and population growth. In an effort to decongest the population of Gwagwalada mini campus of the University of Abuja to enhance a conducive learning environment for its students, the university had relocated to its permanent site located at Ido Sariki, along airport road this have adversely affected the vacancy and occupancy rate in Gwagwalada while house rent in settlements around the permanent site of the university of Abuja has skyrocketed following the relocation of some departments of the university to that site. This has necessitated the need to carry out an assessment of the impact of vacancy and occupancy rate on residential property investment in the area.

1.2 Statement of the Problem

The rental vacancy rate is the fraction of rental properties not rented at a point in time. This captures pressures in the residential property investment market. It matters for understanding the balance between supply and demand, future pressures on rental prices and the typical duration of vacancy for a landlord’s budgeting purposes. The relationship between the vacancy rate and the housing production rate is expected to be negative as well. If the vacancy rate is high, the supply of residential property will be higher than the demand for residential property, which means that the property prices are stable or decreasing. Consequently, developers won’t have much stimulus to engage in residential property development and the housing production rate will be relatively low. This study seeks to assess the impact of vacancies and occupancy rate on residential property investment market in Gwagwalada, FCT Abuja.

1.3 Aim and Objectives of the Study

The aim of this project is assess the impact of vacancies and occupancy rates on residential property investment market in Gwagwalada FCT Abuja.

The specific objectives of this are as follows:

To ascertain the extent of vacancies rate of residential property in Gwagwalada
To evaluate the causes of vacancies of residential properties in the study area
To assess the impact of vacancies and occupancy rates on residential property investment market in the study area.

1.4 Research Questions

The following research questions will serve as a guide to the researcher:

To what extent are vacancies rates of residential properties in Gwagwalada?
What are the causes of vacancy of properties in the study area
What are the impact of vacancies and occupancy rates to residential property investment market in the study area?

1.5 Significance of the Study

The findings of this research “Assessment of the impact of vacancy and occupancy rate on residential property investment market” will serve as a guide for investors to be able to make reliable investment decision that will ensure high return on investment.

The result of this study will serve as a guide to other researchers who are interested in further research into the impact of vacancy and occupancy rate on residential property investment market in Gwagwalada and Nigeria at large.

1.6 Scope and Limitation of the Study

The scope of this study covers only the assessment of the impact of vacancy and occupancy rate on residential property investment market in Gwagwalada, FCT Abuja. This further limited to old Kutunkun, Compensation layout.

Limitations

Some factors militated against the success of this work, though the researcher endeavoured to accommodate them. Thus, some of the constraints inherent in the course of carrying out the research include, among others, the peculiar nature of real property market. It is not like commercial markets where one can easily come face to face with both the buyers and sellers to get information he wants. In real property market, information is not easily circulated among Estate Surveyors. Vital information required by the researcher from some respondent Estate Surveyors were not collected due to pressure of work and other commitments facing them during the time the researcher required those information. The researcher also faces other challenges such as finance, time and the un-corporative nature of some respondents.

1.7 Operational Definition of Terms

Vacancy: Dictionary.com define vacancy as the state or condition of being vacant or unoccupied; emptiness.

Occupancy Rate: A measurement expressed as a percentage of the total amount of occupied space divided by the total amount of existing inventory. Occupied space is defined as space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant.

Vacant Space: Vacant space is defined as space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available.

Percent Leased Rate: A measurement expressed as a percentage of the total amount of leased space divided by the total amount of existing inventory. Leased space is defined as space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease.

Investment: An investment is an asset or item that is purchased with the hope that it will generate income or will appreciate in the future.

Real Estate: Real estate is the property, land, buildings, air rights above the land and underground rights below the land. The term real estate means real, or physical, property.

Property: In common law, real property (immovable property) is the combination of interests in land and improvements thereto, and personal property is interest in movable property. Real property rights are rights relating to the land.

Investor: An investor is a person that allocates capital with the expectation of a future financial return. Types of investments include: equity, debt securities, real estate, currency, commodity, token, derivatives such as put and call options, futures, forwards, etc.

Availability Rate: A measurement expressed as a percentage of the total amount of available space divided by the total amount of existing inventory. Available space is defined as the total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date, although it excludes space available in proposed buildings.

1.8 The Study Area

Before the creation of Federal Capital Territory, Gwagwalada was under the Kwali District of the former Abuja emirate now Suleja emirate. Gwagwalada Area Council was created on 15 October 1984. Its official population figure of 158,618 people at the 2006 census. The relocation of the seat of government from Lagos to Abuja in 1992 and the recent demolition of illegal structures within the Federal City Center brought a massive influx of people into the Area Council being one of the fastest growing urban centers in the FCT. The population of the Area Council has grown to over 1,000,000 people. Gwagwalada Area council is one of the five Local Government Area Councils of the Federal Capital Territory of Nigeria, together with Abaji, Kuje ,Bwari , and Kwali ; the FCT also includes the City of Abuja .Gwagwalada has an area of 1069.589 km 2.

THE EFFECT OF RURAL URBAN MIGRATION ON PROPERTY VALUES IN OSOGBO OSUN STATE

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Property is a multi-dimensional product and the number and nature of factors that influence its value are equally of different kinds. Property values tend to increase in areas with expanding transportation networks and population growth (Goldberg, 2017). The movement of people from rural to urban areas is a common occurrence in Nigeria which have greatly impacted on property value in urban centres or cities in Nigeria. Rural urban migration involves the movement of people from their respective rural households to urban centers in search of better living conditions. The movement poses some problems in the rural as well as in the urban centre even though there are benefits derivable from it (Mini, 2000).

Properties have continued to attract the investment interest of real estate developers as a result of population growth mostly due to rural – urban migration. This is because of the increasing demand for properties such as residential and commercial properties in the urban centres (Olujimi and Bello, 2009); and because of the increase in rent (value), which is usually attached to the property (Oduwaye, 2017). Several factors exist that determine value of real properties. According to Britton (2019), determinants of individual property value include location, time, property interest, state of repair, accommodation details, services/facilities and rural urban migration.

Rural-urban migration can be seen as the physical transnational of individuals or group of people from rural areas to urban centers. Rural-urban migration is the most important aspect of labour migration because it affects the structures and composition of the population. The effect of rural urban migration on property value is far more than merely a demographic or quantitative one. Whereas the rural urban migration has result in population growth and urbanization in developed countries was the result of rapid industrialization, the growth in Nigeria like most other developing nations is a consequence of the “push” of the rural areas and the “pull” of the town (Kehinde, 2010). The majority of African urban centres developed and continues to develop as commercial-administrative and servicing entities. In Nigeria like in most other developing countries, the growth of the tertiary sector is often a symptom of poverty and stagnation rather than economic development. Consequently, population growth in most of the African countries is characterized by a growing gap between employment opportunities and demand, and an ever increasing shortage of urban services and facilities which are accessible to a diminishing share of urban population.

Gross migration refers to the total number of migrants moving into and moving out of a place, region or country, while net migration is the balance between the number of migrants coming into and moving out of a place, region or country. Migration can be considered as a significant feature of livelihoods in developing countries to pursuit better living standards. Central to the understanding of rural urban migration flow is the traditional push-pull factors. “Push factor” refers to circumstances at home that repel; examples include famine, drought, low agricultural productivity, unemployment etc. while “pull factor refers to those conditions found elsewhere (abroad) that attract migrants. There are many factors that cause voluntary rural-urban migration, such as urban job opportunities, housing conditions, better income opportunities etc. There is no doubt that, apart from these factors, urban areas also offer a chance to enjoy a better lifestyle. Pull factors have predominated- urban environment provides better employment and income opportunities. It is on bases that this study seek to examine the effect of rural urban migration on property values in Osogbo Osun State.

1.2 Statement of Problem

World population has risen to over 6.3 billion people and by 2030 over 60 percent of the world’s population is expected to be living in cities mostly as a result of rural urban migration. There are now over 400 cities with a population of over a million people (UN-Habitat, 2015). Rural urban migration has resulted in population growth which is an underlying factor for the demand of property, without new supply of dwellings, it pushes up the prices for both renting and purchasing dwellings. The problem is further compounded in many of the large cities with a change in living preferences that has resulted in a fall in household rates, particularly in the western world. Hence, population movement to the city that is rural urban migration and fewer people per household means the supply of more housing is needed. The rural urban in Osogbo Osun State has assumed a geometrical proportion, the provision of urban infrastructure and housing to meet this demand is, not at commensurate level. This has resulted in acute shortage of housing / residential properties to the teeming population. The inadequacies are far-reaching and the deficit is both quantitative and qualitative; even those households with shelter are often subjected to inhabiting woefully deficient structures as demonstrated in the existence of slums and shanties in and around the city of Osogbo. They reside in the slums and squatter settlements scattered around the city and are predominantly engaged in informal economic activities which encompass a wide range of small-scale, largely self-employment activities. This problem can only be brought under control through urban consolidation and/ or development of properties in the urban center. It is on this note that this study seek to examine the effect of rural urban migration on property value in Osogbo Osun State.

1.3 Aim and objectives of the study

Aim:

The aim of this project is to examine the effect of rural urban migration on property value in Osogbo – Osun State.

Objectives:

The specific objectives of this study include:

To determine the cause of rural urban migration in the study area
To evaluate the state of properties in Osogbo – Osun state
To determine the effect of rural urban migration on the property value in the study area
To identify other factors affecting property value in the study area.
Assess the impact of population growth on the demand for residential properties in the study area

1.4 Research Questions

What are the causes of rural urban migration in the study area?
What is the state of properties in Osogbo – Osun State?
What are the effects of rural urban migration on property value in the study area?
What are the other factors affecting property value in the study area?
What is the impact of population growth on the demand for residential properties in the study area?

1.5 Significance of the study

The importance of the research is to be appreciated by all since concepts of rural urban migration and its effect on properties value affects everybody irrespective of class, status or occupation.

However, the study will be importance to the following categories of persons.

Government (policy makers): The government will benefit from the study since it will provide the basics for making policy changes and formulating future policies. It helps the economy in planning for development especially in real estate development.
Students: The study is important to students since it will reveal more details and provide more information for those who are interested in finding out rural urban migration trends in Nigeria and its consequences on properties value in Nigeria and also for further studies.
Research: This study will provide more information for further research about the rural urban migration and its effect on property value in Osogbo – Osun state.
Investors in Real Estate: Real estate investors will benefit from the findings of this study as it enlighten on the effects of rural urban migration on property values in Osogbo, it will put them in better position to make inform decision on how to invest their money.

1.6 Scope and limitations of the study

The scope of this study covers only the effect of rural urban migration on residential property value in Osogbo Osun State. Other properties such as commercial properties, industrial or educational properties will not be included in this research. Geographically, the study is limited to Osogbo the Osun state capital.

Limitations

The researcher faced various problems when carrying out this field study. Some of these challenges included:

Some respondents were unwilling to fill the questionnaires since they were suspicious about the study. Many perceived it as sharing very vital information which they were not ready to furnish the researcher with.
Delays were experienced from the respondents who took very long to complete the questionnaires and constant postponement of the picking date proved to be very frustrating to the researcher.
At times some of the respondents did not fill in the questionnaires adequately and ignored certain sections that required the giving of opinions which made it difficult for the researcher to make adequate conclusions.

Operational definition of terms

Migration: Migration refers to permanent or semi-permanent change in the place of residence of an individual or a group of individuals from one location to another.

Property: This is the embodiment of tangible ownership right or bundles of right in real estate. It could also be described as a concept of right which can be held separately (Babatunde, 2013)

Population Growth: Population growth is the increase in the number of people that reside within a state or country.

Rental Value: This is the worth or value of property in an open market. It is also the value arising out of the lease or renting out of a property on a periodic basis usually yearly.

Residential Property: it is a building that is used or suitable for dwelling purpose. They are dwelling house such as bungalows, duplex, detached houses, semi-detached houses, etc. (LBTT 4010)

1.8 The study area

The Ataoja of Osogbo is the traditional title of the King and he is the political and spiritual heads of Obas and Chiefs in Osogbo and Olorunda Local Government Areas.

Osogbo is famous for the annual Osun Osogbo Festival which attracts tourists from different part of the world.

Wednesday, 29 December 2021

AN ASSESSMENT OF THE IMPACT OF PROPERTY MAINTENANCE ON RESIDENTIAL PROPERTY IN NASARAWA

ABSTRACT

A building fabric is referred to as an “environmental envelope” because it is the means by which the natural or external environment may be modified, to produce a satisfactory internal environment for man to live in. The deterioration of residential buildings hampers its ability to perform adequately, thus is important to ensure proper maintenance to prevent deterioration. This project therefore attempts to assess the impact of property maintenance on residential property in Nasarawa. Due to the neglect of the maintenance component of the housing process in the country, a lot of public and private residential buildings are in a state of disrepair. In view of the above, this study was designed to assess the current condition of residential buildings, identify the underlying principal causes of poor maintenance of residential properties, analyses the maintenance policy and p ractice and capacity of the maintenance and make suggestions and recommendations towards the adoption of effective maintenance policy and innovations that would address the property maintenance problem in residential property. The field investigations focused on residential buildings. The study also established the following factors as being responsible for the poor maintenance of residential buildings: The age of the buildings, Lack of maintenance culture, Inadequate funds and high maintenance cost, pressure on building facilities by number of users and poor construction work and maintenance work done by maintenance personnel of the institution. The study concludes by enumerating a number of recommendations aimed at providing the necessary framework for proper and effective maintenance of buildings. These among others are: the need for public institutions to embrace preventive maintenance practice as a high priority rather than adhoc maintenance.

CHAPTER ONE

1.0 INTRODUCTION

1.0 BACKGROUND TO THE STUDY

Provision of adequate, affordable and high standard and quality housing that meets the social, economic and political aspirations of the citizenry remains the primary and major focus of all governments the world over. This is because the fulfillment of this desirable social objective is a key component of sustainable development (Ibem and Amole, 2010) and a measure of the well being of the people. According to Leong (2009), housing is a major factor impacting on the health, safety, socio-economic and political life of the occupants. In fact it impacts all aspect of human endeavour. Thus, the state of housing and its environment is an indicator of the level of development and condition and state of the citizenry.

Physical infrastructure constitutes a high proportion of the country’s investment. It is therefore of primary importance that these facilities which include residential buildings are maintained in order that they can serve both the architectural and aesthetical functions for which they are built. The physical appearance of residential buildings in part constitutes the basis upon which the society makes their initial judgment of the quality of services to be offered.

One of the critical problems confronting the housing industry in Nigeria is the poor maintenance practice (Afranie and Osei Tutu, 1999). The role of residential buildings in national development cannot be over-emphasized. However, in spite of the heavy investment in residential buildings, residential building owners and occupants allow their structures to care for themselves without any sustainable maintenance plan to preserve the quality of the buildings. The continued efficient and effective performance of such property depends on the nature of their buildings in addition to other factors such as enhanced conditions of service, provision of the requisite tools etc.

Maintenance primarily, is to preserve buildings in their initial functional, structural and aesthetic states so that they continue to remain as such and retain their investment value over a long period of existence. It is therefore necessitated by deterioration of the materials and components of building(s) and its environment. It is the works undertaken in order to keep or restore every part of the building(s), its contents and its environment in an acceptable standard or condition. This includes but not limited to the carrying out regular repairs of works and the replacement of items in buildings and its environment that are in deplorable conditions.

According to Seeley 1987, neglect of maintenance has accumulative results with rapidly increasing deterioration of the fabric and finishes of a building accompanied by harmful effects on the contents and occupants. Therefore, buildings are too valuable assets to be neglected in this way. In his hierarchy of needs theory Maslow (1954) identifies five basic needs which are organized into successive level of importance in an ascending order. He identified physiological needs as the most basic needs of human beings which include air, food, water, shelter (housing), sex and sleep.

BS 3811(1984), define ‘maintenance’ as “The combination of all technical and associated administrative actions intended to retain an item in, or restore it to, a state in which it can perform its required function.”

Maintenance brings about improved utilization of buildings ensuring the highest safety standards. It must be emphasized that more rather than less maintenance work is necessary if the value and amenity of the nation’s building stock was to be maintained. A good maintenance system is also a good disaster mitigation system. Moreover, a well operated system of maintenance for buildings and equipment has the effect of being a very effective disaster mitigation measure in terms of cost and facility usage. It ensures the most economic way to keep the building and equipment in the best of form for normal use, given the original design and materials (http\\www.oas.org\en\cdmp).

When buildings are neglected, defects can occur which may result in extensive and avoidable damage to the building fabric or equipment. Poor maintenance has resulted in damage and deterioration to some residential buildings in Nigeria. Neglect of maintenance especially in relation to replacing electricity cables after thirty of use can also give rise to fire and safety hazards, which could result in the property owner being found liable for any injuries and damages.

1.2 Statement of The Problem

The main purpose of maintenance of property is essentially to retain its values for investment, aesthetic, safety, durability, with a view to ensuring that the property is continually in good condition for habitation and to the satisfaction of the owner(s) / users and communal prestige (Brennan, 2000). Some residential have not seen any significant maintenance or show little signs of maintenance since they were constructed, some dating back to the colonial era. This has resulted in such buildings being in a dilapidated state with some being abandoned. This lack of maintenance by the owners and occupants of these facilities often leads to reduced lifespan of these buildings (Melvin, 1992), which invariably defeat the purpose for which they are developed. The problem of ownership of these buildings, where occupants regard it not as their own property and handle it without due care largely have resulted in the state in which most residential buildings find it. In some cases occupants do not recognize the building as their property and hence have passive attachment in relation to the efficient use and maintenance of the building. In order to evolve an effective good maintenance practice regime for residential property, knowledge of effectiveness of the strategies adopted in the maintenance of this properties becomes necessary, hence this study “An assessment of the impact of property maintenance on residential property in Nasarawa.

1.3 Aim and Objectives of the Study

1.3.1 Aim

The study is generally expected to assess the impact of property maintenance on residential property in Nasarawa.

1.3.2 Objectives of the Study

The specific objectives of this study are:

To Assess the current condition and state of residential buildings in the study area
To identify the underlying principal causes of poor maintenance of residential properties in Nasarawa.
To analyse the maintenance policy and practice adopted in the maintenance of residential properties in the study area
To assess the impact of property maintenance on residential property value in the study area

1.4 Research Questions

In line with objectives of this study, the following research questions shall serve as a guide to the researcher:

What is the current condition and state of residential buildings in the study area
What are the underlying principal causes of poor maintenance of residential properties in Nasarawa?
What are the maintenance policy and practice adopted in the maintenance of residential properties in the study area
Does property maintenance have significant impact on residential property value in the study area

1.5 Significance of the Study

This study is essential in the sense that it would not only contribute to knowledge and theory, but will also contribute to good maintenance practice of residential properties Nigeria. This is because the study will attempt to find out the factors that have contributed to the present state of non-maintenance of residential buildings some of which have been abandoned due to its state of deterioration.

Furthermore the study will assist managers of residential property to become aware of the current state of their building infrastructure and its effect on the safety and health of occupants and also to put in place adequate innovative measures to prevent new buildings put up to suffer deterioration which ultimately lead to increased cost in restoring these buildings to their original state.

With increasing demand for efficiency and effectiveness from workers in the public and private sector by the populace, this study will attempt to establish the linkage between the present states of residential buildings in relation to the social and economic impact it has on the occupants.

1.6 Scope and Limitation of the Study

The study is limited to the assessment of the impact of property maintenance on residential properties, the scope is limited to Nasarawa town in Nasarawa state. It is also limited by the objectives of the study as it is strictly out to assess the cause of poor maintenance and its impact of residential property value in Nasarawa.

Data gathering suffered due to delay in getting responses due to the schedule of work of especially personnel of the study area. In addition records keeping was a problem for all the institutions surveyed such that in some situation researcher had to collate the number of buildings himself. This also resulted in difficulty in identifying the buildings.

Notwithstanding the above limitations, the study results have not been affected and thus are credible, reliable and useful for any purposes of evaluation and feedback.

1.7 Operational Definition of Terms

Residential Properties: Oxford advanced learners dictionary defined residential properties as properties suitable for living in, consisting of houses rather than factories, or offices.

Property: Property is by property dictionary as anything that is owned by a person or entity, which be divided into “real property” and personal property.

Infrastructure: This is seen as a wide range of economic and social facilities crucial to creating an enabling environment for economic growth and enhances the quality of life, Nubi (2002).

Value: Value is basically the worth of a thing which depend largely on the basis of assessment and unit of measurement.

Property Value: property value according too Millington (1981) is the money obtainable from a person willing and able to purchase property when it is offered for sale by a willing seller, allowing for reasonable time for negotiation and with the full knowledge of the nature and uses which the property is capable of being put.

1.8 HISTORICAL BACKGROUND OF THE STUDY

Nasarawa Local Government area of Nasarawa state was established in 1976 during the military regime under the leadership of general Mohammed Administration, the local government have thirteen 13 wards and it consist of six department which is responsible for carried out the activities personal social primary health care agriculture and natural resources. The state derived its name from the local government Nasarawa. The local head quarter is between latitude 7.8 degree east by Karu.

The also shared boundary with Benue state, Toto Local government area and federal capital territory, the local government have a population 187220 by the 2006 census through contest in the law court it has multi ethnic Afo, Agatu, Gwandara etc.

THE PEOPLE AND THEIR OCCUPATION

The major ethnics groups are Hausa, Afo, Gwari, and Gwandara. The earliest inhabitants were predominantly farmers and some of them are fishermen they use river for their routine fishing.

Besides, they were also engaged in rearing of cattle, black dying and weaving. Meanwhile, trading is one of their major occupation as a result of the establishment of the Federal Polytechnic.

TOPOGRAPHY

From an elevation of about 1,500 to 1,000 meters, the Nasarawa descends in a series of step to the wide Benue through the northern part of the low lands forms a continuous plain about 50 kilometers wide which gradually slopes from the foot of the Nasarawa towards river benue.

The western part of the northern low land is an area of transaction, only part of it can be regarded as belonging to the Benue plains.

THE CONTRIBUTION OF URBAN INFRASTRUCTURE TO RESIDENTIAL REAL ESTATE INVESTMENT IN AWKA, ANAMBRA STATE

ABSTRACT

This project titled “The contribution of Urban Infrastructure on Residential real estate investment in Awka, Anambra State” is aimed at assessing the effects of urban infrastructure on residential real estate investment in the study area, to achieve this aim the following specific objectives shall be pursued: to identify the types of residential properties, to identify the types of infrastructure available in the study area, to access the adequacy of the infrastructure and to analyze the relationship between infrastructural facilities and property value. The researcher adopted the use questionnaire to collect data from the research population which consists of tenants, landlords, property developers and real estate firms that resides in Awka the capital of Anambra state. The use of tables, percentages and descriptive statistical tools were used to analyze the data. The results of analysis indicates that the availability of urban infrastructure positively affect the rental value of residential property this is shown clearly in the rental values of properties located in rural areas where there are no infrastructures and those found in urban areas where infrastructures such as electricity, portable water, medical centers etc are found.

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

An important barometer for measuring an urban areas functionality, liveability and development is its physical infrastructure. The efficiency of any urban area depends largely on the provision of efficient infrastructural facilities and services (Babarinde, 1998). Okusipe (1999) posited that apart from being a major pointer to environmental quality urban infrastructure is a critical agent for the socio-economic development of any urban area. He further asserted that urban infrastructure plays an important and indispensible role in economic, social and environmental aspects of life of an urban setting. It has tremendous impact on the quality of urban life. It is a key developmental asset of any country in that it provides the backbone for industrial concerns located within an urban area to effectively and efficiently drive their production processes.

Urban infrastructure cover a wide spectrum of services and facilities, namely; electricity, water, roads, walkways, waste disposal systems, communication, primary health facilities and services, schools and housing. These are more often provided by the government. Where urban infrastructure is adequately provided and efficiently managed productive and profitable land uses are usually attracted towards the area. These uses out bid/out compete less productive uses through better rent offers. This competition for locations with good urban infrastructure usually results in an increase in land and property values, either sales or rentals (Harvey 1993). This study therefore examines the contribution of urban infrastructure to residential real estate investment in Awka, Anambra state.

1.2 STATEMENT OF THE PROBLEM

The needs and important of urban infrastructural cannot be underestimated since investment in infrastructure is well connected to all factors of economic development. This always includes an increase always offset by increasing opportunities and income to the general vicinity. The closer a residential area, is to new infrastructural projects, the higher the increase in its value. However, the reverse relationship is also true as failing in infrastructural investment is closely related to hold that, decaying or neglecting infrastructure is a major determent of economic decay and recession.

The problem therefore is that, this important and significant relationship between urban infrastructures and property value has not being properly identified thereby resulting in neglect in terms of infrastructural investment especially in the study area.

1.3 AIM AND OBJECTIVES

The aim of this study is to examines the contribution of urban infrastructure to residential real estate investment in Awka, Anambra state. In order to achieve this aim, the following objectives are critical:

To identify the types of infrastructure available in the study area.
To examine the level of urban infrastructure in the study area.
To analyse the effects of urban infrastructure on residential property value in the study area.
To make appropriate recommendation on the way forward.

1.4 RESEARCH QUESTION

Below are research question derive from the objective listed above.

What are the types of urban infrastructure in the study area?
What is the level of urban infrastructure in the study area?
What are the effects of urban infrastructure on residential property values in the study area?

1.5 JUSTIFICATION OF THE STUDY

Similar studies in the past have revealed the poor state of our urban infrastructure and its consequential effect on property value with much emphasis on the relationship that exist between infrastructure and property value. However the income generation capacity of infrastructural provision to the public authorities through high rental values, rates and taxes has been neglected. This study is therefore necessary to assist public authorities in putting more efforts in infrastructural investment and as well take full advantage of the income that can be generated from such investment.

1.6 SCOPE AND LIMITATION OF THE STUDY

The research work is confined to the study of the contribution of urban infrastructure to residential real estate investment in Awka, Anambra state. It deals with rental value of residential properties such as single room, two bedroom flats and three bedroom flats which are the common types of residential properties found in the study area. The work activities however, will cover the provision of road network within a period of 2010-2015.

1.7 DEFINITION OF TERMS

Some of the key words used in this work and their meaning as contain and used in the research are:

Infrastructure: This is seen as a wide range of economic and social facilities crucial to creating an enabling environment for economic growth and enhances the quality of life, Nubi (2002).

Property: Fraister (1993), stated that properly is the subject matter of ownership that anything which belongs to a person going to exclusive right to enjoy a thing. Example being land and building, real properties, denotes interest and right inherent in the owners of the physical real estate. This cluster of right which could be made the subject of a real activities “title” that signifies the lawful right of possession.

Value: Value is basically the worth of a thing which depend largely on the basis of assessment and unit of measurement.

1.8 HISTORICAL BACKGROUND OF THE STUDY

Awka (Igbo: Ọka)^[2] is the capital city of Anambra State, Nigeria. The city was declared capital on 21 August 1991, after the creation of Anambra and Enugu state, which moved the capital from Enugu to Awka (an administrative center since pre.-colonial times). The city has an estimated population of 301,657 as of the 2006 Nigerian census, and over 2.5 million as of a 2018 estimate. The city is located at199.1 kilometres (123.7 mi), by road, directly north of Port Harcourt in the centre of the densely-populated Igbo heartland in South East Nigeria.^[3]

The West-East Federal highway links Lagos, Benin City, Asaba, Onitsha, and Enugu to Awka and several local roads link it to other important towns such as Oko ,Ekwulobia, Agulu, Enugwu-Ukwu, Abagana and Nnewi.

Strategically, Awka is located midway between two major cities in Northern Igboland, Onitsha and Enugu, which has played a significant role in its choice as an administrative center for the colonial authorities and today as a base for the Anambra State government.

“Awka has a certain kind of aura about it, because it was the place of the blacksmiths that created implements which made agriculture possible.” – Chinua Achebe

Awka is one of the oldest settlements in Igboland, established at the centre of the Nri civilisation, which produced the earliest documented bronze works in Sub-Saharan Africa, around 800 A.D., and was the cradle of Igbo civilisation at large.

The earliest settlers of Awka were the Ifiteana people, the name Ifiteana roughly translating into ‘people who sprouted from the earth.’ The people, themselves, were renowned as farmers, hunters and adept iron workers, all of whom indigenously inhabited the banks of the Ogwugwu stream, in what is now known as the Nkwelle ward of the city.^{[citation needed]}

The deity of the Ifiteana was known as Ọkịka-na-ube, or the god renowned for the spear, and the Ifiteana were known as Ụmụ-Ọkanube, or “worshippers of Ọkanube,” eventually shortened to both Ụmụ-Ọka and simply Ọka (Awka when written in its anglicised form).

In ancient times, Awka was populated by elephants, insofar that a section of the town was named Ama-enyi, with a corresponding pond, Iyi-Enyi, used for elephants to gather to drink. The elephants were hunted for their prized ivory tusks (okike), which were kept as a symbol to the god Ọkanube in every Awka home, with hunting medicine stored in the hollow of the tusk.

Over time, the town became known for metal working and its blacksmiths were prized throughout the region for making farming implements, dane guns and such ceremonial items as Oji (staff of mystical power) and Ngwuagilija (staff of Ozo men).^[5]

During pre.-colonial times, Ọka became famous as the Agbala oracle, specifically a deity that was said to be a daughter of the great long juju shrine of Arochukwu. The oracle, which Chinua Achebe used as inspiration in his book Things Fall Apart ^[6]), was consulted to whenever disputes (far and wide) occurred, until it was eventually destroyed by colonial authorities, in the early part of the twentieth century.

Before the inception of British rule, Ọka was governed by titled men known formally as Ozo and Ndichie, who were accomplished individuals in the community. They held general meetings, known as Izu-Ọka, at either the residence of the oldest man (Otochal Ọka) or a place specially designated by the titled men. He was the Nne Uzu, or ‘master blacksmith,’ irrespective of whether or not he actually knew the trade, as the only master known to Ọka was the master craftsman, the Nne Uzu.

In modern times, Awka has adopted the republican system and is currently administered by the Awka South Local Government Area. However, it still preserves its traditional systems of governance with the respected Ozo-titled men often consulted for village and community issues and a paramount cultural representative, the Eze Uzu, who is elected by all Ozo-titled men by rotation among different villages to represent the city at state functions.

Awka should not be confused with Awka-Etiti which is a town in Idemili South local government area that is often mistaken for the main capital

Pages

Friday, 14 January 2022

THE ESSENCE OF FACILITY MANAGEMENT ON PROPERTY DEVELOPMENT

Friday, 7 January 2022

ANALYSIS OF FACTORS AFFECTING RESIDENTIAL PROPERTY DEVELOPMENT PATTERNS IN OSOGBO, OSUN STATE NIGERIA

Sunday, 2 January 2022

IMPACT OF COMMUNITY DEVELOPMENT ON COMMERCIAL PROPERTY

Friday, 31 December 2021

ASSESSMENT OF THE IMPACT OF VACANCY AND OCCUPANCY RATE ON RESIDENTIAL PROPERTY INVESTMENT MARKET

THE EFFECT OF RURAL URBAN MIGRATION ON PROPERTY VALUES IN OSOGBO OSUN STATE

Wednesday, 29 December 2021

AN ASSESSMENT OF THE IMPACT OF PROPERTY MAINTENANCE ON RESIDENTIAL PROPERTY IN NASARAWA

THE CONTRIBUTION OF URBAN INFRASTRUCTURE TO RESIDENTIAL REAL ESTATE INVESTMENT IN AWKA, ANAMBRA STATE