IMPACT OF RURAL-URBAN MIGRATION ON DEMAND FOR RESIDENTIAL PROPERTY

THE IMPACT OF RURAL URBAN MIGRATION ON DEMAND FOR RESIDENTIAL PROPERTY IN NIGERIA CITIES

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

Rural-urban migration was formerly regarded as favourable in economic development. Today, it has become one of the most embarrassing problems in the Nigerian development experience.

Rural-urban migration is ‘‘the phenomenon of a historically unprecedented movement of people from the rural countryside to the burgeoning cities of Africa, Asia and Latin America’’ (Todaro, 1997). ‘‘It is the movement of people from rural areas into cities’’ (Wikipedia, 2013). Some time ago, migration existed internally to enable excess labour to be taken slowly from the rural areas to provide workforce for industries in the urban areas and therefore aid industrial growth. However, experience in Nigeria has shown that the rate of rural-urban migration has ceaselessly outweighed the rate of job creation and having an overweight on the social and infrastructural amenities available in the urban areas which equally reflects on housing demand.

Housing is one of the best indicators of a person’s standard of living and his place in the society. Like food and clothing, housing ranks among the three (3) basic human needs. Its availability is very crucial to the welfare of every human. Housing, literally is defined as buildings or other shelters in which people live, a place to live, a dwelling and to Nations a critical component in social and economic fabric. To most groups housing means shelter but to others it means more as it serves as one of the best indicators of a person’s standard of living and his or her place in the society (Nubi, 2008). It is a priority for the attainment of living standard and it is important to both rural and urban areas. These attribute make demand for housing to know no bound as population growth and urbanization increase very rapidly and the gap between housing need and supply becomes widen.

According to Olofinji (2016), demand for residential property demand can be explained as the willingness and ability of housing consumer to pay for a particular dwelling, depending upon such consumer’s income, house type, location preferences and local prices.

In other words, demand for residential property at certain price refers to the value that is placed on a house linked with the satisfaction derived in such house.

Residential property demand in urban center is a manifestation and reflection of different household desires to live in an urban center. The desire of people to live in an urban center especially in Owerri is increasing at an alarming rate. Owerri for instance has a teeming population that exceeds the resources inherent, and the city may indeed witness a population explosion if urgent measures are not taken to curtail it.

It is against this introductory background of the study that the researcher has intended to examine the impact of rural urban migration on demand for residential properties in Nigeria cities with particular reference to Owerri Municipal of Imo State in Nigeria.

1.2   STATEMENT OF THE PROBLEM

At a glance to everyone who visits Owerri Municipal, it is not farfetched to notice the influx of rural population into the area which is evident in the over-crowdedness of Douglas road, Wetheral road, School road etc. This may not be far from the fact that these rural population are seeking for “better life”. In some other places like Oguamanam Street, Uche Street, Uche street extension, Lobo Street to mention but a few, as much as these areas are overcrowded, most people are found living in indecent building apartments due to their socio-economic background which cannot cope with an ever increasing price of decent houses.

Ever since Owerri became the state capital of Imo state, a lot of people have migrated and still migrate from the rural areas and even from some urban areas into it. They come in search of job opportunities, apprenticeship, trading, school etc. Due to this migration of people from different areas into Owerri Municipal, problems of accommodation started, overcrowding on social infrastructure also started which brought about ageing of the infrastructure, damages on the electrical fittings and plumbing fittings of houses, bad ground water due to excess waste that penetrates in the ground etc. Many people live in crowded areas which in turn affect the human health, living standard and the structural members of the city.

On the other hand, it may be the cause of traffic congestion, delayed services in banks, hospitals, and shopping centers. Low quality education in schools in Owerri municipal may also be an issue caused by rural-urban migration. It may have also been the reason for the over utilization of facilities yielding impacts such as  cracking of road, emergence of pot holes, wear-off on buildings etc.

Furthermore, observation has shown that government policies have been in favour of urban development, by purposely and continuously creating employment opportunities, educational opportunities and other infrastructural amenities more in the urban areas compared to the rural areas. Owerri Municipal is not an exemption to this fact. Currently, there exist about three (3) government owned Community Primary Schools clustered together within the boundaries of Tetlow Street and Royce Road whereas there are other surrounding communities which do not have up to two schools to support the entire community. It is noteworthy to also mention that some of the existing schools in these rural communities are not up to standard; therefore, people in search of better education may simply migrate from their rural communities into Owerri Municipal.

It may also be noticed that rural-urban migration have resulted to inequality in the development and quality of life between the rural and urban areas, and therefore may be an enhancing factor to rural-urban migration. People could be attracted to urban areas because they think they will have greater opportunities there.

It is a general notion that the rural areas in Nigeria are being affected by several incapacities in various levels of severity such as: inaccessibility, seclusion, under development, poverty, drabness, boredom, ignorance, depopulation, hunger, and all types of sicknesses. Migration from rural to urban areas may lead to reduction in the number of rural populace and on the other hand may result to high rate of demand on urban housing in cities to which they migrated to.

Therefore, there is need for studies that will focus on the reduction of residential property / housing demand in Owerri Municipal by discouraging rural-urban migration. Such studies will be important so as to create awareness on the present situation, improve understanding and proffer solutions to the issue. This research work is part of the endeavour to contribute towards filling this gap and thus focuses on the impact of rural-urban migration on demand for residential properties in Nigeria with references to  Owerri Municipal, Nigeria.

1.3   AIM AND OBJECTIVES THE STUDY

The aim of this study is to examine the impact of rural-urban migration on demand for residential properties in Nigeria – a case study of Owerri Municipal.

OBJECTIVES

Specifically the objectives of the study are;

1. To ascertain the causes of rural-urban migration and its impact on demand for residential properties in Owerri Municipal.
2. To determine the setbacks which rural-urban migration has on residential property demand in Owerri Municipal.
3. To suggest ways of discouraging rural-urban migration thus reducing its impact on housing demand in Owerri Municipal.

1.4   RESEARCH QUESTIONS

The following research questions are posed to guide the study.

1. What factors lead to rural-urban migration?
2. What are the impacts of rural-urban migration on the

demand for residential properties in Owerri Municipal?

• What mechanisms are to be adopted in solving the problem of rural-urban migration in other to reduce its impact on residential properties demand in Owerri Municipal?

1.5   RESEARCH HYPOTHESES

The hypothesis for this research work is as follows;

H₀: The rate of residential properties / housing demand in Owerri municipal is not dependent on rural-urban migration.

H₁: The rate of residential properties / housing demand in Owerri municipal is dependent on rural-urban migration.

1.6   SCOPE OF STUDY

The scope of this study is limited to rural-urban migration and its impact on residential properties demand in Nigeria, with the primary focus on Owerri Municipal in Imo State.

Furthermore, the research assessed the high rate of housing demand attributed to rural-urban migration which may be associated with various detrimental consequences that will be unfolded in the course of this research.

Hence, the study is limited to showing the adverse impact rural-urban migration has on the demand for housing in Owerri Municipal. Generally, the study looked at the problems, impacts, causes, and how they can be tackled.

1.7   SIGNIFICANCE OF THE STUDY

This work is expected to provide a proper understanding for the subject matter under study, thus it will be of immense help in tackling the problem of its practical perspective.

The study will supply the much needed background in tackling the impact of rural-urban migration on housing demand. Most of the developed countries today are great because they make use of research findings, which often originate from research works.

Therefore;

– The study when successfully completed will be of value to the educational planners and the government.

– The study will be of importance to researchers/students working on related topics.

– The study will reveal the reasons why people migrate from rural area to urban centers and the impact of such movement on housing demand in the study area.

– The study will also be an addition to previous works on the topic, thus, an addition to knowledge.

1.8   THE STUDY AREA

Owerri Municipal is a local government area of Imo state, Nigeria. Its headquarters are in the city of Owerri. Owerri Municipal council, formerly the headquarters of old Owerri local government area(comprising the present day Owerri Municipal, Owerri north, Owerri west and Ngor-Okpala local government areas) became a Municipal council on 15^th December 1996.

The council has an urban setting with one autonomous community made up of 5 indigenous kindred (Owerri nchiise) vis: Umuororonjo, Amawom, Umuonyeocha, Umuodu and Umuoyima, under the rulership of one permanent traditional ruler, presently he is the Eze of Owerre (a.k.a Ozuruigbo of Owerri). The apex traditional institution in the area is the “Oha Owerri” elder’s council, which is the area, is also the judicial aim of government (settling all dispute and other matters). “Onyeishi ala Owerri” is the traditional chief priest of the community. The entire women of “Owerri nchiise” are also under one umbrella body- the “Udodinindom Owerri”.

Generally, the five kindred of Owerri Municipal council are: Amawom, Umuodu, Umuonyeocha, Umuoronjo, Umuoyima. Owerri Municipal also covers the following areas: New Owerri, Ikenegbu, Aladimma, G.R.A and Work layout. Entrances into the Municipal council are Okigwe road, Onitsha road, Port-harcortroad, Aba road and Mbaise road.

1.8.1        LOCATION AND SITE

Owerri Municipal in Owerri, Imo state, Nigeria is located at approximately 5.4833N (Latitude in decimal degrees) and 7.03041E (longitude in decimal degrees). That is 5.4833N 7.035E coordinates: 5.485N 7.035E

Nigeria->Imo state->Owerri->Owerri Municipal Time zone: WAT (UTC+1) Owerri Municipal is bounded on the north by Amakohia, on the north east by Uratta, on the east by Egbu, on the east by Naze, on the south by Nekede and on the north east by Irete.

(a)    Rainfall

The study area is within the rain forest belt of Nigeria. Two distinct condition or season (ie wet and dry season) exists. These two regimes are derived from the different air masses prevailing over the country at different times of the year namely; the dry northeast air mass of Sahara origin (tropical continental air mass) which is responsible for the dry season. It blows across the Sahara desert towards Nigeria. This wind pushes the southeast wind further towards the coast where the tropical front is now formed. It is cold, dusty and dry; hence, it does not bring rain. Rather, it brings very cold, dusty, and dry weather called harmattan. It usually starts from November and ends around February and the humid tropical maritime air mass (south west trade wind) originating from the south atlantics. It blows from the high pressure belt area in the south in June to the low pressure belt in the north. This then pushes the tropical continental air mass towards the north where the inter-tropical front is formed. That is, the wind blows across the Atlantic oceans towards the coast of Nigeria. The wind is warm and wet; hence it brings rainfall to the study area. The rainfall decreases towards the northern part of Nigeria. It usually starts around March and ends around October with a short dry period in august called august break.

The rainfall pattern in the area is oscillatory, that is convectional rainfall occurs in area intensively heated like the study area. This results in heavy rain, accompanied by thunder and lightning. The area is characterised by heavy winds, lightning and thunder storm accompanied with heavy rain. The two peak periods are usually between June and September. The annual rainfall ranges from 1600-2900mm.

MANAGEMENT OF MULTI TENANTED PROPERTIES AND ITS ASSOCIATED PROBLEMS IN OSHOGBO, OSUN STATE

MANAGEMENT OF MULTI TENANTED PROPERTIES AND ITS ASSOCIATED PROBLEMS IN OSHOGBO, OSUN STATE

ABSTRACT

It is a broad knowledge that one of the features of property management which distinguishes it from other form of investment portfolio is a serious requirement of management in recent time. 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 institution. This research work is aim at examining the management of multi tenanted properties and its associated problems in oshogbo, osun state. To achieve this aim relevant literature in the topic were review sample techniques was use to administered structural questionnaire on the sampling size of 46 respondents. The relevant data collected were analyzed using frequency and percentage. The major findings of the study, shows that there is share of responsibility between the landlord and tenants. Which are the external repairs is done by the landlord, while the internal repairs is done by tenants. The landlords undertake routine inspection of the property on quarterly basis. From the research findings there is general no provision of additional facilities to be paid as service charge by tenants. It was however; recommend that the landlord should provide potable water to the shopping complex and fence, entrance gate so that those hawkers that stand by the front view of the shops to sell should be scrapped out to provide enough space for parking.

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF STUDY

It is a broad knowledge that one of the feature of property 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

Property 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 property 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.

Property manager seem to be of more relevant in the current economic dispensations. The global collapse of the capital market with its attendants effects, which has not spare African countries like Nigeria, are seen to be compelling investors to redirect their investment ventures in to real estate, especially with visible foreign and local investment in commercial properties. These are properties acquired for the purpose of yielding regular inflation of income to investors. Most commercial properties are often relatively large and complex buildings, some of which are multi-storied or highrise type, the complexity involved in terms of the size of the structures, diverse and multiple occupants informed the need for specialized skill and training for efficient and effective service delivery.

Property management, according to Scarrett (1995) must be based on the terms of the contractual agreement between the parties on the one hand, on an appreciation and interpretation of the particular owners objectives on the other hand, this thus requires a high degree of compliance with the provisions and terms as well as performance on the part of the parties. In performing this function, the management surveyor encounters problem in the management of different type of properties. This dissertation will look in to the management strategies adopted in commercial properties. Its problems, prospects of commercial properties and to suggest possible solution to those problems. In conclusion , there is urgent need to identify the problems of managing multi-tenanted properties unless there is of attitudes as to scope, functionality, style and mode of the property construction and eventual management, that we need not only to build what is management. Nigeria will be making history and destroying it immediately thereafter. A country that goes on building structure but fails to effectively manage them burns its wealth and resources in a future it is a country with pride.

1.2       STATEMENT OF PROBLEM

Most properties are often relatively large and complex buildings; some of which are multi-storied or high rise type. These structure is often large diverse and made up of multiple occupants. The property manager encounters problem in the management of different type of properties. These problems include rent default, noncompliance with the tenancy agreement  and poor tenant selection, thus the crux of this research.

1.3       AIM AND OBJECTIVES

This project is aimed at examine the management of multi tenanted properties and its associated problems in Oshogbo, Osun State

While the specific objectives are as follows:

1. To review the concept of property management and maintenance service.
2. To examine the property management approach in the study area.
3. To identify the problems associated with the management of multi-tenanted commercial property in Ibadan.
4. To suggest method of solving these identified problems towards achieving better management techniques.

1.4       RESEARCH QUESTION

1. What is the concept of property management and maintenances service?
2. What is the property management approach in the study area?
3. What are the problems associated with the management of multi-tenanted property?
4. 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:

1. Inadequate finance for gathering information from one place to another.
2. Inadequate information might be given which may not help to proceed on the research work.
3. 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

1. Management: is the system of directing, organizing and controlling of available human skills and financial resources to achieve a stated goal.
2. Commercial property: this refers to properties mainly developed and used for maximize rental income / profit. They are built to provide accommodation for business accommodation e.g. shops, offices, show rooms etc.
3. 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

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.