ENEMS PROJECT: residential property

Showing posts with label residential property. Show all posts

Saturday, 4 March 2023

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

(A CASE ABUJA MUNICIPAL AREA COUNCIL)

CHAPTER ONE

1.1 INTRODUCTION

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

1.2 BACKGROUND KNOWLEDGE OF THE CASE STUDY

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

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

1.3 STATEMENT OF THE PROBLEM

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

1.4 PURPOSE OF THE STUDY

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

1.5 OBJECTIVE OF THE STUDY

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

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

1 .6 SIGNIFICANCE OF THE STUDY

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

1.7 RESEARCH METHODOLOGY

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

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

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

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

1.8 RESEARCH QUESTIONS

The following are research questions tray will guide the study.

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

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

1.9 SCOPE OF THE STUDY

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

1.10 LIMITATION OF THE STUDY

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

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

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

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

1.11 RESEARCH HYPOTHESIS

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

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

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

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

1.12 DEFINITION OF RELEVANT TERMS

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

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

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

REFERENCES

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

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

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

Thursday, 19 January 2023

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

ABSTRACT

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

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

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

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

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

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

1.2 Statement of Problems

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

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

1.3 Aim and Objectives of the Study

Aim

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

Objectives

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

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

1.4 Research Questions

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

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

1.5 Significance of the Study

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

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

1.6 Scope and Limitation of the Study

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

Limitation

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

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

1.7 Definition of Terms

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

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

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

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

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

Saturday, 31 December 2022

AN EVALUATION OF THE IMPACT OF DEVELOPMENT CONTROL ON RESIDENTIAL PROPERTY IN PORT HARCOURT METROPOLIS

ABSTRACT

This project isan evaluation of the impact of development control on residential property value in Port Harcourt metropolis. In the course of carrying out this research the primary data was collected through questionnaire and oral interview with the Rivers State Development Authority and some real estate property developer in the study area. 100 Questionnaire was administered which 80 was collected back upon which the data presentation and analysis depends on. The instrument used in analyzing the data was purposive and tabular form. The research shows that developer and the development control officials tend to accused each other of complicity in development of residential property process in Abuja. the researcher therefore recommend that there is urgent need for effective force and good communication skill and rapid awareness aiming at creating adequate effectiveness on physical environmental issues in Port Harcourt metropolis.

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Property development control forms an integral part of the planning practice. It is the basic means by which the state intervenes to regulate the use and development of land in order to implement local and national planning policies. Most significantly it is the part of the planning process in which members of the public come into contact with local planning authorities.

Today, property development control comes under considerable criticism about the nature of decisions taken, and the ways in which they are taken. One hears complaints that sluggishness discourages development; that its complexity is excessively costly; And that its nature stifles initiative. (Amos, 1980). Development control is not appreciated by the general public mainly because of the restrictions it imposes on the aims and aspiration of the developers.

Originally, the rationale for the introduction of state control on private development was to achieve objectives of safety and better health in order to create an improved environment for the benefit of the community. However, as the role of the state expanded and the extent of its intervention increased the definition of the ‘environment’ subject to planning control has changed. From being wholly concerned with the physical form and content of development it now embraces the social and economic consequences of development. As a result, development control has been used to implement planning strategies for different purposes; for example to minimize the negative effect of urban growth, to check the menace of market forces and ensure social equity, as well as to support economic growth (Litchfield & Darin Drabkin, 1980).

Therefore, property development control is a tool, sometimes used to achieve its original objectives of safety and better health; Sometimes to implement planning strategies; and in some cases to do both. Although it continues to regulate the use of land, while planning strategies have widened in scope, development control has proved incapable of meeting additional demands. Since development control is used to implement planning policies, which are normally reflected in planning legislation, physical development plans and other associated planning documents, the failure to achieve development planning objectives may be due to the pursuit of inappropriate policies, to the application of inflexible standards and regulations, or both, which is why Koenigsberger (1975), Rivkin (1978) and McAuslan (1985) comment that development control practices are inappropriate, ineffective and inequitable in their operation in most Third World cities.

They argue that developing countries stand to benefit little from the transplanting of regulations that have evolved in different social soils with differing political and economic climates. Another criticism is that planning agencies in developing countries lack the power and resources to perform efficient and effective development control.

Property development control is seen as a mechanism to maintain standards. It is process laid down by legislation, which regulates the development of land and building. It is the professional activity carried out by town planners in order to ensure compliance with the approved master plan thereby ensuring orderliness.

In line with the above definition, development control actually regulates any building or rebuilding operations in, on and under the land. It also ensures an orderly growth of settlements by stipulating adequate standards for all aspects of land-use through the provision of adequate lighting, ventilation, open spaces and other socio-cultural facilities that make life worth living. The power to grant or refuse as well as attach conditions to permissions for development to take place gives the public agencies the big teeth.

Ogunsesan (2004) opined that development control is the “front line‟ of planning and the part, which affects the general public most. There is a direction in the exercise of development control on developers. The direction according to Ogunsesan (2004) is the objectives of development control, which include: the protection and enhancement of the built environment; the coordination of both public and private investments in land and property to ensure that land is efficiently used; and the control of pollution. In development control process, time is a very important factor. There are two types of time factors in the development control process as pointed out by Faludi (1973): “internal and external time lag”. The internal time lag as he explained is the time it takes to act upon information received, while the external time lag, he explains as the time it takes for the action to be effected.

Property development control is carried out by planning authorities that have legal powers conferred on them to ensure that development is secured. The authorities according to Faludi (1973) are empowered to: plan, promote and secure the physical development and environmental improvement by economic; as financial developers they can initiate planning schemes and develop the area wholly or partly‟. Kimaryo (1992) is of the view that „though the planning authorities are empowered legally to carry out their duties, it may still be restricted. Its effectiveness reduced by lack of political backing and support from the top echelon of government functionaries‟.

Furthermore, development control is seen as a powerful implementation weapon in the planning armory. Positive encouragement is given to developers to compel them to willingly develop their land with due respect to the requirement of the planning authorities. Public enlightenment is usually embarked upon which tend to encourage the public to want some sort of control over physical development. Communication is a vital tool necessary for development control to succeed. An effective and efficient communication ensures „control development with people and not for people‟; for if people are carried along in development control process, the authority will be able to guide development with ease and achieve their set objectives of a well planned built-up area with good road network, building set-backs, ventilation, lighting and pollution free environment. On the other hand, if the members of the public are not informed, they may not accept the idea of control, with feelings that since they owned the land, they can as well carry out development the way they want and at their own time without due consideration.

1.2 Statement of Research Problem

Rural- urban migration has caused congestion in the urban areas and left the towns and cities sprawling endlessly into the countryside with dire consequences for the provision of essential urban infrastructure. That is, the rate of expansion of each of old and newly emerging town led to the emergence of uncoordinated land-uses, winding road network, traffic congestion, uncoordinated provision and distribution of socio-physical infrastructure, uncollected waste and the like, amongst others with great impact on the socio-economic well being of the inhabitants. All these are resultant effects of uncontrolled development in both rural and urban settlements in Nigeria.

The rapid growth of our settlements, particularly urban areas need to be controlled to prevent chaotic and haphazard physical growth and development, which certainly takes place in the absence of any development control measure. However, some of the rationales for effective development control are the achievement of balanced, coordinated and good development of the environment; it ensures structural soundness and the adequate provision of necessary utilities, services and facilities for the proposed buildings; protection and the development of the environment so that the activities of men do not have adverse effects on it. This uncontrolled development has led to the environmental situation as presently witnessed in some squatter settlements of Abuja and other big town and cities in Nigeria. It is against this background that this study seek to evaluate the impact of property development control on residential property in Karu, Nasarawa State.

1.3 Aim and Objectives of the Study

The aim of this project is to evaluate the impact of development control on residential property value in Port Harcourt metropolis.

To achieve the aim above the following objectives were pursued

To examine the effectiveness of development control in the Study Area
To identify the functions of property development control
To evaluate the impact of the development control on residential property value
To identify the possible problems militating against the effectiveness and efficiency of development control in the study area.

1.4 Research Questions

How effective is development control inPort Harcourt metropolis?
What are the functions of development control?
What impact has development control made to real estate development in Port Harcourt metropolis?
What are the possible problems militating against the effectiveness and efficiencyof property development control in the study area?

1.5 Significance of the Study

This project will help to overcome the challenges that are currently facing in development authority in Rivers state especially Port Harcourt metropolis by the time this project is completed as it will serve as an eye opener on relevance of development control towards effective and efficient development of urban and rural areas in Nigeria.

The result of this study will enlighten property developers and investors on the need to comply with development control authority as development control generally impact positively on residential property development.

Students and other researchers will find this research useful as it will serve as reference to the department of estate management and valuation.

1.6 Scope and Limitations of the Study

There are different types of property development, this project mainly concern on the evaluation of the impact of development control on residential property value in Port Harcourt metropolis.

In the course of carrying out this study several problems were encountered among which are:

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

Uncooperative attitude of Respondents: Some respondents were very reluctant in responding to the research questions which tried to affect the research but the researcher make concerted effort to convinced them.

1.8 DEFINITION & OPERATIONAL OF TERMS

Development: used here means an event constituting a new stage in a changing situation i.e. process development or being developed
Control: implies the power to influence or checking direct result of a survey or experiment of an intelligence of organization.
Impact: these means to have a strong effect on something either positive or negative.Residential: means involving living at the place where you are working, studying or being looked after.
Property: a thing or things belonging to someone or possessions collectively i.e. an attribute, quality or characteristics of something.

1.9 HISTORICAL BACKGROUND OF THE STUDY

Rivers State, also known as Rivers, is a state in the Niger Delta region of southern Nigeria (Old Eastern Region).^[5] Formed in 1967, when it was split from the former Eastern Region, Rivers State borders includes; Anambra and Imo on the north, Abia and AkwaIbom on the east, and Bayelsa and Delta on the west. The state capital, Port Harcourt, is a metropolis that is considered to be the commercial center of the Nigerian oil industry.

With a population of 5,198,716 as of the 2006 census, Rivers State is the 6th most populous state in Nigeria.^[8] Rivers State is a diverse state that is home to many ethnic groups, the majority being Igbo or Igboid, but also including the Ogoni and Ijaw. The state is particularly noted for its linguistic diversity, with 28 indigenous languages being said to be spoken in Rivers State, the most dominant of which are the Igbo speaking groups, the Ogoni and Ijaw languages.^[9] Rivers State is the 26th largest state by area, and its geography is dominated by the numerous rivers that flow through it, including the Bonny River.

The economy of Rivers State is dominated by the state’s booming petroleum industry. Although the rise of the oil industry has led to increased revenue for the state government, mismanagement and corruption have prevented the state from rapid development and meaningfully tackling poverty.^[11] During the 2000s, Rivers State saw a rise in the number of cult killings committed within the state.^[12] In 2019, Governor EzenwoNyesomWike declared Rivers State to be a Christian state because it is made up of 90% Christians and 10% orthodox with few strangers practicing Islam unconventionally.

Geography

Rivers State is a predominantly low-lying pluvial state in southern Nigeria, located in the eastern part of the Niger Delta on the oceanward extension of the Benue Trough.^[19] The inland part of the state consists of tropical rainforest, and towards the coast, the typical Niger Delta environment features many mangrove swamps. Rivers State has a total area of 11,077 km² (4,277 sq mi), making it the 26th largest state in Nigeria. Surrounding states are Imo, Abia and Anambra to the north, AkwaIbom to the east and Bayelsa, Delta to the west. On the south, it is bounded by the Atlantic Ocean. Its topography ranges from flat plains, with a network of rivers to tributaries.

Climate

Ogoni Climate activists and others in Port Harcourt protesting environmental degradation in 2015.

Rainfall is generally seasonal, variable, as well as heavy, and occurs between the months of March and October through November. The wet season peaks in July, lasting more than 290 days. The only dry months are January and February having little to no effect.

Total annual rainfall decreases from about 4,700 mm (185 in) on the coast, to about 1,700 mm (67 in) in the extreme north. It is 4,698 mm (185 in) at Bonny along the coast and 1,862 mm (73 in) at Degema. For Port Harcourt, temperatures throughout the year are relatively constant with little variation throughout the course of the seasons. Average temperatures are typically between 25 and 28 °C (77 and 82 °F). Some parts of the state still receive up to 150 mm (6 in) of rainfall during the dry period. Relative humidity rarely dips below 60% and fluctuates between 90% and 100% for most of the year.

Wednesday, 28 December 2022

ANALYSIS OF THE IMPACT OF PLANNING CONTROL ON RESIDENTIAL PROPERTY VALUE IN NASARAWA STATE

(A CASE STUDY OF NASARAWA TOWN)

ABSTRACT

This project analyze the impact of planning control on residential property value in Nasarawa state with the aim to identify possible problem and find possible solution. In the course of carrying this research the primary data was collected through questionnaire and oral interview with the Nasarawa State Urban Development Board and some real estate property developer in the Nasarawa town. 100 Questionnaire was administered which 80 was collected back upon which the data presentation and analysis depends on. The instrument used in analyzing the data was purposive and tabular form. The research shows that developer and the development control officials tend to accused each other of complicity in development of residential property process in Nasarawa. the researcher therefore recommend that there is urgent need for effective force and good communication skill and rapid awareness aiming at creating adequate effectiveness on physical environmental issues in Nasarawa town and Nasarawa State at large.

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Planning control forms an integral part of the planning practice. It is the basic means by which the state intervenes to regulate the use and development of land in order to implement local and national planning policies. Most significantly it is the part of the planning process in which members of the public come into contact with local planning authorities (Ogunsesan, 2018).

Today, planning control comes under considerable criticism about the nature of decisions taken, and the ways in which they are taken. One hears complaints that sluggishness discourages development; that its complexity is excessively costly; And that its nature stifles initiative. (Okpala, 2018). Development control is not appreciated by the general public mainly because of the restrictions it imposes on the aims and aspiration of the developers.

Therefore, planning control is a tool, sometimes used to achieve its original objectives of safety and better health; Sometimes to implement planning strategies; and in some cases to do both. Although it continues to regulate the use of land, while planning strategies have widened in scope, development control has proved incapable of meeting additional demands. Since development control is used to implement planning policies, which are normally reflected in planning legislation, physical development plans and other associated planning documents, the failure to achieve development planning objectives may be due to the pursuit of inappropriate policies, to the application of inflexible standards and regulations, or both, which is why Olayiwola et al (2016), comment that development control practices are inappropriate, ineffective and inequitable in their operation in most Third World cities.They argue that developing countries stand to benefit little from the transplanting of regulations that have evolved in different social soils with differing political and economic climates. Another criticism is that planning agencies in developing countries lack the power and resources to perform efficient and effective development control (Ogundele, Ayo and Aigbe, 2021).

Planning control is seen as a mechanism to maintain standards. It is process laid down by legislation, which regulates the development of land and building. It is the professional activity carried out by town planners in order to ensure compliance with the approved master plan thereby ensuring orderliness(Ogundele, Ayo and Aigbe, 2021)..

In line with the above definition, planning control actually regulates any building or rebuilding operations in, on and under the land. It also ensures an orderly growth of settlements by stipulating adequate standards for all aspects of land-use through the provision of adequate lighting, ventilation, open spaces and other socio-cultural facilities that make life worth living. The power to grant or refuse as well as attach conditions to permissions for development to take place gives the public agencies the big teeth.

Ogunsesan (2004) opined that planning control is the “front line‟ of planning and the part, which affects the general public most. There is a direction in the exercise of development control on developers. The direction according to Ogunsesan (2004) is the objectives of development control, which include: the protection and enhancement of the built environment; the coordination of both public and private investments in land and property to ensure that land is efficiently used; and the control of pollution. In development control process, time is a very important factor. There are two types of time factors in the development control process as pointed out by Faludi (2019): “internal and external time lag”. The internal time lag as he explained is the time it takes to act upon information received, while the external time lag, he explains as the time it takes for the action to be effected.

Planning control is carried out by planning authorities that have legal powers conferred on them to ensure that development is secured. The authorities according to Faludi (2019) are empowered to: plan, promote and secure the physical development and environmental improvement by economic; as financial developers they can initiate planning schemes and develop the area wholly or partly‟. Fagbohun(2017) is of the view that „though the planning authorities are empowered legally to carry out their duties, it may still be restricted. Its effectiveness reduced by lack of political backing and support from the top echelon of government functionaries‟.

Furthermore, planning control is seen as a powerful implementation weapon in the planning armory. Positive encouragement is given to developers to compel them to willingly develop their land with due respect to the requirement of the planning authorities. Public enlightenment is usually embarked upon which tend to encourage the public to want some sort of control over physical development. Communication is a vital tool necessary for development control to succeed. An effective and efficient communication ensures control development with people and not for people‟; for if people are carried along in development control process, the authority will be able to guide development with ease and achieve their set objectives of a well-planned built-up area with good road network, building set-backs, ventilation, lighting and pollution free environment. On the other hand, if the members of the public are not informed, they may not accept the idea of control, with feelings that since they owned the land, they can as well carry out development the way they want and at their own time without due consideration.

1.2 Statement of Research Problem

Rural- urban migration has caused congestion in the urban areas and left the towns and cities sprawling endlessly into the countryside with dire consequences for the provision of essential urban infrastructure. That is, the rate of expansion of each of old and newly emerging town led to the emergence of uncoordinated land-uses, winding road network, traffic congestion, uncoordinated provision and distribution of socio-physical infrastructure, uncollected waste and the like, amongst others with great impact on the socio-economic well being of the inhabitants (Aluko, 2020). All these are resultant effects of uncontrolled development in both rural and urban settlements in Nigeria.

The rapid growth of our settlements, particularly urban areas need to be controlled to prevent chaotic and haphazard physical growth and development, which certainly takes place in the absence of any development control measure. However, some of the rationales for effective development control are the achievement of balanced, coordinated and good development of the environment; it ensures structural soundness and the adequate provision of necessary utilities, services and facilities for the proposed buildings; protection and the development of the environment so that the activities of men do not have adverse effects on it. This uncontrolled development has led to the environmental situation as presently witnessed in some squatter settlements of Nasarawa and other big town and cities in Nigeria. It is against this background that this study seek to analyze the impact of planning control on residential property value in Nasarawa state with particular reference to Nasarawa town.

1.3 Aim and Objectives of the Study

The aim of this project is to analyze the impact of planning control on residential property value in Nasarawa State

To achieve the aim above the following objectives were pursued

To examine the effectiveness of planning control in Nasarawa town
To identify the functions of planning control
To evaluate the impact of the planning control on residential property value in Nasarawa
To identify the possible problems militating the effective and efficient planning control in the study area.

1.4 Research Questions

How effective is planning control in Nasarawa town?
What are the functions of planning control?
What impact has planning control made to residential property value in Nasarawa?
What are the possible problems militating the effective and efficient planning control in the study area?

1.5 Significance of the Study

This project will help to overcome the challenges that are currently facing in planning and development authority in Nasarawa state by the time this project is completed as it will serve as an eye opener on relevance of planning control towards effective and efficient development of urban and rural areas in Nigeria.

Students and other researchers will find this research useful as it will serve as reference to the department of estate management and valuation.

1.6 Scope and Limitations of the Study

There are different types of property development, this project mainly concern on the impact of development control on residential property development in Abuja.

The following are the limitations of the study

Lack of proper response from the developer’s point of view.
The financial aspect was a bit difficult.
There was no previous work available to reference with.
And the absence of the group leader makes the data analysis slow.

1.8 DEFINITION & OPERATIONAL OF TERMS

Development: used here means an event constituting a new stage in a changing situation i.e. process development or being developed.
- Control: implies the power to influence or checking direct result of a survey or experiment of an intelligence of organization.
- Impact: these means to have a strong effect on something either positive or negative.
- Residential: means involving living at the place where you are working, studying or being looked after.
- Property: a thing or things belonging to someone or possessions collectively i.e. an attribute, quality or characteristics of something.

1.9 HISTORICAL BACKGROUND OF THE STUDY

Nasarawa state was created 1^st October 1996 by the general Abacha government regime, it is a state in north central Nigeria, Lafia is the state capital, the was created out of the following neighboring state of plateau, located in north-central region of Nigeria, it is bordered on the west by the federal capital territory, then north by Kaduna, then south by Benue and Kogi and also the east Plateau and Taraba states.

Nasarawa state has diverse range of ethnic group indigenous to the state.

According to 2006 census a little less than 2million populated people reside in the state.

The state has 13 local governments namely:

Toto,
Obi,
NasarawaEggon
Nasarawa,
Lafia,
Kokona,
Keffi,
Doma,
Keana,
Karu,
Awe
Akwanga
Wamba.

And 29 languages spoken, Nasarawa is home to many tertiary institutions namely:

Federal University Lafia

Federal Polytechnic Nasarawa

Nasarawa State University Keffi

State federal college of education.

Nasarawa state polytechnic etc

Economic activities: of the state are mainly Agriculture, cash crops such as yam, cassava, Andegusi(melon). Production of mineral such as salt is also another major economic activity in the state; Nasarawa produces a large proportion of the salt and bauxite consumed in the country.

Geography issue: Nasarawa state is bounded in the north Kaduna state, in the west by the proximity Abuja Federal Capital Territory in the south by Kogi and Benue states and in the east by Taraba and Plateau states. A network of roads exist within the state linking all the rural areas and major town the Nigeria Rail ways Corporation (NRC) operate train service from kuru, Gombe, and Maiduguri.

Friday, 14 January 2022

AN ASSESSMENT OF THE EFFECTS OF POLLUTION ON RESIDENTIAL PROPERTIES IN MARARABA NASARAWA STATE

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The present generation and the coming generations have to solve three grave problems, namely, population poverty and pollution if they have to survive. Pollution being the most dangerous problem likes cancer in which death is sure but slow. Pollution is assuming dangerous proportions all through the world. This is the gift of modern living, industrialization and urbanization. Unless timely action is taken we have a forbid and bleak future for the world. The word noise is derived from the Latin term nausea. It has been defined as unwanted sound, a potential hazard to health and communication dumped into the environment with regard to the adverse effect it may have on unwilling ears. (Odetayo (2012).

Pollution can come in differently forms such as water, land, air and noise pollution. Noise can be heard as unwanted sound. Sound, which pleases the listeners, is music and that which causes pain and annoyance is noise. At times, what is music for some can be noise for other Section 2 (a) of the Air (Prevention and Control of Pollution) Act, 1981 includes noise in the definition of ‘air pollutant’. Section 2(a) air pollution means any solid, liquid or gaseous substance including noise present in the atmosphere such concentration as may be or tent to injurious to human beings, other living creatures, plants, property and environment. According to Encyclopaedia Britannica: In acoustic noise is defined as any unwanted sound. In chambers 21st Century Dictionary the definition of noise has undergone a change. Noise pollution stands carved out as phrase separately from noise. The two are defined as under: Noise- a sound; a harsh disagreeable sound, or such sound; a din. Pollution: is an excessive or annoying degree of noise in a particular area, e.g. from traffic or aero plane engines.

Section 2 (c) of the Environment (Protection) Act, 1986 defines environmental pollution to mean the presence in the environment of any environmental pollutant. Section 2 (b) of the said Act defines environmental pollutant to means any solid, liquid or gaseous substance present in such concentration as may be ,or tends to be injurious to environment. Noise can be described as sound without agreeable musical quality or as an unwanted sound. Thus noise can be taken as a group of laud, non harmonious sounds or vibrations that are unpleasant and irritating to ear.

High noise levels can contribute to cardiovascular effects in humans, a rise in blood pressure, and an increase in stress and vasoconstriction, and an increased incidence of coronary artery disease. In animals, noise can increase the risk of death by altering predator or prey detection and avoidance, interfere with reproduction and navigation, and contribute to permanent hearing loss.

Noise pollution affects both health and behaviour. Unwanted sound (noise) can damage psychological health. Noise pollution can cause hypertension, high stress levels, tinnitus, hearing loss, sleep disturbances, and other harmful effects.

Sound becomes unwanted when it either interferes with normal activities such as sleeping, conversation, or disrupts or diminishes one’s quality of life. Chronic exposure to noise may cause noise-induced hearing loss. Elderly ones exposed to significant occupational noise demonstrate more significantly reduced hearing sensitivity than their non-exposed peers, though differences in hearing sensitivity decrease with time and the two groups are indistinguishable by age 79. A comparison of Maaban tribesmen, who were insignificantly exposed to transportation or industrial noise, to a typical U.S. population showed that chronic exposure to moderately high levels of environmental noise contributes to hearing loss.

High pollution levels can contribute to cardiovascular effects and exposure to moderately high levels during a single eight-hour period causes a statistical rise in blood pressure of five to ten points and an increase in stress, and vasoconstriction leading to the increased blood pressure noted above, as well as to increased incidence of coronary artery disease. Means 2005 study by Spanish researchers found out that in urban areas households are willing to pay approximately four Eurosper decibel per year for noise reduction. Noise can have a detrimental effect on wild animals, increasing the risk of death by changing the delicate balance in predator or prey detection, avoidance and interfering the use of the sounds in communication, especially in relation to reproduction and in navigation. Acoustic overexposure can lead to temporary or permanent loss of hearing. Therefore this project will appraise noise pollution and its effect on residential properties.

1.2 STATEMENT OF PROBLEM

Irrespective of the numerous environmental laws enacted to protect the environment, environmental degradation has continued unabated. Oils pillage and gas flaring activities are still commonplace in Nigeria, especially in the oil-rich Niger Delta. Gas flaring has also continued unabated irrespective of the Nigerian government’s directive to end flaring by 2010 (Kalu, 2009). Thousands of barrels of oil have been split into the environment through our oil pipelines and tanks in the country. Enforcement of environmental regulations is still poor as industries continue to discharge untreated waste water into the environment. Heaps of refuse are always a constant sight to behold in Nigerian streets and markets.

A study carried out by Odetayo and Makinde (2012) et al. conducted in Osogbo, Nigeria found out that the noise pollution level in the city was about 3 decibel (A) to 10 decibel(A) (decibel means intensity of a sound) above the recommended upper limit of 82 decibel(A). Akande et al, also found out that the peak noise level at road junction in Abraka, Nigeria to be 100 decibel (A). This noise level is higher than the recommended level of 60 decibel (A) for commercial and residential areas. Akandeet al (2013) .investigated the level of noise pollution in selected industrial locations in Osogbo Osun State, Nigeria. The average ambient noise level in Sawmills, Electro-acoustic market and food processing industrial areas was determined to be above 90 decibel (A). This noise level is well above the healthy noise level of 60 decibel (A). Therefore this study intends to carryout an assessment of the effects of pollution on residential properties in Mararaba, Nasarawa State.

1.3 AIM AND OBJECTIVES

The aim of this study is to assess the effects of pollution on residential properties in Mararaba, Nasarawa State with the view to minimizing the effect noise pollution.

The objectives set to achieve the aim are as follows;

To identify the type of pollution in Mararaba, Nasarawa State.
To determine the effect of pollution on rental value of residential properties in the study area
To recommend measures of reducing environment pollution in the study area.

1.4 RESEARCH QUESTIONS

What are the types of pollution in Mararaba, Nasarawa State?
What is the effect of pollution on rental value of residential properties in the study area?
What are the possible measures of reducing pollution in the study area?

1.5 SIGNIFICANCE OF THE STUDY

Apart from the damaged to the human health, pollution also has adverse effect on residential properties. Therefore this project elaborately highlight how to reduce the danger of the properties to bridges and monuments, to reduce pollution which struck the walls and put the building in danger condition and It reduce the weakens of noise and the edifice of buildings

1.7 DEFINITION OF TERMS

Pollution is the introduction of contaminants into the natural environment that cause adverse change.^[1] Pollution can take the form of chemical substances or energy, such as noise, heat or light. Pollutants, the components of pollution, can be either foreign substances/energies or naturally occurring contaminants. Pollution is often classed as point source or nonpoint source pollution.
PROPERTY: property is defined as the exclusive right a man has or possess in land, being that right which one has to lands or tenants, goods or chattels which does not depend on another’s courtesy. Also, it has three connotations: right of ownership, the object of ownership, and valuable things. Appraisal perceives property as importing unto itself all these ingredients, both in law and common usage, namely, tangible, intangible, and rights; ownership; monetary value; and legal assertion.
RESIDENTIAL: A residential area is a land use in which housing predominates, as opposed to industrial and commercial areas. Housing may vary significantly between, and through, residential areas. These include single-family housing, multi-family residential, or mobile homes. Zoning for residential use may permit some services or work opportunities or may totally exclude business and industry. It may permit high density land use or only permit low density uses. Residential zoning usually includes a smaller floor area ratio than business, commercial or industrial/manufacturing zoning. The area may be large or small.

Friday, 31 December 2021

THE IMPACT OF INFLATION ON PROPERTY VALUE IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Inflation is commonly taken to be an appreciation on real value whereas it is an increase in the volume of money and credit leading to a rise in the general level of prices and consequent erosion of purchasing power. Inflation is characterized by a fall in the value of the country’s currency and a rise in her exchange rate with other nation’s currencies. This is quite obvious in the case of the value of the Naira (N), which was N1 to $1 (one US Dollar) in 1981, N100 to $1 in year 2000 and over N128 to $1 in 2003. In 2014 it was N161 to $1, in 2016 it was N 298 and presently it is over N450 to $1. During inflation prices rises and prices of some goods and services rise faster than others while some may remain unchanged at the same time wages and salaries are more or less fixed but the prices of commodities continue to rise. This is evident in the prices of goods and services which has made it almost difficult to an average Nigerian to meet up the basic requirement of a decent livelihood.

The impact of inflation on the value of assets is considered one of the primary financial concerns of long term investors. While actual and expected inflation have slowed considerably since the early 1980’s, concern over future increases is still a consideration for long term investors. Ibbotson and Siegael (1995) conclude that real estate compensates the investor for inflation risk. When real estate is added to a mixed-asset portfolio, the inflation risk of the expanded portfolio is substantially below that the original portfolio (expanded real estate). In recent years, during which we have inflation seen the incidence of inflation falling to low levels and fairly static property markets, the conventional wisdom has means low, or no growth in property values. There are many benefits from investing in property in a low inflation environment and particular risks in investing in a high inflation environment.

The key to understand the impact inflation on property values is found in two factors in particular. Firstly, the benefit from real estate is maintaining a hedge against inflation and over and above that, increasing the purchasing power of capital by having it increase in value ahead of the rate of inflation, any change in value for a given period above or below the rate of inflation is called the “real” growth rate. Parkin, J. Micjeal (1975) Historically Kwara houses prices have increased over the long term at around 10% per annum compound. Inflation during the same period has averaged around 7% per annum growth, that is, the growth above the inflation rate which is increasing the purchasing power of our capital and therefore our “real “ wealth, has averaged around 3% per annum. If in every year inflation was 12% and prices increased by 15% giving us a 3% real increase, this will be telling us that the property market is booming. Chris and Ola (2001) Why then, when inflation is saying 2% and values increases 5%, again giving us a 3% real increases do they adopt a negative view? The result is virtually the same.

The second key to understand the impact of inflation on property values is on the aspect of home owners’ wealth in housing is currently the largest part of Nigeria households’ investment portfolios. After stock prices collapsed in 2009 and mortgage rates hit historically low levels, investment in residential housing picked up. This increase, coupled with higher home prices, boosted household wealth in real estate from $6.6 trillion in 2000 to $10.5 trillion in the second quarter of 2005 and an increase of more than 58 percent. Over the same period, household wealth in corporate equities lost a fourth of its value, falling from $8 trillion to $6 trillion.

Housing price bubbles occur when home prices grow at a rate exceeding the inflation rate in an area, especially the inflation rate for construction materials and labor. In such situations, higher home prices generally reflect increased demand (Chris and Ola, 2001). For world economic markets, Inflation is a fairly new experience as for much of the pre-twentieth century there had been little upward pressure on prices. These limit governments’ abilities. Inflation reflects a situation where the demand for goods and services exceeds their supply in the economy (Hall, 1982). It causes could be triggered by the private sector and the government spending more than their revenues, or by shortfalls in output. Price increases could also be triggered by increases in costs of production. For instance increases in prices of imported raw materials will cause inflation if not managed. Whatever the initial cause, inflation will not persist unless accomplished by sustained increase in money supply. In this case, inflation is monetary phenomenon. But what effect does inflation have on property values. Inflation causes many distortions in the real estate market. It hurts people who are retired and living on a fixed income. When prices rise these consumers cannot buy as much as they could previously. It is on this note that this study seek to examine the impact of inflation on property value in Nigeria.

1.2 Statement Of Problem

Inflation is one of the challenges facing property values any urban areas in the World. The first is through increased costs: higher wages for construction labor, higher construction material costs and higher land prices. When the prices of new houses and old houses are compared, new houses are more expensive on average than old houses, and the price difference to a great extent reflects higher construction labor and material costs. Inflation as affected property values in terms of rent. Irving Fisher (2010), a noted American economist, put forth a theory about the relationship between interest rates and inflation rates that can be applied to housing market rents.

According to Fisher (2010), when lenders loan money, they consider the expected inflation over the term of the loan and add that expected inflation rate to the interest rate they charge. If lenders want to charge 2 percent interest and expect a 3 percent rate of inflation, they charge 5 percent interest on the loan. A similar process takes place in housing markets. When landlords rent housing units, they consider recent inflation rates as well as expected inflation rates over the terms of rental contracts. They increase rents to meet their inflation expectations. Higher rents translate into higher home prices because the price of a home is equal to the present value of future streams of actual or imputed rents (gross rents minus maintenance costs, taxes, depreciation and so forth).

1.3 Aim And Objectives of the Study

The aim of this study is to examine the impact of inflation on property values in Nigeria. To this end, the study shall focus on the following specific objectives;

To identify the different types of properties in the study area
To identify the types and causes of inflation
To examine the impact of the inflation on property values.

1.3 Research Questions

In other to have a deep insight about the impact of inflation on the property values in the study area. The following issues must be properly addressed;

What type of properties are in the study area?
What are the types and causes of inflation?
How does inflation affect property values?

1.4 Significance Of The Study

This research work is significance to the government for decision making, student, practicing estate surveyors and valuers, investors, researcher etc as the findings of the study will enable them make informed decision of the impact of inflation on property value in Nigeria.

In addition, the study will enable property developer know how to go about their investment in real estate despite the challenges of inflation and rising cost of building materials and construction in general

Lastly, this research work will help to determine the effect of inflation and other factor influencing property value in Nigeria which is an essential pre-requisite to successful property investment as well as stimulating interest in the students to carry out further research on the topic.

1.5 Scope Of The Study

The study addresses the impact of inflation on property value in Nigeria. The scope of this research is restricted to Nasarawa town in Nasarawa State, this is to enable the research have an indepth evaluation.

Some obstacles encountered in the course of carrying out this research were as follow:

Time factor was the major constrain couple with multiplicity of other classroom work and lecture requirement were a set back to the research.
Un-cooperating attitude of some respondents as they were busy to attend to the researcher.
In accessibility of adequate information from research respondent due to illiteracy among them, some find it difficult to understand some question they were asked.
Finance was also a limiting factor in the course of the research.

1.6 Definition of Terms

Inflation: Inflation is the decline of purchasing power of a given currency over time. The rise in the general level of prices, often expressed as a percentage, means that a unit of currency effectively buys less than it did in prior periods.

Property: According toCollins dictionary a property is a building and the land belonging to it.

Property Development: (The Collins English Dictionary, 2014) This can be define as an improvements in land.

Value: This a monetary worth of an asset, business entity, goods sold, service rendered, or liability.

Rental Value: Oxford Advance Learner’s Dictionary (6th edition) define is the fair market value of a property.

Property Value: Property value refers to the worth of a piece of real estate based on the price that a buyer and seller agree upon. According to economic theory, the value of a property converges at the point where the forces of supply meet the forces of demand.

1.7 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 Muhammed administration.

The local government are covers an estimated area of 154 square kilometers.

It has thirteen (13) wards and consists of six departments which is responsible for carrying out the activities of personnel, social, primary health care, agriculture and natural resource. The state derives it name from the local government of Nasarawa. The local government head quarter is between latitude 8.8 degrees east of Karu. They also share boundary with Toto local government area, Federal Capital Territory and Benue.

The local government has a population of 60,210 by the 2006 census through other contest in the law court. It has multiethnic like Afo, Agatu, Gwan-dara etc.

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.

CLIMATE

Nasarawa has two seasons, which includes:

A dry season without or with little rain from November to March.
1. Wet season from April to October

The main annual rainfall is 1-300km

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.

EFFECT OF POPULATION GROWTH ON THE DEVELOPMENT OF RESIDENTIAL PROPERTY IN WUSE ABUJA

CHAPTER ONE

1.0 Introduction

1.1 Background of the study

The impact of rapid population growth on housing development in a developing economy is usually a consequence of the push of the rural areas and the pull of the town. There is always an upsurge and conglomeration of people in city centres with the resultant effects on housing growth arising from acute unemployment. This growth and physical expansion of cities have been accompanied by unplanned urban sprawl, environmental pollution, deterioration, deficiencies in modern basic facilities, and general urban decay (Akpakpan, 2017).

As increased poverty and urbanization exert more pressures on urban facilities, most Nigerian cities tend to have lost their original dignity, social cohesion and administrative efficiency. The relationship between population and housing is two-sided. On the one hand, population change leads to a changing demand for housing. Population growth, and particularly a growth in the number of households, leads to a growth in housing demand. Population decline might lead to a decrease in housing demand. This will, however, only happen in the long run, after not only the number of people but also the number of households has started to decline (Eric, 2015).

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 Nigeria economic output. The property development process involves the continual combination of significant factors of production (land, labour, capital and enterprise). In addition, property development has been characterised 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 to meet the needs of the ever growing of population of Nigeria (Cadman, 2014).

The impact of rapid population growth on property development and conditions is far more than merely a demographic or quantitative one. Whereas the population growth and urbanization process in the 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. The implication is this deplorable and alarming situation which aggravates the already acute housing problem. It is against this background that this study seek to examine the effect of population growth on the development of residential properties in Wuse Abuja.

1.2 Statement of research 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. There are now over 400 cities with a population of over a million people (UN-Habitat, 2015). As population growth is an underlying factor for the demand of housing, 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 and fewer people per household means the supply of more housing is needed. The growth of the population in Abuja Municipal Area Council 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 with. The extent of the housing shortage in Abuja is enormous. 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 Abuja. 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. One major effect of this is the cost of infrastructure required, as either new infrastructure has to be put in place or upgrading and extending the existing infrastructure. It is on this note that this study seek to examine the effect of population growth on the development of residential property in Wuse Abuja.

1.3 Aim and objectives of the study

Aim:

The aim of this project is to examine the effect of population growth on the development of residential property in Wuse Abuja.

Objectives:

The specific objectives of this study include:

To determine the cause of population growth in Wuse Abuja and Nigeria at large.
To evaluate the state of residential properties in Wuse Abuja
To determine the effect of population growth on the development of residential property in the study area
To identify other factors affecting residential property development Wuse Abuja
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 population growth in Wuse Abuja and Nigeria at large?
What is the state of residential properties development in Wuse Abuja?
What are the effects of population growth on the development of residential property in the study area?
What are the other factors affecting residential property development in Wuse Abuja
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 population growth and its effect of residential properties development 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 population trends in Nigeria and its consequences to development of residential properties in Nigeria and also for further studies.
Research: This study will provide more information for further research about the population growth and residential property development in Nigeria.
Investors in Real Estate: Real estate investors will benefit from the findings of this study as it enlighten on the effects of population growth on development of residential properties, 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 population growth on the development of residential property in Wuse Abuja. Other properties such as commercial properties, industrial or educational properties will not be included in this research. Geographically, the study is limited to Wuse in Abuja the Federal Capital Territory.

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

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

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)

1.8 The study area

Wuse is one of the district in Federal Capital Territory Abuja. Wuse District is the north western part of the city, with the Maitama District to its north and the Central District to its south. The District is numbered Zones 1-8. Wuse Market is Abuja’s most popular market (Zone 5). The second most important Post Office in the city is located here.

This district also houses the Sheraton Hotel and Towers (Zone 4), Ibro International hotel, Rockview Hotel, the Nigerian Customs Services Headquarters, the Foreign Affairs Ministry Headquarters (Zone 1) and Federal Road Safety Commission (FRSC). National Agency for Food and Drugs Administration (NAFDAC) (Zone 7), Wuse General Hospital, and the Nigerian Tourism Development Corporation.

EFFECT OF INFRASTRUCTURE FACILITIES ON RENTAL VALUE OF RESIDENTIAL PROPERTIES IN IBADAN

ABSTRACT

This study examines the impact of infrastructural facilities on residential property value in Ibadan. The study examined among other things, the provision of infrastructural facilities as an impetus for real Estate development and value in the study area. The study employed the use of structured questionnaire; the data collected were analyzed through simple percentage tables. The study revealed that the residential property in Ibadan has very limited number of these infrastructure facilities. The result of inadequate provision of these facilities has in most cases being reflected in the amount of rent paid for the properties in Ibadan. It is therefore recommended that infrastructures should be provided by both the private and public sectors to better the lot of the residents and to also ensure continuous flow of investors’ income (rent).

CHAPTER ONE

1.0 INTRODUCTIONS

One of the remarkable developments associated with the process of socio- economic change in Nigeria during the last seventeen years has been the damour for increase and improvement of infrastructural facilities. Infrastructural facilities involve the provision of services which the various levels of government in the country as well as various communities are collectively involved. This also includes services provided by voluntary agencies and private individuals for the benefits of the community at large. In the light of the harsh condition Nigeria has been going through recently, sky rocketing cost of building and construction, high cost of finance and unpredictable economic conditions there has been decrease in infrastructure development and little or no maintenance of the existing stock. There has therefore, arisen a need for finding alternative means of infrastructure development as it relates up grading and managing the present. Stock, thus, preserving our built emolument. In line with the basic need of shelter and its preservation, the need to have basic infrastructure in place for the development. Individual who commits capital into real estate as an investment intends to reap optimum returns from such investments. In order to achieve this aim, the investment must be strategically positioned where it has access to basic infrastructure so as to keep this property in a state to command a constant flow of income or benefits and an appreciation in capital value. The majority of investors in residential properties development in Nigeria are individual and a handful of corporate concerns, considering the problem of increasing cost the dilapidated ones still in use, infrastructure is almost static which over stretching of the existing ones continues. The federal government and it agencies like the development control have been doing all they can to improve the present infrastructural facilities stock. But the fact remains that the government does not have enough fund to improve on the entire stock. The study is critically examining the presence state of infrastructural facilities and will also recommended ways to improve these facilities. This is an attempt to increase values to tenants, optimize returns to property owners and presence our build environment. The findings could therefore be applicable to other residential areas presenting problem in Nigeria.

1.1 STATEMENT OF THE PROBLEM

Infrastructure facilities have over the years contributed immensely to the general well being of developed nations. Developing nations have also being able to exploit these facilities though not at a highly appreciative level Nigeria has over the years being grappling with the problem of inadequate infrastructural facilities. Corruption has being the bare of adequate provision of these facilities. Residential properties in Ibadan has very limited number of ‘wit1i these infrastructure facilities. The result of inadequate provision of these facilities has in most cases being reflected in the amount of rent paid for properties in Ibadan Residential properties areas that have of these facilities ar experiencing poor maintenance which affect their longevity the problem is Property owner in Ibadan are often unaware of how infrastructural facilities could to a large extent influence rent paid for there properties. This is evident in the fact that only few of them make effort to either proved these facilities or make effort to ensure that these facilities are provided.

1.2. AIM AND OBJECTIVES OF THE STUDY

The aim of this study is to evaluate the impact of infrastructural facilities on rental values of residential property taking Ibadan as a case study. To achieve this aim the under listed objectives will be pursued.

To identify the infrastructural facilities in the study area.
To analyze the relationship between infrastructural facilities and property value.
To determine the nature and pattern of trends in rental values of residential property in the study area.

1.3. SIGNIFICANCE OF THE STUDY

The research will help people to know about the impact of infrastructural Facilities on rental values of residential property development. The impact of infrastructural facilities plays in the property market and how to achieve feasible rental values or yields in residential properties In the future cannot be over emphasized in this work as it is used by Students and researchers.

1.5 Significance of the Study

This project is an attempt to assess the effect of infrastructural facilities on residential property value in Ibadan, the study discuss the types of residential property in the study area, identifies the types and condition of available infrastructural facilities available and tries to establish the relationship between infrastructural facilities and residential property rental value. The result of research will help developers, investors, real estate managers and valuers and the government to know the relevance of infrastructural facilities to residential properties and its effect on rental value thus given them a better chance to an informed decision.

The study will 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.

This study will also serve as a reference material for subsequent research related to the effect of infrastructural facilities on residential property value where researchers, students and scholars will tap into the wealth of knowledge provided in this study.

1.6 Scope and Limitations of the Study

The research work is confined to the study of the assessment of the effect of infrastructural facilities on residential rental value in Ibadan. 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.

There are several limitation encountered during the conduct of this research. These limitations include: non availability of adequate data which played a major limitation to this write up because of non-cooperative attitude of some respondents who were not willing to give information and data needed to aid findings, time was another major factor which affect the study as the researcher do not have enough time to make detailed investigation on all the aspects of the study. And the general unwillingness of some respondents to fill the questionnaire provided for the research made it difficult to gather data needed for this research study at the most appropriate time.

1.7 Operational Definitions 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 to 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 BACKGROUND OF THE STUDY

Ibadan is the capital and most populous city of Oyo State, in Nigeria. It is the third-largest city by population in Nigeria after Lagos and Kano, with a total population of 3,649,000 as of 2021, and over 6 million people within its metropolitan area. It is the country’s largest city by geographical area. At the time of Nigeria’s independence in 1960, Ibadan was the largest and most populous city in the country, and the second most populous in Africa behind Cairo.

Ibadan is located in south-western Nigeria, 128 kilometres (80 mi) inland northeast of Lagos and 530 kilometres (330 mi) southwest of Abuja, the federal capital. It is a prominent transit point between the coastal region and areas in the hinterland of the country. Ibadan had been the administrative centre of the old Western Region since the early days of British colonial rule, and parts of the city’s ancient protective walls still stand to this day. The principal inhabitants of the city are the Yoruba people, as well as various communities (notably Igbo, Hausa, and Efik) from other parts of the country.

Ibadan, coined from the phrase “Eba Odan”, which literally means ‘by the edge of the meadow’, came into existence in 1829, during a period of turmoil that characterized Yorubaland at the time. It was in this period that many old Yoruba cities such as old Oyo (Oyo ile), Ijaye and Owu disappeared, and newer ones such as Abeokuta, new Oyo (Oyo atiba) and Ibadan sprang up to replace them.

According to local historians, Lagelu founded the city, and was initially intended to be a war camp for warriors coming from Oyo, Ife and Ijebu.^[7] As a forest site containing several ranges of hills, varying in elevation from 160 to 275 metres, the location of the camp offered strategic defence opportunities. Moreover, its location at the fringe of the forest (from which the city got its name) promoted its emergence as a marketing centre for traders and goods from both the forest and grassland areas.

In Ibadan, unlike other Yoruba cities with traditional kingship institutions, the warrior class became the rulers of the city as well as the most important economic group. Ibadan has a tropical wet and dry climate (Köppen climate classification), with a lengthy wet season and relatively constant temperatures throughout the year. Ibadan’s wet season runs from March through October, though August sees somewhat of a lull in precipitation. This lull divides the wet season into two different wet seasons. November to February forms the city’s dry season, during which Ibadan experiences the typical West African harmattan. The mean total rainfall for Ibadan is approximately 1,230 millimetres or 48 inches, falling over about 123 days. There are two peaks for rainfall, June and September. The mean daily temperature is 26.46 °C or 79.63 °F, the mean minimum 21.42 °C or 70.56 °F, and the relative humidity 74.55%.

Pages

Saturday, 4 March 2023

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

Thursday, 19 January 2023

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

Saturday, 31 December 2022

AN EVALUATION OF THE IMPACT OF DEVELOPMENT CONTROL ON RESIDENTIAL PROPERTY IN PORT HARCOURT METROPOLIS

Wednesday, 28 December 2022

ANALYSIS OF THE IMPACT OF PLANNING CONTROL ON RESIDENTIAL PROPERTY VALUE IN NASARAWA STATE

Friday, 14 January 2022

AN ASSESSMENT OF THE EFFECTS OF POLLUTION ON RESIDENTIAL PROPERTIES IN MARARABA NASARAWA STATE

Friday, 31 December 2021

THE IMPACT OF INFLATION ON PROPERTY VALUE IN NIGERIA

EFFECT OF POPULATION GROWTH ON THE DEVELOPMENT OF RESIDENTIAL PROPERTY IN WUSE ABUJA

EFFECT OF INFRASTRUCTURE FACILITIES ON RENTAL VALUE OF RESIDENTIAL PROPERTIES IN IBADAN