ENEMS MICROSYSTEMS RESEARCH SPOT: Estate Project

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Sunday, 12 March 2023

VALUATION FOR COMPENSATION IN NIGERIA

VALUATION FOR COMPENSATION IN NIGERIA

(A Case Study of 330KVA PHCN Power Line Project, Otukpo, Benue State)

ABSTRACT

This project work looks into the valuation for compensation in Nigeria, a case study of 330 KVA PHCN Power Line Project, Otukpo Benue state. State Government in Nigeria has the power of compulsory acquisition in their respect domain. The provision of the law is also that adequate compensation should be given to those affected by the acquisition. The question is whether the compensation being paid is adequate or not. This work is looking into the adequate of compensation in the acquisition of land for 330kva PHCN power line project, Otukpo. It will identify problems encountered in the process of acquisition and compensation and proffer solutions.

CHAPTER ONE

1.0 INTRODUCTION

Knowing what an asset is worth and what determines the value is a pre-requisite for intelligent decision in making an investment for a portfolio, in deciding on the appropriate price to pay (compensation) or receive in a takeover, and choosing financing and dividend choices when running a business. The premise of valuation is that, we can make reasonable estimates of value for most assets and that the same fundamental principles. The value of all types of assets, real as well as corporeal. Some assets are easier to value than others, the details of valuation vary from asset to asset and the uncertainty associated with value estimates is different for different assets, but the core principles remain the same.

This introduction lays out some general insights about the valuation and compensation process and outlines the role that valuation plays in portfolio management, acquisition analysis and in corporate finance. It also examines the three basic approaches that can be used to value an asset (Kalulu and Byrne, 2009). There is no land without owner; the ownership may be individual, corporate, communal or national. Everything depends on land, houses are built on land, food comes from land, and the ultimate relationship between man and land is that man’s remains are committed to land after death. Hence, life basic needs are expressed to be food; clothing and shelter are entirely derived from land. Statutory definitions of land in Nigeria include the followings:

Land includes ‘’land and everything attached to the earth and all chattels real’’, further, land includes land of any tenure, building or any parts of building whether the division is horizontal, vertical or made in any other way. Furthermore, the word land is a species of property (Obaseki, 1989). Property has been defined to mean ownership or title of a valuable asset and sometimes the right over which ownership may be exercised. The land comprised in the territory of each state of the federation is the right over which the governor exercised ownership in trust in accordance with section (1) of the land use Act of 1978. It is an immovable property. The land use decree was promulgated on 29th march 1978, following the recommendations of a minority report of a panel appointed by the federal military government of the time to advice on future land policy in each state of the federation.

The decree distinguishes throughout between urban and rural land. In urban areas valuation for compensation is higher compared to rural areas. While in rural, the land use decree fall under the appropriate local government. Land use and allocation committees appointed for each state by the governor were to be advised on the administration of land in urban areas while, land allocation advisory committees were to exercise equivalent functions with regards to rural land.

This project focuses on the provision of the Act, section 28 and section 29 relating to valuation for compensation and acquisition.

1.1 AIM AND OBJECTIVES OF THE STUDY

The aim of this research is to examine the basis of valuation for compensation in Nigeria with reference to 330KVA, PHCN power line project, Otukpo Benue state. However, the following objectives are critical to achieve the aim of this project;

(i) To know the approaches in place and effectively implemented to ensure that communities and people are placed in at equivalent position to compensate those, before the land acquisition.

(ii) To examine the stand of the Act as regards valuation for compensation, and arriving at adequate compensation.

(iii) To make case for adequate compensation.

1.2 STATEMENT OF THE RESEARCH PROBLEM

The problems of valuation for compensation in Nigeria remain unaltered or unchanged if not even compounded by the day because of inadequate measures being taken by the respective organization or authorities to solve these problems. Lack of standard structure by the government to manage compensation in areas acquired for federal projects is alarming inadequacy of competent valuers, surveyors, managers etc. And also lack of genuine and original values of building, farm, land, and reserved areas both private and public buildings.

1.3 BACKGROUND OF THE STUDY

Valuation for compensation in Nigeria is very much prone to challenges as a result of lack of funds. With this, the attitude of average Nigerian valuers towards property valuation is not encouraging.

In an area of depressed economy like Nigeria, coupled with the dramatic decrease in private and public property, valuation is continuously neglected (Olateju, 1990).

The essence of this project writing on valuation for compensation in Nigeria to make detailed survey and plan for the subject property aimed at bettering the condition for valuation of the same. Also to observe, identify the problems and give advice for the proper execution of valuation for compensation anywhere strictly on professional terms. Landed properties generally has been considered as a major issue by both the public and private sectors because of the central position it occupies in the socio-economic development of projects e.g.330KVA, PHCN power line project in the area of case study.

Landed property is generally regarded as a basic human need as it ranks next to food and clothing. Housing, farm land and other land properties are not only a structure but also part of fabric of neighborhood life (Encarta, 2007). For a long time, there has been a miss-conception that the provision of compensation is a social science by either government or private organization. Notwithstanding, good valuation for compensation promotes efficiency of project in the area acquired for project development, contribute to improvements in national productivity improved valuation for compensation for the citizens of any nation contributes greatly to social stability in the society, so also do compensation provide property owners an enhanced comfort and social values in human settlement (Lee, 1976).

1.4 SIGNIFICANCE OF THE STUDY

The relevance of the study is purely on academics and designed to achieve the partial fulfillment of the award of National Diploma in Estate Management, Federal Polytechnic Nasarawa. It will also be importance to the school who may find the report as an important tool in carrying out routine valuation for compensation in the surrounding of expansion is required by the school. It will help to know how to carry out valuation reports and compensation reports in the field of estate surveying and valuation profession.

Finally, the federal polytechnic Nasarawa will find it useful as an additional literature in related books in its libraries and also a further guide for future students in research related subjects.

1.5 SCOPE AND LIMITATION OF THE STUDY

The scope of this research is the adequacy of compensation on the acquisition of properties for the 330KVA, PHCN power line. It is clear that the study will not discuss all but rather be restricted to the valuation for compensation in other to reveal the level, adequacy, justness and equity.

The scope is limited to the power line valuation for compensation 330KVA, PHCN power line project, Otukpo Benue state.

Wednesday, 28 December 2022

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

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.

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 (Uthman, 2019).

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.

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 value.

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.

THE IMPACT OF THE PROLIFERATION OF FRONTAGE SHOPS ON PROPERTY DEVELOPMENT IN TAMMAH NASARAWA

THE IMPACT OF THE PROLIFERATION OF FRONTAGE SHOPS ON PROPERTY DEVELOPMENT IN TAMMAH NASARAWA

CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

Properties either commercial or residential property in form of housing is an essential and fundamental component of the overall land use activities in both rural and urban areas. It has been universally acknowledged as one of the basic needs for man’s survival as it goes a long way to determine not only the social standard of a man but also that of a nation and a community (Ezirim, 2005).

Generally, the supply and the demand for properties take place in a housing market. According to Bourne (1981), the housing market is a set of institutions and procedures for bringing together housing supply and demand, that is, buyers and sellers, renters and landlords, builders and consumers, for the purpose of exchanging houses and housing services as resources. It examined in detail the present and future trends in the supply of and demand for housing within a given area. Basically, housing market analysis identifies supply and demand factors and needs and establishes procedures and processes for meeting the needs. Unlike other types of market, the housing market had a number of distinctive characteristics. It deals with the exchange of rights and property and is, for all intents and purposes, immobile. The housing market had no specific market place where exchanges between buyers and sellers were done.

The process of urbanization had taken a new turn over the last few decades and population explosion had placed urban areas in a situation where the available facilities including housing and commercial properties in form of shops were below margin in terms of meeting its equivalent demand. Considering the environmental nature of frontage shops which depicts deteriorating housing facilities, environmental degradation, poor sanitary environment, bad roads and access, overcrowding, high crime rate, delinquents, etc. had tremendous negative influence on the health, safety and economic and social welfare of residents of any urban centre or community.

In recent times studies have shown that inadequate commercial properties such as shops and offices in urban areas of developing countries have lead to the development of frontage shops (Rojas, 2000). Ooi and Phua (2007) have observed that most cities in developing world have been overwhelmed with the development of frontage and corner shops in an attempt to meet the gap for commercial properties development, thereby constituting hindrance to property development.

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

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

Property or real estate development is the process of developing buildings or land into a higher use value. It is a multi-faceted business which encompasses any of the following; buying land and building property on it, renovating, extending or improving property and or converting property from one use type to another. The proliferation of frontage shops has significantly affected the quality of urban environment as it negates the effectiveness of property development and development control in Nigeria urban centers ( ). 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.

1.2 Statement of the Problem

Like every other developing country, the problems associated with frontage shops, corner shops and property development in general had been a predominant issue in urban centres. These problems were seen around both residential settlements and other uses. In Nasarawa town, Tammah in particularly, every most residential property or shops along major streets and roads are characterized with frontage shop which pose serious problems to the environment and property development in particular. These problems observed include obstruction to drainage system as most frontage shops are built across drainage systems, littering of wastes, distortion to the atheistic beauty of the town, overcrowding, conversion of residential building to commercial without due consideration to development standard among others. Frontage shops are mostly constructed without the approval of development control authority as owners of such properties did not have the right of either develop or occupying such properties. Frontage shops or structures were mostly erected arbitrary and construction is carried out with weak and short-lived materials which were vulnerable to potential environmental consequences. Buildings were not well planned or designed, no pre-concerned layouts and complete absence of development control. For this study, the problems mentioned above would be the focus of this study as it would examine the impact of the proliferation of frontage shops on property development in Tammah Nasarawa.

1.3 Aim and Objectives of the Study

The aim of this study is to examine the proliferation of frontage shops on property development in Tammah Nasarawa.

The specific objectives of the study include:

Examine the types of frontage shops
To examine the rules and regulation on development control in Nasarawa town
To examine the development control authority
To examine how the establishment or sitting of frontage shops abide to rules and regulations of development control
To examine the challenges of the enforcement of development control in Nasarawa town.

1.4 Research Questions

What are the types of frontage shops?
What are the rules and regulation on development control in Nasarawa town?
What the concept of development control authority
Does the establishment or sitting of frontage shops abide by the rules and regulations of development control?
What are the challenges of the enforcement of development control in Nasarawa town?

1.5 Significance of the study

The role of property development and development control in management of urban areas cannot be underestimated. The crucial relevance of property development makes studies about it important to national development. This study examined the impact of the proliferation of frontage shops on property development in Tammah Nasarawa.

The study is particularly important as contributes to existing works on
property development and the numerous factors that affects it, particularly the uncontrolled numbers of frontage or corner shops in Nigeria urban centers. This will contribute to knowledge by discovering new challenges stakeholders faces in controlling and housing development in urban centers in growing cities and also serves as a reference material for future research.

The findings of this study will help contribute to good management practice in the public
institutions charged with the responsibility of controlling property developments in the
country. This is because the study attempts to explore the problems associated with
proliferation of frontage shops and how it affects property development and recommends actions to be taken for its effectiveness.

Furthermore, the findings will create awareness of stakeholders on the current state of
proliferation of frontage shops and their effect on the urban environment and people. This will ensure adequate measures are put in place to prevent further developments of the
situations where buildings in urban areas uncontrolled. The implementation of findings of
this research will also lead to improvement in urban housing development and
management as well as related issues in Nigeria as a whole.

The study will extend literature and broaden the frontiers of knowledge in property development and development control and serve as input into related works in future. The findings could contribute to tackling issues for consideration in the study district as well as national policies on ensuring effective developments in the urban areas and beyond.

1.6 Scope and Limitations of the Study

This project mainly concern on the examination of the impact of proliferation of frontage shops on property development in Tammah Nasarawa. The study will only be limited to properties with frontage shops which are not originally part of the building plan, which includes Kiosk, makeshift shops, etc.

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

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).
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.

THE IMPACT OF THE PROLIFERATION OF FRONTAGE SHOPS ON PROPERTY DEVELOPMENT IN TAMMAH NASARAWA

CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

1.2 Statement of the Problem

1.3 Aim and Objectives of the Study

The aim of this study is to examine the proliferation of frontage shops on property development in Tammah Nasarawa.

The specific objectives of the study include:

Examine the types of frontage shops
To examine the rules and regulation on development control in Nasarawa town
To examine the development control authority
To examine how the establishment or sitting of frontage shops abide to rules and regulations of development control
To examine the challenges of the enforcement of development control in Nasarawa town.

1.4 Research Questions

What are the types of frontage shops?
What are the rules and regulation on development control in Nasarawa town?
What the concept of development control authority
Does the establishment or sitting of frontage shops abide by the rules and regulations of development control?
What are the challenges of the enforcement of development control in Nasarawa town?

1.5 Significance of the study

1.6 Scope and Limitations of the Study

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

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.

1.8 DEFINITION & OPERATIONAL OF TERMS

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).
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.

Monday, 13 August 2018

Real Estate Marketing

The real estate brokerage business is a strong traditional service agency that conveys market information for facilitating trading of the product (namely, real estate developments) within a highly inefficient market and mechanism (Li and Wang, 2006). Various scholars have examined the subject of real estate marketing (agency) from different perspectives. Pheng and Hoe (1994) examined the important attributes for real estate marketing. The study which was questionnaire-based identified twenty two (22) attributes. It was found in the study that ability to provide good service, good track record, dedication and total commitment, ability to achieve defined results and professionalism in dealings are the top most driving attributes of the agency firms for real estate consultancy. Qualified and experience team, big client base, ability to achieve desired results, dedication and total commitment are rated high as the attributes that influence the developers’ choice of appointing an agent. The study further concluded that consistent with the marketing mix concept for the marketing of services, the developer rates ‘people factor’ as a very important attribute which real estate agency firms should possess. The “people factor” includes the marketing team’s dedication and total commitment, their ability to achieve desired results, their experience and qualifications as well as their professionalism in handling deals.

Jud and Roulac (2001) in their study revealed the features of unethical practices in agency in the forms of multiple listing, disrespect of agency regulation, rise of fee for service pricing. The study revealed that the elements of no-service quality may be because of little or no entry barrier. The proliferation of various marketing strategy can also be attributed to the advent of the internet as posited by Nissen (1995), and Li and Wang (2006), that the roles of a service agent on the internet is classified as that of a watcher agent, learning agent, shopping agent, information retrieval agent and helper agent. However, the aspect of online real estate marketing is a ripe area to explore in Nigeria to identity the challenges confronting the practicing ESVs. Xu et al (2010) put forward a novel approach to describe the changing situations of the Chinese real estate market by means of Chinese Real Estate Confidence Index called CRE index, which is synthetically calculated based on its three sub-indices to reflect the three different aspects. The study served as a generic indicator to reflect changes in the Chinese real estate market, the CRE index provides all stakeholders with a quantitative method to verify history and detect tendency with regard to the progressive development of the market which is influenced by dynamic social and national conditions.

Iroham et al (2011) posit that in real estate agency practice, where the market is fraught with dearth of information, the role of the estate agent cannot be overemphasized particularly in bringing together parties of divergent interest in attaining specific goals. The authors surveyed 159 estate surveying firms and 91 property development companies in the commercial nerve centre of Lagos and indicated that multiple agency is mostly adopted in Nigeria real estate practice. The study consequently advocated for the modification of agency practice to eradicate all inefficiencies by safeguarding the interest of all parties. Munneke and Yayas, (2001) confirmed that the differences among brokerage firms and/or their agents suggest the possibility that some homes sell at premium prices and over a shorter time horizon than is the case with other broker-assisted transactions handled by less skilled or motivated agents. In the research conducted by Ke et al (2008), the performance of an estate agent is attributed to market environment volatility such as market uncertainty, housing market liquidity and house price changes. The study hence concluded that the size of a firm does not determine business performance and that there is need for enhancing, through training, the skills of estate agents in Nigeria per effective service delivery.

Considering the strategies in real estate marketing, it is important to state that marketing is the skill of matching the needs of a buyer with the product of a seller, for a profit. It is true to say that development property used to be a soft-sell product. In the light of this, it is ethical in Nigeria to erect bill board and place an advertisement. Nowadays, however, those marketing property developments are faced increasingly with a highly competitive and discerning market and one that demands better information. The days of certain markets, easy lettings and malleable tenants have gone, and for the foreseeable future they unlikely to retain property as a product has become more difficult to sell and those responsible for selling it require bringing a higher degree of professionalism to the market. (Araloyin and Ojo, 2011). This implies that property service is tasking if an agent is to claim any achievement. In accordance with the codes of conduct of NIESV (2005), the following approaches are allowed in real estate marketing: site or bill boards, direct marketing, press marketing, brochure/bulletin and personal contact ethically.