ENEMS MICROSYSTEMS RESEARCH SPOT: residential property

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Monday 24 April 2023

ANALYSIS OF REAL ESTATE RISK IN RESIDENTIAL PROPERTY INVESTMENT IN ADO EKITI

ANALYSIS OF REAL ESTATE RISK IN RESIDENTIAL PROPERTY INVESTMENT IN ADO EKITI

(A CASE STUDY OF FLORENCE COURT ESTATE)

ABSTRACT

This study analysis the real estate risk in residential property investment in Ado Ekiti with particular reference to Florence Court Estate. To achieve the stated aim above, the researcher identifies the types of residential real estate investment, identify the residential real estate investment risks, analyze the factors responsible for the identified risk and examine the challenges of residential real estate investment in Florence Court Estate. The researcher adopted survey design which offers the opportunity to gather relevant data from the population of interest which comprises of property developer, investors, landlords, tenants and estate agents or property agents in Florence Court Estate. The data gathered were presented and analyzed using the descriptive statistics. The findings of this study based on the data presentation and analysis shows that the real estate risk in residential property investment in Florence Court Estate are majorly as a result of lack of housing provision and financing in both the public and private real estate sector, change in government policies which makes the real estate sector prone to political uncertainty that can adversely affects real estate investments. Research also shows that lack or improper implementation of development control poses a great risk in residential property investments as the appropriate authority did not carry out their responsibility diligently in areas of zoning, approval of plans, provision of Certificate of Occupancy and other development control measures. Finally the study recommend that real estate investors should make preliminary investigation in residential real estate market in Florence Court Estate before venturing into investing their money so as to identify the risk inherent and try as much as possible to reduce it, property owners, investors and developers should ensure that they comply with the provisions of development control authority thereby reducing the risk of demolition, environmental degradation and natural disaster which arise from developing a property in a site which are prone to environmental risk and the government should make concerted effort towards reducing the stress and time of processing C of O so that investors can easily identify who the real owners of land are therefore reducing the risk associated with land acquisition.

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of study

Residential real estate investment, like life itself, comes with its own associated risks and these risks are events that could bring harm or loss to an investment. A risk is that probable event that could lead to depreciation of the value of property or outright loss of investment (Clayton, 2007). The existence of such factors should not discourage an investor from investing but rather use the knowledge of residential real estate risk analysis and management that the researcher is examining to help secure an investment. The primary residential risk in real estate investment in Nigeria is the possibility of falling into the hands of fraudsters. Fraudsters sometimes attempt to sell a property that does not belong to them. This is another source of issues for investors but could be eliminated by engaging the services of professionals to help investigate the title to the property that is being sought for purchase and to ensure that all the documents needed from the seller are prepared, signed and collected (Fisher, 2005).

Another possible residential real estate risk investors may face as a real estate investor in Nigeria is government or political risk. Because of the wide ranging power of the executive arm of government and fluidity of functions, the government could acquire private land but the land so acquired must be for public purposes. Unfortunately, there are several instances where government had acquired private land for “public purposes” and “development control” only to turn around and allocate to other individuals to use for their own private projects. Some have experienced their Certificate of Occupancy revoked by a new government due to the fact that the owner does not belong to the same political party. This kind of policy inconsistency is a major discouragement to investors. They should be that as it may, whenever investors are planning to purchase a land in an area, engage professionals (e.g. Estate Surveyors and valuers) to confirm whether or not the land is under acquisition by government or could not be sold (Black, 1986).

At other times, after government had acquired family lands and compensated the appropriate families, some of the traditional land owners still go ahead to sell portions of those lands to the unsuspecting public. Many people purchase such lands and begin to build without government building approvals. The implication of this, as many have painfully learnt, is that when government decides to take possession and pull down the structures on such lands, such a purchaser will not be compensated by government. It is also important to note that some areas have already been acquired or building developments in such areas already restricted (Syz, 2008). For instance, land under the power cables should not be built upon. Many are flaunting this law but should the government decide to enforce such regulations, several people would be affected.

There are also financial risks involved in residential real estate investment. If an investor decides to use a bank loan to buy a property, there is need for the awareness that what we call mortgages in Nigeria, is technically a residential loan. Ideally, a real estate/home loan should be a single-digit interest loan, but what Nigeria currently have are double – digit residential loans. Although, the government established a National Housing Fund (NHF) single-digit-interest loan that could advance a contributor up to N25m, many have not been able to access the loan due to bureaucratic bottlenecks and red tape. Some who have accessed the loan have had to apply for a bridging loan at residential double-digit interest rates in order not to miss their desirable property.

Despite its inherent risks, residential real estate presents a compelling opportunity for investors. Not only does the sector provide many long-term investment benefits, including healthy income returns and a hedge against inflation, but fundamental factors such as the improvement of the risk/return characteristics of the overall mixed asset portfolio. The case for investing in residential real estate looks particularly attractive when viewed in the context of the current market environment, although it is not without risk. Perhaps the most obvious reasons why residential real estate merits inclusion in a management portfolio are derived from both cyclical and noncyclical factors – specifically, the favorable long term outlook for real estate demand, from both users and investors, property cash flows and real estate’s potential inflation hedging characteristics. The liquidity of residential real estate provides investors the most efficient means to obtain exposure to property markets globally. The ability to trade daily not only provides a useful tool for investors to create tactical allocations to the sector and global regions, but it also provides a means to efficiently re-balance allocations as market conditions change.

1.2 Statement of Problem

It is very important for investors in residential real estate to first ascertain the risk factors of an investment asset before committing investment funds to such investment. Investors’ informed decisions with respect to the risk and develop strategies of real estate investments in order to ensure profitability. Residential real estate investment is usually rental properties intended to generate a return from rental income or capital appreciation. Investments in these real estate assets are associated with multiple risk complexities which includes: investment illiquidity, asset value volatility, asset valuation inaccuracies, leverage-amplifying negative performance during falling markets, limited/ imperfect benchmarks to gauge closed-end fund performance, combination of a large lot size (capital intensive investments) and high transaction costs. However, the researcher will provide an overview of residential real estate risks in Ado Ekiti.

1.3 Aim and Objectives of the Study

The main aim of this study is to analyze the real estate risk in residential property investment in Ado Ekiti – A case study of Florence Court Estate.

To achieve the stated aim above, the following objectives are pursued:

To identify the types of residential real estate investment in the study area
To identify the residential real estate investment risks in Florence Court Estate
To analyze the factors responsible for the identified risk.
To examine the challenges of residential real estate investment in Florence Court Estate

1.4 Research Questions

The researcher deem fit to find answers to the following research questions to enable him achieve the desired aim of this research:

What are the types of residential real estate investments in Florence Court Estate?
What are some of the risk investors may face in residential real estate investment in Florence Court Estate?
What are the challenges of residential real estate investment in Florence Court Estate?
What are the causes of the identified risk in residential real estate investment?

1.5 Significance of the Study

The finding of this study will be of benefit to the following groups; firstly, investors who bear the cost of property development, secondly, the tenants and thirdly, real estate firms who are involved in the management of properties. This will again enable the investors to understand the trends of property investment as it relates to its cost in the face of risk. The research will also be of great importance to students and researchers who are interested in studying the real estate investment risk on residential properties.

The government and the financial sectors regulators (CBN) will find this research useful as it highlights the risk of residential real estate investment /development and provision of sustainable housing for her teaming citizens.

1.6 Scope and Limitations of the Study

The study helps to analyze the risk of residential real estate investment in Florence Court Estate.

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

1.7 Definition Of Operational Terms

Market analysis: The market analysis is activity of gathering information about conditions that affect a market. A market analysis studies the attractiveness and the dynamics of a specific market within a special industry.

Development risk: Development risk is defined as the risk that the leasing or sale of the project will generate insufficient returns to cover cost and create the desired return due to a lack of sales or inadequately meeting the needs of the market in terms of type and location. The more unusual a particular type of project is for the developer, the higher the chance that the developer will misread the market and the higher the development risk. (DICKINSON, 2001)

Building site risk: This is the risk that the selected site is unsuitable, or needs to be modified at cost to become suitable, for the intended use due to environmental issues (such as contamination) or its natural characteristics (stability, water levels, subsidence etc.) (DICKINSON, 2001)

Risk Management: Risk management as a systematic and integrated approach to the management of the total risk that a company faces risk management is the process of identifying, assessing and controlling threats to an organization’s risk. (DICKINSON, 2001)

Market Value: This is the worth of an interest in property in which measurable buyers and sellers would agree to, when referred to market with existence of condition for comparative market application. Market value can also be defined as the higher price in terms of money which a property should bring in comparative or open market under all condition requisite to a fair sale, the buyer and seller each acting prudently, knowledge and assuming the price is not affected by undue stimulus. (Wendth and Paul, 1979)

Value: This is the monetary worth of a thing that is expressed as the value of the goods or services measured by the amount of other goods and services for which it will be exchange. (Wendth and Paul, 1979)

Residential Properties: Residential properties are those properties that are occupied for the purpose of providing shelter to the occupants and serves as a habitation for them. Residential properties are properties providing housing accommodation, (Leramo,1992) Residential properties are generally constructed to mean property primarily acquired for residence and its attributed to giving shelter, security, comfort, privacy, investment, and personal identify, (Malady and O’ Donneland, 1994).

Property: Legally there are two types of property. They are real property which is land and buildings and personal property that is all kinds of personal possession. In economic the term property means anything that yield interest or income to the owner,

The terms property is defined as the bundle of right invested in a persons or a cooperate bodies over a specific parcel of land, buildings object, e.t.c in the relation to other persons which gives right to use and enjoy and control on the land.

1.8 Types of Residential Properties in Florence Court Estate

The followings are some of the residential real estate investments in the studied area:

1. Apartment or Flat – An individual unit in a multi-unit building. The boundaries of the apartment are generally defined by a perimeter of locked or lockable doors.

2. Multi-family house – Often seen in multi-story detached buildings, where each floor is a separate apartment or unit.

3. Terraced house or townhouse– A number of single or multi-unit buildings in a continuous row with shared walls and no intervening space.

4. Condominium – A building or complex, similar to apartments, owned by individuals. Common grounds and common areas within the complex are owned and shared jointly.

5. Cooperative – A type of multiple ownership in which the residents of a multi-unit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.

6. Semi-detached dwellings

7. Duplex – Two units with one shared wall.

8. Detached dwellings

9. Tents – Usually temporary, with roof and walls consisting only of fabric-like material.

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.

Sunday 1 January 2023

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

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.

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

ABSTRACT

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

1.2 Statement of Research Problem

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

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:

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

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

Geography

Climate

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

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.

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.