Department of Estate Management

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Browsing Department of Estate Management by Subject "Affordable Limit"

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    Open Access
    An Analysis of the Implication of Land Speculation Activities on Land Affordability in the Urban Fringe Area of Lagos State, Nigeria
    (AfRES- African Real Estate Society, 2017-09-13) Thontteh, E. O.; Omirin, M. M.; Olanrele, O. O.
    Purpose – While affordability studies have centred on house possession through either mortgage repayment or household ability to pay rent in the developed countries, land affordability has remained a topical issue in the third world countries and emerging economy with consequential effect on the economic growth. The purpose of this paper is to examine the activities of the real estate developers as touching the capability and ability of the first time buyers to pay for a plot of land towards actualising their home ownership dream. Design/Methodology – The study adopted a quantitative paradigm of research method. A questionnaire survey was carried out with members of the Real Estate Developers Association (REDAN) and household heads in Lagos urban fringe as stakeholders. The Income structure of the civil/public service was also collected. The study employed the use of Land Affordability Index relative to Affordable Limit to determine buyer’s affordability. Findings – The study finds a speculative motive in the activities of developers rather than solving housing supply problem resulting in non-affordability of land to the end user or first home dreamers. 77.8% of the developers’ affirmed they subdivide within two years of land purchase for the purpose of resale to the end users and further land retailers. However, other factors such as increase in demand for land, change in income, scarcity of developable land was also found to have impacted on the ease of land affordability. Practical Implications – The study revealed that the solution to the lingering housing Problem in Nigeria with over 16 million unit deficit, will not come from private developers if the activities of the developers continue unabated. Originality/Value of Work – The paper in addition to its contribution to literature, is the first to study land affordability in developing/third world context especially where there is inefficient mortgage system for home ownership, making individuals to acquire land and build their houses.