An Evaluation Of The Maturity Of The Nigerian Property Market

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School of Postgraduate Studies University of Lagos
This research on the Nigerian property market is set to ascertain its maturity status and find out factors that may have constrained its growth with a view of identifying steps to be taken towards its re- positioning. This study employs the property market maturity paradigm suggested by Keogh and D’Arcy (1994) as a framework for analysing property markets using the six criteria of – extent of diversity of use and investment objectives catered for, flexibility, property profession, market information and research, standardisation of market practices and property rights. The population for this study comprised estate surveyors and valuers, property developers, public officers charged with land administration, land use and development control. Others include investment fund managers and analysts. The study covers the property markets of Lagos, Kano, Port- Harcourt and Abuja. A total of 247 estate surveyors and valuers in the four cities were sampled using the cluster sampling technique alongside 24 interviewees in a mixed methods research design that involved a questionnaire survey and semi- structured interviews. The questions posed mostly as Likert- scale in the survey instrument were analysed using means after been subjected to a Kruskal Wallis H Test. Other forms of data employed include historic rents and official exchange rates of the Naira against the US $, and rates of inflation analysed to test for stability of values within the property market. On the basis of a uni- dimensional maturity criteria classification metric –scale, developed in the course of this study, was employed to evaluate the maturity of the Nigerian Property market using the four cities. On the aggregate, the market is adjudged to be open. It has however failed to achieve on all the other criteria. There is a thin presence of property professionals which accentuates the difficulties in entrenching standardised market practices and hence transparency. It would appear that the two problems of market capital liquidity, and the information quality and flow would have been overcome but for an endless restructuring of the financial and banking sectors of the economy prior and after the 2008 global recession. Based on these findings, the market is adjudged to be immature. Nevertheless, the market exhibits potential to emerge from its current status but must be given the needed fillip through a well articulated mix of land use policies and property based taxation. Deliberate efforts must be made to boost the presence of property professionals in the market, entrench standardisation of market practices, and property market research must assume centre- stage in the business of the professional society and academia.
Property market , Property developers , Fund managers , PROPERTY Evaluation
Dugeri, T. T. (2011)An Evaluation Of The Maturity Of The Nigerian Property Market. A Thesis Submitted to University of Lagos School of Postgraduate Studies Phd Thesis and Dissertation, 177pp.