Challenges Associated With Real Estate Investment in Enugu Nigeria
Chapter One
OBJECTIVES OF THE STUDY
The following are the objectives of this study:
- To provide an overview of real estate investment in Nigeria.
- To examine the challenges associated with real estate investment in Nigeria.
- To identify the way forward for real estate in Nigeria.
CHAPTER TWO
LITERATURE REVIEW
Introduction
In this chapter, the researcher shall be looking more on the review of previous study on the current research thesis. The researcher will review this study in the following style. Conceptual Clarification, Theoretical Framework, Empirical Studies or Literation on the Subject Matter and Summary or review.
Conceptual Clarification
Concept of Real Estate/Property
Property connotes land or immovable as it is sometimes called and other objects known as chattels or movables (Megarry, 1982). Legally, these are known as real property and personal property respectively. Property is the exclusive right to possession, enjoyment and disposition of anything which can be the subject matter of ownership; and it also includes the exclusive right to the future benefits of an economic good, be it material or non-material, as determined by law.
The above rights constitute a bundle of rights (Denman, 1968). Real property refers to the interests, benefits and inherent right in the ownership of the physical land (real estate).
But for the purpose of this study real property means land and buildings, which are categorised into different types according to the various uses to which they are being put and for which they are designed. These include residential, commercial, industrial, agricultural, recreational properties etc.
Concept of Development
Development is the process of carrying out works involving a change in the physical use or in the intensity of an existing use of land or buildings (Balchin et al., 1988).
The term ‘development’ as defined in section 2(1) of the Nigerian Town and Country Planning ordinance 1948, states that “development in relation to any land includes any building or rebuilding operation and any use of land or any building thereon for a purpose which is different from the purpose for which the land or building was previously being used”.
In his own view, Lichfield (1956) pointed out that among the Architects, Planners, Engineers and Surveyors, the word development generally means “the process of carrying out construction involving a change in the intensity of the use of land or with a re-establishment ranging from the humble addition of a bedroom or a garage to a private house or the ambitious re-development of a city centre”.
Development can also be seen as the application of capital, labour, managerial skill and entrepreneurial ability to land resources for the purpose of improving its productive capacity.
Forms of property development include residential, commercial, industrial and office properties. The development of a particular piece of land is a process, which involves much than the mere carrying out of constructional works. It starts before, perhaps many years before, works and buildings are designed; and lasts, perhaps well beyond the time when the new works are completed, until the new accommodation is fully occupied and used.
Development generally means the process of carrying out the constructional works, which are associated with a change in the use of land or of land with its buildings, or with a change in the intensity of the use of land, or with a re-establishment of an existing use.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION / RESEARCH DESIGN
Research design is a strategy or approach to be used for conducting a scientific enquiry, a research design is a plan or blue print that specifies how data relating to a particular problem should be collected and analyzed.
In this study, a research survey was conducted to supplement other sources of data; this includes textbooks, journals and other printed materials. Survey research studies both large and small population to discover the relative incidence, distribution and interrelation of sociological and psychological variables. Survey research is more reliable for this study because it enables samples to be selected from the entire population in other to analyze data, which would allow the researcher to make references on characteristics of the identified population.
Therefore, a well-constructed questionnaire was used to pose relevant questions to the respondents.
BRIEF DESCRIPTION OF THE STUDY AREA
The researcher covered Ogui New Layout and G.R.A in Enugu.
Ogui New Layout located at the North of Enugu has a high population density. Commercial and residential properties are found in this area but much more of commercial properties. This area comprises of the low income earners and few high income earners.
Government Reserved Area (G.R.A) on the other hand is located at the North of Enugu. It’s mostly for residential use. High income earners are mostly found here as they can afford to transport themselves at a high cost from their area to the central busi ness district for work or busi ness transactions.
POPULATION OF STUDY
The population of the study comprises the population of Ogui New Layout and G.R.A in Enugu and limited to them alone. The population of study is 115 (one hundred and fifteen) respondents. (I.e. investors, and land owners Estate Surveyors)
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
This chapter deals with the presentation, analysis and interpretation of the data collected by the researcher in the course of carrying out the research. The presence of data makes no meaning to anybody unless adequate analysis of such data is carried out. The research is based on the analysis of questionnaires, field survey, and interview.
CHAPTER FIVE
SUMMARY AND RECOMMENDATION
It is hereby recommended that record of past transactions regarding borrowing and lending of finance for real estate development should be kept so as to assist others who would want to go into such transactions in future.
Many problems plaguing the success of real estate financing in Nigeria can be solved if our economic problems are solved since most of these problems are due to the inflationary economy that Nigeria faces.
Government should intervene in this financing by instructing these financial institutions to slack their stringent rules for lending loan to developers. From the foregoing discussion, it can be concluded that finance plays a vital role in real estate development hence; it should not be handled with levity by both government, financial institutions and the real estate developers
Reference
- Lichfield, N.: Economics of Planned Development. The Estates Gazette Ltd., London (1956).
- McCarthy, J.F.: Highway Financing by the Toll System. Bureau of Public Administration, University of Califonia, Berkeley (1954).
- Megarry: Manual of the Law of Real Property 6th Ed.
- Stevens & Sons Ltd., London (1982).
- Oprenheim, P.: Property Financing Methods, The Estate Gazette Ltd., London (1973).
- Paish, F.W.: Business Finance. Report of Committee on Finance and Industry. Macmillan (1953).
- Ratcliff, R.U.: Real Estate Analysis. McGraw Hill, New York (1961).
- Ratcliffe, J.: An Introduction to Urban Land Administration.
- The Estate Gazette Ltd., London (1978).
- Rics: Finance in Property. Royal Institute of Chartered Surveyors (1977).
- Ruddock, L.: Economics of Construction and Property.