Problems and Prospects of Real Estate Development in Nigeria. A Case Study of Residential Properties In Port Harcourt

Abstract

Real estate development and use of land are prompted primarily by the products and satisfaction that could be derived therefrom. Problem of Real Estate development in Nigeria started during the colonial government and was transferred to Nigerian government. Inspite of the relevant efforts of both the colonial government and the post colonial government in alleviating the problem of Real Estate development in the country, nigeria they remain unresolved till date. After considerable exposure to the deplorable and pathetic condition in which our people are forced to live in cities like Port Harcourt, I became interested in the issue of Housing and its development in the country with particular reference to residential properties at Port Harcourt. However, the aim of this study is to, r~d out why the investment in residential properties is low and to explore avenues of encouraging investors to increase the level of investment in residential properties. While the objectives of the study are as stated below: (i) To identify and examine the problems of Real Estate development in Nigeria with particular reference to Residential properties at Port Harcourt (ii) To examine and analyse the trend of residential property development and see whether there has been change in the development of residential properties, in line with the increase in the cost of construction of residential properties (iii) To find out what impact, (Negative or Positive) this increase in cost of construction of residential properties has on property values. (iv) To assess the prospects of real estate development (v) To make appropriate recommendations The 'random sampling method I were used in this study in the process of data collection. The primary sources of data for this research were from questionnaires, personal interviews and personal field observations. While the sources of secondary data include mateials obtained from estate journals, magazines, seminar papers, symposia, workship materials and books. In the course of the study, the researcher has choosing a null and alternative hypothesis which are as folJows: (a) NULL HYPOTHESIS (Ho): The increase in cost of construction has a negative effect on the development of residential properties (b) ALTERNATIVE HYPOTHESIS (Hl): The increase in cost of construction has a positive effect on the development ofresidential properties However, the scope of this study is limited to Residential property development as it concerns Port Harcourt. Though real estate develpment is a special kind of investment and tends to be beneficial to diverse group of people. This study is nevertheless intended to benefit the owners and occupies of Residential properties, Real Estate Developers, Estate Managers as well as students of Estate Management. Meanwhile, time was the greatest constraint to this study, coupled with limited finance, and lack of records and non-challant attitude of some public servants. In the course of carrying out this study, problem areas were identified and research questions formulated to help in answering them. Relevant literature on Real Estate development in Nigeria were reviewed to get the views of eminent scholars. Also the objectives and function of real estate develpment in Nigeria including the development process and parties involved in development were further discussed .