CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

As far a real estate is concerned, value goes with the same economic laws as values of other goods and services. Therefore, value of real estate relates its basis to the law of demand and supply just as price of commodity in the market. The other underlining factors that guide landed property market in the study shall also be highlighted. Value is the worth of and article in exchange. The money worth that will accrue to the lesser will be and inverse function of the value of demand, long time age especially in the days of oil boom, the property market of the area was dull because people prefer to build than to let or lease because building cost was cheap. But, in the decade the property market of the study area has experienced gradual changes in rental value.

The nature of this change is the focus of this project, the concept of values of property factors affecting property values and some other related topics will be treated

Various factors that can being about changes in landed property values and a graphical representation was made which showed a monumental changes in their rental values when compared the present year.

Edo is a state in Nigeria. With Benin City as capital, the population of the entire state is approximately 8 million. It is made up of four major ethnic groups; namely Edo (Binis), Esan, Owan and etsako. However, the State has a high presence of residents from across the country and the world because of its cosmopolitan tendencies. Benin City the capital has a history of being one of the foremost destinations of Europeans during their exploration of the African continent many centuries ago. Some of the flash points have remained enviable tourists’ attractions for the state.

The Mid-Western Region was a division of Nigeria from 1963 to 1991, being known as the Bendel state from 1976. It was formed in June 1963 from Benin and Delta provinces of the Western Region, and its capital was Benin City. It was renamed a province in 1966, and in 1967 when the other provinces were split up into several states, it remained territorially intact, becoming a state.

During the Nigerian Civil War, the Biafran forces invaded the new Mid-Western state, en route to Lagos, in an attempt to force a quick end to the war. While under Biafran occupation, the state was declared as the “Republic of Benin” as Nigerian forces were to retake the region. The republic collapsed a day after the declaration as Nigerian troops overtook Benin City. Edo State was formed on August 27, 1991 when Bendel State was split into Edo and Delta States.

With Benin City as capital, the population of the entire state is approximately 4 million. It is made up of three major ethnic groups; namely Edo (Binis), Esan and Afemai (Owan/Etsako) with Akoko Edo. However, the State has a high presence of residents from across the country and the world because of its cosmopolitan tendencies. Benin City the capital has a history of being one of the foremost destinations of Europeans during their exploration of Africa continent many centuries ago. Some of the flash points have remained enviable tourists’ attraction for the state.

The main ethnic groups in Edo State are: Edos, Afemais, Esans, Owans and Akoko Edos. Virtually all the groups traced their origin to Benin City hence the dialects of the groups vary with their distance from Benin City. The Bini speaking people who occupy seven out of the 18 Local Government Areas of the state constitute 57.54% while others Esan (17.14%) Afemai compirising of Etsako (12.19%), Owan (7.43%), and Akoko Edo (5.70%). However, the Igbira speaking communities exist in Akoko Edo as well as Ijaw Izons, Urhobos, Itsekiris communities in Ovia North East and South West Local Government Areas especially in the borderlands. Also, Ika speaking communities exist in Igbanke in Orhionmwon LGA.

A lot of communities and indeed the ruling dynasties in all the clans trace their roots to the ancient kingdom of Benin. Cultural similarities are in the areas of religious worships, folk-lore, dances, festivals, traditional modes of dressing, arts and craft. The political pattern and behaviour are based on a situation where both the monarchial and republican ideas flourished in an integrated manner. The colourful traditional festivals in the state manifest its rich cultural heritage. Critical among these are the Igue and Ekaba festivals done among the Binis and manhood initiation (age groups) by the Etsako people. With an estimated population of 3,218, 332 made up of 1,640,461 males and 1, 577, 871 females and a growth rate of 2.7% per annum (NPC, 2006), as well as a total landmass of 19,187 square kilometers, the state has a population density of about 168 persons per square kilometers.

Tourist attractions in Edo State include the Emotan Statue in Benin City, Ise Lake and River Niger Beach in Agenebode, Etsako-East; Mike Akhigbe Square at fugar, Ambrose Alli Square, Ekpoma, River Niger Beaches at Ilushi, BFFM Building at Ewu, College of Agriculture and Aqua Culture Technology, Agenebode, Okpekpe with its hills and scenes and the Usomege Hills at Apana-Uzairue, Somorika hills in Akoko Edo, where a government-run tourist center at Ososo is set among spectacular scenery. The state produces crude oil. and other mineral resources like limestone and quarry.

1.1         AIM OF THE STUDY

The aim of study is to examine the rental value of landed properties since the creation of Edo state.

1.3       OBJECTIVES OF THE STUDY

1. To identify various factors that responsible for rental value of landed properties in Okpella, Edo state
2. To examine the rental value of landed properties in the study area.
3. to identify various problems militating against the performance of landed properties in the study area.
4. To make recommendations and conclusion.

1.4       JUSTIFICATION OF THE STUDY

In ascribing any rental value to any set of property the future level of productivity of the property have became a thing of significance. So one of the things to which the developers are most sensitive is the feature level of rental. A small amount of the balance in prediction can have great effect in the success or failure of a project. This as a guide to viability of a development scheme, it is important that feature levels of income generated from the property must be highly granted.

In doing this, decision which affects the feature has to be taken into consideration. But before this can be done, it is necessary to make allowance for condition that would show ahead. Since current rental on investment as mainly aims at meeting feature needs of the owner.

Landed property in its nature is more or less dynamic thus a study of past trends of the property in the market would serve as a useful guidelines to the whole state be it investors. This enable public as well as private developer know how their scheme fit into future development of the sub-growing urban area as a whole.

The study of trends of property values most especially landed property is of great importance to the estate management profession. An understanding of trends on property value is great importance for their being assessment purpose or valuation.

This is because it provides a good guide and it can be used for projecting such things as revenue generation, either for the state or local government. An understanding of the trends in rental value of a property, particularly landed property, in most cases it can also be used to determines the capital value of the property in the nearest future and also the actual rent to be taken by the landlord, could be determined if an accurate trend can be got.

1.5       SCOPE OF THE STUDY

Basically, the project proposes to examine the trends in rental value of landed property within the state. Although the estate belongs to the Government which has vested interest into the individuals who developed the respective property. The respective landlords who pay the corporation an annual ground rent now lets out their property for over years

In this project a critical examination will being made on the responsible factors and forces causing changes in rental value of landed properties.

1.6       RESEARCH METHODOLOGY

During the course of this study, data and other important materials were collected in the following ways,

1. Reference to relevant books and journals
2. Oral interview in connection with the study was carried out within the study area.
3. Field survey of the study area.

1.7       LIMITATION OF THE STUDY

The major problem we encountered was that Okpella is a large area with many estate surveyor and value firm, location at relating short distance from each other as had to result to trekking from one firm to another and also some of the estate surveyors and values were not willing to answer the oral interview conducted because of their tight schedules.

You either get what you want or your money back. T&C Apply

Talk to us right now: (+234)906-451-7926 (Call/WhatsApp)

---