EFFECTS OF LOCATION ON REAL PROPERTY DEVELOPMENT (A CASE STUDY OF ABAK LOCAL GOVERNMENT AREA, AKWA IBOM STATE)
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The impact of location in housing market is very significant, since housing units are fixed in location; they differ in terms of their surroundings and location community in which they are located, and their nearness to employment and shopping place. (Nwaba, 2014).
Locational area also means that a dwelling’s surrounding is possible of great importance in affecting its value. This research therefore among others examined how location determines house prices and the preferences of the people. (Friedman et al, 1997).
From time immemorial, real property is considered one of the three fundamental necessities of life. The fact remains that unlike food and clothing, real property is difficult and costly to acquire, people need to be housed, as it is very essential and indispensable because it is the platform of all human activities. Hence, it plays a vital role in social, economic and psychological development of an individual, a state and a nation at large.
In view of the rapid urbanization coupled with rapid population growth, demand for properties has experienced an up shot.
This is the case in Ilorin since it assumed the status of a state capital in 1967 and more recently increased demand in the face of relatively low supply of real estates have brought about increased property values, the value of landed properties is influenced by several factors among which accessibility stands to be prominent (Nwuba, 2004 and Friedman et al 1997).
Many property developer analysts often play down accessibility, whereas it is a key element in the functioning of land resources that creates advantages and disadvantages of location in the process, it is axiomatic to say that landed properties are fixed in geographical location, and are relatively inelastic in supply.
In the course of interaction of man and his activities, it has been established that landed properties located in position of greatest accessibility, are more sought after. The general tendency for management is to seek the shortest, cheapest and most convenient arrangement of interaction.
The term costs and ease of such relationship are therefore crucial factors in the analysis assessment and eventual choice of location (Lean and Goodall, 1983). Since the demand for different types of properties is highly dependent on location and level.
In relation to the property location is the market/demand analysis of the proposed value in relation to demands needs. This comprises the establishment of the market or school such as higher institution for the analysis of the supply and demand for the property. The essence of this is to provide the developed with information on the demand strength and trend within a particular location at a particular time. In doing this, the Estate Surveyor and Valuers examine the present and future, national and regional property markets and takes into account its local economic potentials. Therefore, a Surveyor trained in land values, consequent upon the execution of the property value without such advice, entirely wrong notions can often to prevail about the true economic outcome of value scheme. This is why it is appropriate to practice Estate Management as potential valuers and in advance certificate to be Real Estate Surveyors and Valuers. This research therefore focuses on examining the Effects of Location on Real Property Development.
1.2 STATEMENT OF THE PROBLEM
Location as the main argument and problems between potential and prospective developer in Akwa Ibom State and Abak in particular, specialist in a given branch of knowledge (various Scholar) in property location reveal that, good location among others is one of the excels most powerful feature for values success.
In contrast to other in their branch of knowledge argue that, a good property prosper irrespective of its location.
This study therefore seeks to provide solution to the following questions.
Location analysis and decision making are aimed at reducing the operational cost of both the input and the output of the property location not determining all environmental threat to the building and other infrastructural facilities.
1.3 AIM AND OBJECTIVES OF THE STUDY
The aim of this research is to determine the effects of location on real property development in Abak urban, to achieve the above stated aim, the following objectives are set:
To identify the various factors influencing location on real property development in Abak Local Government Area.
To examine the relationship between location and property development in the study area
To examine the effects of location on property development in the area.
1.4 RESEARCH QUESTIONS
The research questions are as follows:
- What are the various factors that influence property location in Abak Local Government Area?
- What is the relationship between location and property development in the study area?
- What are the effects of location on real property development in the area?
1.5 SIGNIFICANCE OF THE STUDY
This research will be useful to property developers and Estate Surveyors and Valuers in handling the problems of its practical prospective.
It will also provide useful data to Government agent responsible for making policies on property location.
It will evaluate the general public in the property location in Akwa Ibom State and the study area in particular.
Finally, the relevant of the study to student or further researchers cannot be over-emphasized as it shall form as reference materials to them that may want to embark on further study on the subject matter or similar field.
1.6 SCOPE OF THE STUDY/ LIMITATIONS
This study shall within the context of scope concentrate on the effects of location on real property development in Abak urban.
This study shall also touch the problems associated with property development, the functions and responsibilities of a property as well as solutions to the effects of location on real property development in Abak urban.
LIMITATIONS OF THE STUDY
