APPRAISAL OF RESIDENTIAL REAL ESTATE DEVELOPMENT

APPRAISAL OF RESIDENTIAL REAL ESTATE DEVELOPMENT
 
CHAPTER ONE
INTRODUCTION
1.1   BACKGROUND OF THE STUDY
Housing is second only to food in man’s hierarchy of needs (Eleh, 2010) and it is also crucial to our national development. The demand for housing needs exceed its supply, as a result of near total neglect of the sector by the government and the unprecedented rural – urban migration. Thus large majority of urban residents particularly the low income earners who constitute about 50% of Nigeria’s 150 million people (Oni, 2010) are forced to live in uncontrolled and unplanned manner giving rise to extensive slums and shanty towns Eleh (2010).
It is obvious that the government alone cannot tackle this staggering deficit even with various statutory provisions and policies that were put in place. And so it is noted that the use of Private Public Partnerships (PPPs) would provide the key to unlock the housing problem and bridge deficits particularly for the middle income earners. However, this study has attempted to critically examine the concept of PPP models in the case study, its source of finance, construction methods and provide a good analysis of the development process.
1.2      AIM AND OBJECTIVE
The aim of the study is to examine public private partnership scheme in the supply chain of residential housing with particular reference to Wemabod Estate Ibafo, Ogun state.
Towards this end, the following objectives shall be set to achieve the aim, namely,
·        Examine public private partnership’s effort and areas of improvement in filling the housing gap.
·        Examine the building techniques used in mass residential housing.
·        Examine mortgage syndications as a tool to sourcing for finance for the development of the case study.
1.3      MATERIALS AND METHODS
The study draws on the overall performance of all the Stakeholders in the PPP as regards the development of the case study.
It uses direct observation technique, a way of primary data where site activities and pace of work using the modular concept of Moladi Technology was carefully observed. The use of Gantt chart is used to illustrate the project schedule of work and monitor the progress from start to finish dates.
A set of twenty questionnaires were administered. Each one is divided into sections A and B. Section A is directed to prospective buyers and occupiers of Estates in the neighbourhood. It contains information on socio economic characteristics of respondents, affordability, mortgage options and the acceptability of the Moladi Technology.
Section B is directed to staff of Trinity Savings and Loans Limited, Wemabod Estates Limited and some selected Developers. It contains information on options to sources of finance, policies guiding operations, accessibility to land and marketing of the completed housing units.
Some other vital information were not released, such were considered to be confidential and not for public consumption. However, the available information through personal interviews complement the information retrieved through the questionnaires. In addition to this, secondary data was extracted from published and unpublished work in prints and on the internet
1.4      SCOPE AND LIMITATION
The study is limited to Ibafo, Ogun state where development is on-going. The proximity of Ogun state to Lagos makes it the next port of development as Lagos is currently overpopulated and overcrowded with an estimated population of about 15.5 million people (Oni, 2010). Official statistics show that the housing supply deficit in Ogun State is over 240,000 units and it is expected to increase annually by 7,500 units (Ogun State Ministry of Housing, 2008) according to Ibem and Aduwo (2012).
It also focuses on Moladi building technology being the construction technique used and adopted for Wemabod Estate Ibafo as canvassed by the Developer in the capacity of the firm of Messrs Tope Ojo and Tunde Olonisakin Estate Surveyors and Valuers. The full building engineering and structural works were not considered.