1.1 BACKGROUND TO THE STUDY
A functional residential building is crucial to the development of a healthy and comfortable living environment. It is one of the three basic needs of man coming next in importance to food. Its importance lies not only in its value for individual household residing in it but also in the neighbourhood where it is located. Just as a building is meant to be accessible, it is also meant to provide comfort for the occupier and comfort can only be obtained from availability of adequate and appropriate facilities within and around the building.
For the purpose of this study, the term “housing facilities” however consists of internal facilities and the structural form of the house. Internal facilities include; toilet/bathroom, kitchen, water supply and burglary proof among others.
The structural form of a house refers to a house built with standard building materials, roofing sheets, floor and wall finishes among others
The manufacturing of some or most of these facilities, by and large affects the rental value placed on a residential property in the same vein, it has been noted that even when such facilities are not fully available or inadequate, rental values do periodically increase, resulting to what Olayinka and Somfun (2007) termed “the exploitation of prospective or sitting tenants”. This is a common feature of neighbourhoods at the city centre, where there is a predominance of structurally unsound and sub-standard houses. Study have shown that in Ado-Ekiti neighbourhoods at the city centre are characterized by properties built with mud, rusted iron roofing sheets that are susceptible to leakage, mud floors and poor ventilation.
Many of these properties do not have in-compound water supply. Thus, many of these household have to go varying distances within or outside the neighbourhood to fetch water. Similarly, many of the properties do not have exclusive kitchens, bathrooms and toilet facilities. Sharing of these facilities is a significant characteristic of the urban poor in these neighbourhoods despite depressing housing conditions of the poor household in these neighbourhoods. High rental values relative to quality as well as income have continued to worsen their quality of life.
Real Estate development requires huge capital investment which is not easy to come by, particularly in most developing countries. The concern of most investors in property development therefore is out to maximize the return on their investments and recoup their money within a shortest possible period.
1.2 STATEMENT OF THE PROBLEM
Properties can have more value by maintaining the infrastructural facilities or by provision of adequate infrastructural facilities. There are some problems or factors that cause malfunctioning of infrastructural facilities in residential property and thereby reduces the value of it due to: poor planning, bad workmanship, lack of sufficiency in mechanical quality of materials chosen and used or the use of low quality materials, poor construction technology, poor funding for repairing of damaged components, poor maintenance culture, nonchalant attitude of the user of such facilities
Real Estate developers were consistently faced with the issue of making decision on the type of property to invest their hard-earned income or highly competitive secured mortgaged funds, which were attached with high lending rates. One of the different sectors that are begging for such investment is residential property development. Residential property market has been the most common property market in Nigeria and most active: especially in the urban area. The demand for housing is ever on a increase as a result of rural-urban drift and short of demand at any given time and remained perennial.
It’s advisable those investors in residential: building should invest in modern design of tenement property that will cater for both the present and the future needs. Also, those properties that have fallen short of good design should be upgraded, so as to put a stop to its dwindling development and most importantly its dwindling value in the property market in which these problems tend to address.
1.3 AIM AND OBJECTIVES
The aim of this study is to examine the effect of malfunctioning infrastructural facilities on the residential properties in Ado-Ekiti with a view to proffering solution to it
To achieve the stated aim, the following objectives are set out to:
1.4 SCOPE OF THE STUDY
This project is aimed at assessing the effect of malfunctioning infrastructural facilities in residential building, especially the tenement property values in Ado-Ekiti. It will be too broad and unrealistic to have covered the whole of Ado-Ekiti.
However, for the purpose of achieving the essence of this research, this project is limited to residential buildings in Aba-Erinfun, Ado-Ekiti.
1.5 LIMITATIONSOF THE STUDY
In the course of carrying out this project work, some constraints pose a threat to its success among which are: The trust and incorporate attitude of most of the people interviewed. Also, there was a restraint of accessibility to the properties towards ascertaining the facilities available by the occupants for security reasons as well as limited number of relevant text and journals on residential properties also posed constraints to the work.
1.6 SIGNIFICANCE OF THE STUDY
The essence of investing in real estate development whether for owner-occupier or investment purposes is the expected optimum returns which could be economic, social status, prestige e.t.c. it was discovered that of all the property types, residential property is playing a very significant role in providing housing which is more than mere shelter for mankind.
This work therefore seeks to examine the factors responsible for lack of infrastructural facilities in residential properties, its resultant effect on its value and proffers solution to correct both the current and future anomalies in infrastructural facilities value in Ado-Ekiti.
1.7 DEFINITION OF TERMS
Residential Properties: These are dwelling houses which relate largely on the growth of the population, availability of land and housing need of the society. They are the most common among all landed properties in the urban centre. They come in form of tenement buildings, block of flats, bungalows, cottages and detached houses.
Property: A property as conceived from layman point of view means what a man owns, his asset and what depicts his socio-economic status or worth. From Estate Management proffession viewpoint, it is a landed property or real estate under a single ownership. It also denotes the characteristics and quality of rights which owners possess in a limit of land (Olusola Oyebanji, 2007).
Value: This is the amount of money which can be obtained for an interest in landed property at a particular time from persons able and willing to purchase it (Kunle Onisade & Sunday Olajide, 2007).
Property Value: This is described as the amount of money obtainable from a person or persons willing and able to purchase a property when it is offered for sale by a willing and able seller.
Rental Value: This is the open market rent paid or payable from year to year in respect of tenements or has established by analysis or comparison of the general level of rents actually paid for that class of tenements in the area of locality arranged at arm’s length.
Infrastructure: This refers to the technical structures that support a society such as roads, bridges, water supply, sewers, electrical grids, telecommunication and so forth and can be defined as the physical components of interrelated systems providing commodities and services essential to enable, sustain and enhance societal living condition