CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
As far as real estate is concerned, value goes with the same economic laws as values of other goods and services. Therefore value of property relates its basis to the law of demand and supply just as price of commodity in the market. The other underlying factors that guide property market in the supply shall also be highlighted. Property can be seen in various ways, it is a multi-dimensional product and the factors that influence values are of different kinds which can be looked at in this work.
Property values tends to increase in Nkwerre due to expanding transportation networks, good residential properties etc. property value is the estimated worth of any given property in other words, property value differ from place to place depending on various factors such as population,, location, ease of access, presence of various infrastructural and social amenities in the area etc.
Value is the worth of any article in exchange. The money worth will accrue to the lesser will be an inverse function of the value of demand, long term 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 cause was cheap., But in decade, property market of the study area has experienced gradual change in the property value. With the emergence of urban markets in Nkwerre, the situation has changed. Many people are no longer about to own property unlike before where property was seen as a sign of being wealthy, for prestige, status etc. It was a fool for competition, where every man in Nkwerre who owned a storey building is regarded as a rich man. But since Nkwerre became urbanized, people no longer own property because of the difficulty in acquisition of land and the high cost of building constructions. Therefore, they were left with the alternative of renting other people’s property in order to satisfy their need for shelter. The nature of this change is the focus of this project, the concept of the values of property, factors affecting property values and other related topics will be treated. In the course of this study, the property values trend in Nkwerre, urban area will be examined so as the determinants of property values in Nkwerre L.G.A Imo State.
1.2 STATEMENT OF PROBLEM
In taking into considerations the property values trend in different villages in Nkwerre, Imo State, from 2010-2016 is a problem. To know if property found in Nkwerre are of great values and to what use is being put to. Also in recommending possible ways of improving the value of the property.
The conversion of rural areas into urban area through development is currently occurring at an unprecedented rate in recent human history and is having a market effect on property value. The presence of various infrastructural and social amenities in the area influence property value. In Nkwerre, most of the lands has been characterized urban because urbanization keep on crouching into the rural lands, which has resulted in a constant increase in property value in the area. This research will help to know the trend in property value and its growth rate in Nkwerre.
1.3 AIM OF THE STUDY
The aim of this study is to examine property value trend in Nkwerre urban area in Nkwerre L.G.A Imo State. With the view to assist real property investors to make appropriate decisions in real property within the study area.
1.4 OBJECTIVES OF THE STUDY
This study will be beneficial to private individuals, developed investors and estate surveyors and valuers but mostly the occupiers of the properties in Nkwerre, letting them know the factors influencing the value of the property in the study area.
Also to the would investors, letting them know of the current property value trend in the study area and to also help them to see if the price of homes is increasing faster in one area than others, to also know if the average property price is more than in other neighboring towns.
The developers fear that the new housing development will worsen local amenities, reduce their well being and perhaps even undermine the capital value of their homes, but with knowing the property value trend, it will help them know that property prices do not always demine around new housing development, as many fear at least not for a sustained period of time. Sometimes there are short time price reductions during or immediately after the construction period. The study of trend of property values is of great importance to the estate surveyor and valuer in the aspect of assessment purpose and valuation. This is because it provides a good grove and it can be used for projecting such things as revenue generation, either for the state or local government.
Finally, this research will serve as a reverence guide to other researchers and scholars intending to carry out a further research or a relating research to this study.
The study focuses on the examination of property value trend in Nkwerre (urban area), in Nkwerre L.G.A Imo State, it is limited to Nkwerre town.
Nkwerre is one of the local government area in Imo State Nigeria with its headquarters in Nkwerre town where the name of the local government area is derived. It has an area of 38km2 and a population of 86,152 at the 2006 census.
Nkwerre is made up of 31 villages which are Umuagu, Ukube,Eziala, Durumba, Obinuru-Umuduraji, Umuogbo, Ukwuinyi, Umuokpu, Amorji, Umuezike, Umunyem, Umukabu, Umulolo, Umukabia, Okwu, Duru-awzie-Nnawahia, Umugara, Umueze, Umunadi, Obinacho, Umuduraji, Ndibara-Amaegbu, Dural, Okala, Durumba, Eziabo, Umueziala-Amaudara-Umugara,Umulowe-Umugara.
These are the 31 villages in Nkwerre. Nkwerre Local Government Area (L.G.A) is one of the unique councils in Imo State. One of their uniqueness is the urban and cosmopolitan of the area though of a relative population, the caliber of human beings found in this community is highly exceptional businesses and investments in crude oil which was discovered by Shell petroleum development company (SPDO) in 1983/1986 at Umudi. Natural gas, large deposit of natural gas which is situated at Mbara, Oweme-Ukuuniyi, coupled with a fertile agricultural land is the Ng Wu stream in Nkwerre town, Ngwu is a source of natural pure water after treatment.
Nkwerre is bounded in the North by Ideato North and South, in the South by Isu L.G.A, East and West by Nwangele and Orlu L.G.A.
In the writing of the thesis, difficulties were met where as some of them were expected and others less expected. The major constraints of this project work was time, which led to the undertaking of the project to be very short thereby limiting the study to specific areas.
Another problem was finance. The field study was difficult due to inadequate finance; this is because one has to travel to get information required for the project to be completed as needed on the area of the co-operation from the public.
I found it difficult to convince some people especially the illiterate among them to tell me few things about the community (Nkwerre) in respect to the property value to their area from 2010-2016.
Finally, most of the respondents were skeptical above the research, irrespective of the constraints mentioned above good effort were made to ensure that my project work was carried out successfully.