Posted: 2022 | Pages: 98 | Format: MS Word | Chapters: 1-5 | Others: Questionnaires & References

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ABSTRACT

in recent times, Anambra state has witnessed unprecedented population upsurge which is partly as a result of boom in commercial activities in Onitsha and government’s participation in providing conducive business environment. The growing population has worsened the housing challenge in the state and has led to increased slum at various suburbs. The aim of the study is to appraise government participation in residential property development in Nigeria. The objectives were to determine the policy initiative of the government in residential property development, to determine the extent of government participation in residential property development, to identify the extent of government collaboration between private real estate developers and the government of Anambra state and identify possible ways of improving residential housing in Anambra state. Survey approach was adopted. The primary and secondary sources was used to collect data while the Taro Yamane’s model was adopted in determining the sample size. A total of 166 questionnaire were administered out of which 150 were filled, returned and analyzed. It was recommended that there is a need to critically identify measures to solve housing deficits, the government should look into providing adequate securities to avert incidents of harassment of private developers, infrastructures such as good road network and street lights should be extended to undeveloped areas in order to create viable prospects for prospective investors and developers. The result of the test using one-way Analysis of Variance showed that at 0.05 degree of freedom F-ration of 13.46 is greater than the critical of 3.48 value obtain from the F-ratio Table an indication that Anambra state Government is significantly involved in residential property development.

CHAPTER ONE

1.0 INTRODUCTION

Residential property development in Nigeria often involves large outlay of capital which with the right entrepreneurial ingenuity can attract adequate return. The decision to develop residential property is often made based on the expectation of future benefit, although the benefits vary with motives (Ozili, 2017).

The decision to engage in residential property development is among the most difficult and crucial decision an investor has to make. This is so not only because of huge fund involved or long gestation period, it involves the undisputed decision geared to carry out erection of buildings, in most cases investors build having at the back of their mind the benefits they tend to gain on the long run, this benefit is the rent to be collected after the development must have been commissioned. Since capital is limited and can be invested elsewhere, the best option is the allocation of it between alternative uses to obtain an efficient use consistent with the profit maximization objective of the investor. This calls for government intervention in providing residential property developments especially for low income earners and create an enabling environment for private investors to come in (Nebu, 2013).

Basically, developing residential properties in Nigeria has often been linked with the primary goal of achieve necessary level of providing shelter for the people at lower costs especially if it’s a government project. Consequently for private developers their primary goal is to maximize profit using the best quality locations and sound property management skills.

The involvement of institutional investors or developers like the government has helped in the provision and easy allocation of the scarce capital into developing residential properties. To this end both individuals and government now simultaneously reap their desired returns on the basis of their goals or objectives (Nebu, 2013).

1.1    BACKGROUND OF THE STUDY

It is an ancestral heritage and belief that every human being must have his or her own house or family house on which to dwell therein, it is for this reason that residential property development has been a global phenomenon in Nigeria (Bello, 2016).

In recent years, residential property development has been booming so much that new technologies and innovations has experienced a rising demand to meet up with global standards in property development and state of the art. Residential properties seem to be the most common and largest type of property development in the third world countries. Hence property development has been classified into various types such as; residential properties, commercial properties, industrial properties, recreational properties, agricultural properties (Nebu, 2013).

An appraisal of development in properties will ordinarily include all of the types of properties, but this study will strictly narrow it to an appraisal of development on landed residential properties (Nebu, 2013).

Residential property was originally dominated by private developers. Moreover, in recent times, government have discovered that leaving this sector entirely to private developers will not meet the posed challenges in property market arising from increase in demand for housing conditioned by population explosion, sophistication in taste and fashion and boom in economic and business activities. All these combined have put a lot of pressure on available housing stock, hence the present accommodation crisis. Whatever may be the case, it may be noted that the government investment in residential properties have increased in Nigeria within the last two decades. In Anambra state, investment in the real estate sector is quite enormous, the situation has indeed reached a high crescendo that the rate of subscription to properties within Anambra state Housing Corporation appears to be far above the projection of the Housing Corporation (AHDC, 2020).

This calls for an urgent and comprehensive appraisal of the situation so as to clearly examine government level of participation in residential property development with regards to Anambra State Housing Development Corporation.