COMPARATIVE ANALYSIS ON THE IMPACT OF INFRASTRUCTURAL FACILITIES ON THE VALUE OF PROPERTIES

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ABSTRACT

Infrastructural facilities are these basic amenities and services which are essential in the society for economic and social development. These infrastructural facilities include; roads drainage, electricity, pipe borne water, e.t.c.

            There has been provision of infrastructural facilities in some areas in Kwara state and some areas are also lacking such adequate infrastructural facilities e.g. Fate area is provided with good and adequate infrastructural facilities, while Itakudimoh area is lacking such adequate facilities.

            This research work will therefore examine the value of properties in both areas for certain years and also examine the impact of infrastructural facilities on the property value by comparing and analyzing the rental and capital value of the properties in the two area of study.






TABLE OF CONTENTS

·        Title page                                                                                                      i

·        Certification                                                                                                 ii 

·        Dedication                                                                                                    iii

·        Acknowledgement                                                                                    iv 

·        Table of contents                                                                                       v-vii

·        Synopsis                                                                                                        viii


CHAPTER 1

1.0.     Introduction

1.1.     Statement of problem

1.2.     Aim and objectives

1.3.     Significance of study

1.4.     Scope of study

1.5.     Limitation of study

                                                        

CHAPTER 2 

2.0.     Literature review

2.1.     Types of infrastructure

2.2.     Management of infrastructure

2.3.     Who manages infrastructure

2.4.     What is value?

2.5.     Availability of infrastructural facilities

 

CHAPTER 3

3.0.     Research Methodology

3.1.     Method of data collection

3.2.     Target population

3.3.     Sample frame

3.4.     Sample size

3.5.     Sampling technique

3.6.     Data instruments                                                                                                                                                    

3.7.     Data analysis       

                                                                                                               

CHAPTER FOUR

4.0      Data Presentation and Analysis

4.1      Introduction


CHAPTER FIVE

5.0      Summary of findings, recommendation and conclusion

5.1      Summary of Findings

5.2      Recommendation

5.3      Conclusion

Bibliography

 

 

 

 

 

 

 


                                                                     CHAPTER ONE

1.0   INTRODUCTION

The provision of infrastructural facilities In Nigeria is not adequate when compared with that of advanced Countries. It is quite believed that the development of any City or Nation cannot be considered in isolation of infrastructural facilities available in the Country.

Infrastructural facilities were defined according to Donald (1974) as those basic amenities and services essential to both rural and urban societies for economic and social development. These amenities constitute the main fabric of what maybe called urban physical system linked with the property value.

The word “Infrastructure” according to the Webster’s New World Dictionary is defined as a sub-structure or underlying foundation especially the basic installation and facilities on which the continuance and growth of a community, state, country depend on. Such as roads, schools, power plants, transportation, communication system etc.

The availability of infrastructural facilities can enhance more developments and this will directly increase the standard of living of the people residing in such areas. The presence of infrastructural facilities have a great impact  on property value, population growth, and also increase investment of commercial venture which could be a source of generating revenue for the local government. Therefore it has been an area of focus especially to Estate Surveyors and Valuers who are usually responsible for information on property and also guide and advice their clients.

This research work therefore examines the various infrastructural facilities which can make real estate to be an alternative means to potential investors. The success in development or purchase of a property by a potential developer depends on the perfect interpretation in terms of their present and future effects on the value and returns to such developer or purchaser.


1.1     STATEMENT OF PROBLEM/ JUSTIFICATION

            The decision to undertake this research work stems from numerous problems associated with the value of residential properties.

            The infrastructural facilities provided by government are limited to some areas or part of the state or country, which is adversely affecting the worth of properties in the areas where adequate infrastructural facilities is lacking.

            Again, the problem associated with properties has been traced to lack of management and infrastructural facilities, which is causing deterioration, functional and economic obsolescence. The problems will be reflected in the case studies and possible solution will be prescribed.


1.2     AIM

            The aim of this research work is to analyze the impact of infrastructural facilities on the value of properties in Itakudimoh and Fate area. 

1.2.1   OBJECTIVES

1    To identify the infrastructural facilities and residential properties in the study area.

2    To examine the condition of infrastructural facilities in the study area.

3    To examine the values of properties in the study area for the past 10years.

4    To know the impact of the infrastructural facilities and residential properties in the study area.

5    To examine the problem encountered on infrastructural facilities so as to recommend possible solutions for them.


1.3   SIGNIFICANCE OF STUDY

          The significance of the study are as follows:

1    To know the importance of infrastructural facilities on property value.

2    Helps to know the trends of properties i.e. lower range, middle range or higher range.

3    To enlighten investors and also to encourage them to invest on real estate business.

4    The study will also be useful for both students and governments to know how infrastructural facilities affect the value of properties.


1.4   SCOPE OF STUDY

            The study is being limited to some areas in Fate and Itakudimoh i.e. from kwara shopping mall to area in fate and after pakata secondary school to the central mosque in itakudimoh. Where properties are selected at random for the purpose of this research work and a comparative analysis is carried out on the impact of infrastructural facilities on the value of properties in both areas. 


1.5   LIMITATIONS OF THE STUDY

            In carrying out this study, it is not exempted from the normal difficulties encountered in this kind of research work these include:

1    There are difficulties in the administration and collection of information, where some people refuse to disclose information or even collect the questionnaire.

2    Lack of funds and financial constraints is also a problem encountered on transportation cost, typing of questionnaires and other factors like nature, economic hardship.

3    Some estate firms also refused to disclose some information on properties in the study area which they considered to be secret to them.

4    The time limit with which to undertake this research work is another limitation, because some of the respondent will delay information to be supplied.


1.6   STUDY AREA

            HISTORICAL BACKGROUND OF ILORIN EMIRATE

            Ilorin is the present capital of capital Kwara state in the north central region of the federal republic of Nigeria. It is a pre-dominantly Islamic city with people of diverse culture who have come together to live as one in peace and harmony. The entire Ilorin community comprises of five local government areas namely, Ilorin west, Ilorin south, Ilorin east, Asa and more local government.

            Ilorin has a population of about 814,192 people and the geographical co-ordinations of Ilorin are latitude of 8.5 degrees north, longitude of 4.55 degrees east and elevation of 290metres.

            Ilorin community was discovered in the 18th century by the Duo of Afonja, Ara-onakakanfo, a Yoruba warlord and Sheik Alimi an Islamic scholar. These heroes arrives Ilorin at different times and different circumstances.

            Sheik Alimi was an Islamic missionary propagating Islam and its teaching across the land. He was temporarily settled at Kuwo village very close to Ilorin where he built mosque and houses. He continued to explore other territories to spread his belief and settle down permanently.

            During his course, he discovered a river flow through villages and he sought to know the origin, It was river Asabuh known as Asa River today in Ilorin. He later settled down at a homlet within the vicinity of the river which was occupied by Fulanis. The kinsman was known as Gaa-Fulani and was headed by Olufadi. Other hamlets around was Idiape, Okesuna, Gambari, which also have their heads.

            Sheik Alimi and Afonja fought many wars together internally and externally which later made them suspicious of each other and eventually leads to confrontation, where Sheik Alimi defeated Afonja. After the defeat Sheik Alimi extended hand of friendship to other hamlets nearby for a larger community with a common belief, which he headed. The community is known today as “ILORIN”. The city was named after the major meeting point of the people as a testimony of the unity of the people.

Source: www.ilorin.org

 

1.7    DEFINITION OF TERMS

1.     INFRASTRUCTURAL FACILITIES: Donald (1971) defined infrastructure as the basic facilities and services essential to both rural and urban society and to economic and social developments. These are the essential physical structure and facilities that are developed, acquired or provided by the government to the public.

The basic structures, services and facilities necessary for an area or locality to perform efficiently is known as infrastructure, Jeffery (2009) these includes roads, streets, bridges, transportations, health services, education, water supply, power supply, telecommunication, waste disposal e.t.c.

2.     VALUE: The word “value” means different thing to different people and different professions. The Oxford Advanced Learner English Dictionary defines value as the worth of something in terms of money or of the goods for which it can be exchanged or quality of being useful

Akogun (2006) with respect to real estate defines value as the worth of an interest in land and building or claims on chattel assessed by appropriate method of valuation.

3.  ECONMIC INFRASTRUCTURE:    Business dictionary explains economic infrastructure as an internal facilities of a country that makes business activities possible such as communication, transportation, distribution networks, financial institution, market and energy supply system

4.  SOCIAL INFRASTRUCTURE:        Schubeler (1996) buttressed that social infrastructure are those facilities which helps individual of a society to learn and accommodate other social activities or services e.g. health, education, recreation and cultural facilities.  



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