The Property Market Maturity Framework and its Application to a Developing Country: The Case of Nigeria

Akinbogun, Solomon Pelumi; Jones, Colin; Dunse, Neil

doi:10.1080/10835547.2014.12090383

Cited by 18 publications

(19 citation statements)

References 11 publications

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“…Findings from the study revealed that except for the criterion on market openness, the markets failed to achieve all the other criteria identified by Keogh and D'Arcy; thus, its classification as immature. This finding agrees with studies conducted by Thontteh (2013) and Akinbogun (2014).…”

Section: The Literature On Property Market Maturitysupporting

confidence: 94%

“…Consequently, we have an incomplete picture of the overall market dynamics of such real estate markets. Furthermore, the earlier studies are geographically localised and mainly restricted to the Lagos, Abuja, Port-Harcourt, Akure and Gombe sub-markets (Akinbogun et al, 2014;Dabara, 2014;Abere PM 40,2 et al, 2020;Ekemode, 2021). This study will add to the body of knowledge in this field by extending the sub-markets studies in Nigeria to include the Ibadan market because of its importance in the Nigerian real estate market space and its significance in Africa (being the second-largest city in Africa).…”

Section: Performance Of Real Estate Investments 169mentioning

confidence: 99%

“…Vast literature abounds on studies that considered real estate investments using the aforementioned yardsticks piecemeal. For example, studies that looked at the property market maturity of property sub-markets Performance of real estate investments include Keogh and D'Arcy (1994), Dugeri (2011), Thontteh (2013 and Akinbogun (2014), among others. Studies on real estate return profile include Levin and Pryce (2009), Akinsomi et al (2016) and Curto and Fregonara (2019).…”

Section: Literature Reviewmentioning

confidence: 99%

“…There is a need for the regulatory bodies to devise means of identifying and checking the excesses of these quacks, which hampers the market's maturity status. Furthermore, the thinly-spread of real estate professionals in the market also contributes to its lack of maturity (Akinbogun et al, 2014).…”

Section: Performance Of Real Estate Investmentsmentioning

confidence: 99%

“…(Interviewee number 5, March 2020). It was asserted that lack of market openness/ responsiveness and insufficient market information contributed to hindering the market from evolving to its matured stage (Akinbogun et al, 2014).…”

Section: Performance Of Real Estate Investmentsmentioning

confidence: 99%

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Performance of commercial and residential real estate investments in Ibadan property market, Nigeria

Ojo

Dabara

Ajayi

2021

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PurposeThis study examined the performance of commercial and residential real estate investments in the Ibadan property market to provide information for investment decisions.Design/methodology/approachThe study used a mixed research design (qualitative and quantitative). Data were obtained employing in-depth interviews with randomly selected sixteen estate surveyors and valuers practising in the Ibadan property market. Data for the study were analysed using the phenomenological thematic content analysis. Similarly, data on rental and capital values were translated to income, capital and holding period returns. The Kwiatkowski–Phillips–Schmidt–Shin (KPSS) and Philip–Perron (PP) models were used for unit root analysis. Ordinary least square (OLS) regression model was used to test for inflation-hedging characteristics, and the Granger causality tests were carried out to analyse the causal relationship between the variables.FindingsThe study revealed that the Ibadan property market is still immature. For the return components, the study found that the Ibadan property market provided mean holding period returns of 10.82%, 14.31 and 8.29% for office, shop and residential property types, respectively. The study also revealed that the selected property types are perverse hedges against inflation. Similarly, the study showed a unidirectional causal relationship between inflation and returns on the selected property types.Practical implicationsResults of this study revealed the peculiar nature of the Ibadan property market; findings from the survey can be used as a guide for investment decisions by foreign and domestic investors. Shrewd investors can take advantage of the high returns provided by the real estate assets in the Ibadan property market (by investing in the property market) to obtain high returns and expand their investment portfolio.Originality/valueThis study is the first to examine, in an eclectic and comparative context, the performance of commercial and residential properties in the Ibadan property market from the perspective of its market maturity level, returns profile, as well as its inflation-hedging characteristics. Findings from the study will equip both individual and institutional investors with valuable information for investment decisions.

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Section: The Literature On Property Market Maturitysupporting

confidence: 94%

Section: Performance Of Real Estate Investments 169mentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Performance Of Real Estate Investmentsmentioning

confidence: 99%

Section: Performance Of Real Estate Investmentsmentioning

confidence: 99%

See 3 more Smart Citations

Performance of commercial and residential real estate investments in Ibadan property market, Nigeria

Ojo

Dabara

Ajayi

2021

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Externalities and planning failure in the housing market of an African city

Akinbogun

Jones

2018

IJHMA

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Purpose Planning is logically applied to address negative externalities, but an alternative is financial compensation to the victim of negative spillover effects. This paper aims to examine the rent discount required to compensate tenants in an African city for a negative externality of the location of a grave within the bounds of their home. It also assesses the suitability of this as a remedy. Design/methodology/approach This study adopts a discrete choice experiment to analyse tenants’ acceptability of the level of rent discounts when a grave is imposed on their home. Findings The study estimates that tenants in the Nigerian city of Akure require between 15 per cent and 20 per cent reduction in the rental value of a residential property to compensate for the imposition of a grave. However, many households would prefer to move elsewhere rather than negotiate a discount. Others, especially those on low incomes, were likely to suffer the loss of welfare without a rent discount. The study concludes that a compensatory approach is not an acceptable solution for welfare issues caused by the planning failure. Research limitations/implications The investigation is based on a hypothetical choice experiment. However, the results obtained are subject to a series of validation processes. Practical implications As reductions in the rent to compensate for the effect of a grave in a private home are unlikely in a market with excess demand, it is a clear argument for effective planning and environmental law. Originality/value This study is the first to assess the impact of negative externalities on the housing market of an African city.

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Achieving property valuation accuracy in developing countries: the implication of data source

Abidoye

Chan

2018

IJHMA

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Purpose The demand for accurate property value estimation by valuation report end users has led to a shift towards advanced property valuation modelling techniques in some property markets and these require a sizeable number of data set to function. In a situation where there is a lack of a centralised transaction data bank, scholars and practitioners usually collect data from different sources for analysis, which could affect the accuracy of property valuation estimates. This study aims to establish the suitability of different data sources that are reliable for estimating accurate property values. Design/methodology/approach This study adopts the Lagos metropolis property market, Nigeria, as the study area. Transaction data of residential properties are collected from two sources, i.e. from real estate firms (selling price) and listing prices from an online real estate company. A portion of the collected data is fitted into the artificial neural network (ANN) model, which is used to predict the remaining property prices. The holdout sample data are predicted with the developed ANN models. Thereafter, the predicted prices and the actual prices are compared so as to establish which data set generates the most accurate property valuation estimates. Findings It is found that the listing data (listing prices) produced an encouraging mean absolute error (MAE), root mean square error (RMSE) and mean absolute percentage error (MAPE) values compared with the firms’ data (selling prices). An MAPE value of 26.93 and 29.96 per cent was generated from the listing and firms’ data, respectively. A larger proportion of the predicted listing prices had property valuation error of margin that is within the industry acceptable standard of between ±0 and 10 per cent, compared with the predicted selling prices. Also, a higher valuation accuracy was recorded in properties with lower values, compared with expensive properties. Practical implications The opaqueness in real estate transactions consummated in developing nations could be attributed to why selling prices (data) could not produce more accurate valuation estimates in this study than listing prices. Despite the encouraging results produced using listing prices, there is still an urgent need to maintain a robust and quality property data bank in developing nations, as obtainable in most developed nations, so as to achieve a sustainable global property valuation practice. Originality/value This study does not investigate the relationship between listing prices and selling prices, which has been conducted in previous studies, but examines their suitability to improve property valuation accuracy in an emerging property market. The findings of this study would be useful in property markets where property transaction data bank is not available.

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The Property Market Maturity Framework and its Application to a Developing Country: The Case of Nigeria

Cited by 18 publications

References 11 publications

Performance of commercial and residential real estate investments in Ibadan property market, Nigeria

Performance of commercial and residential real estate investments in Ibadan property market, Nigeria

Externalities and planning failure in the housing market of an African city

Achieving property valuation accuracy in developing countries: the implication of data source

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