DYNAMICS OF PROPERTY INVESTMENT VALUATION THEORY AND PRACTICE: RELEVANCE AND POSITION IN NIGERIA
2 Department of Estate Management, University of Jos, Plateau State, Nigeria
* Corresponding author: yusuf_gambo@yahoo.com
Abstract
Purpose: The theory and practice of valuation is basically patterned after the UK practice and is evolving in Nigeria. The paper aims at examining the shift in property investment valuation theory and practice with a view to identifying the quality of valuation practice in the country.
Design/methodology/approach: Data were obtained through structured questionnaire administered to Estate Surveying and Valuation firms in Abuja, Lagos and Port Harcourt and analysed using frequency tables, simple percentages and Relative Importance Index.
Findings: The results showed how valuation practice firms are characterized by sole proprietorship ownership, and absence of specialized firms. Investment valuation in the country lags behind in the culture of best international practices by adopting valuation approaches that are inappropriate. Valuers in the country prefer the use of International Valuation Standards manual by IVSC and NIESV Valuation Standards. It was also found that about 27% of valuers do not consult any Valuation Standards in practice.
Research limitations/Implications: The study revealed that factors impeding the use of investment valuation method are absence of data bank; use of alternative methods of valuation; low capital value figure arrived at by valuers; and low rental income from property investments.
Practical implications: It is recommended that proactive steps be taken towards the use of appropriate investment valuation models and formation of bigger practice firms to meet clients' demands at national and international levels. The professional regulatory bodies should monitor valuers' practice and ensure strict compliance with the provision of International Valuation Standards.
Originality/value: The study documented the progress investment valuation underwent and the present practice in Nigeria; and also contributed to knowledge by identifying factors impeding the use of investment valuation method on income yielding properties.
Keywords
Gambo, Y. L., & Adamu, E. M. (2023). DYNAMICS OF PROPERTY INVESTMENT VALUATION THEORY AND PRACTICE: RELEVANCE AND POSITION IN NIGERIA. Journal of Contemporary Research in the Built Environment, 7(2), 89-100. https://doi.org/10.68128/jocrebe.2023.sp2qoaww
Y. L. Gambo, and E. M. Adamu, "DYNAMICS OF PROPERTY INVESTMENT VALUATION THEORY AND PRACTICE: RELEVANCE AND POSITION IN NIGERIA," Journal of Contemporary Research in the Built Environment, vol. 7, no. 2, pp. 89-100, September 2023. doi: 10.68128/jocrebe.2023.sp2qoaww
