Professional Documents
Culture Documents
1.1 INTRODUCTION
Rent provides the basis of value for landed property and the
(3) Income
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(4) Physical characteristics
office blocks.
to 2009.
2
This dissertation will look into the commercial property market
and analyse the factors affecting it and the trend of this type of
metropolis.
(10) years.
3
metropolis and is the nerve centre or hub of business activities
study is 2000-2009.
Due to the fact that Lagos can not be covered at the stretch,
Metropolis.
unpublished materials.
4
Commercial properties especially in Lagos metropolis have
recent time.
term used in the wording of this study. This is necessary for the
sake of clarity.
1. TREND:
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2. PROPERTY
3. REAL PROPERTY
purpose property.
grouped as follows;
(i) Shops
(iii) Stalls
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One features common to all the aforementioned classes of
which, in the long run will determined the rent a tenant can
(5) VALUES
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c. That values will remain static during such period;
market, and
specific interest.
6. RENT
year.
7. PROPERTY MARKET
1.8 LIMITATION
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In the course of this research work, various limitations were
they include:
- Shortage of time
- Inadequate finance
- Weather constraint
CHAPTER TWO
2.1 INTRODUCTION
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know authors in this area of study in this chapter. Furthermore,
value and the market price or market value will always be the
difference of opinion.
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when condition are not stable more serious difference may
effect.
Unstable times bring into focus the fact that in any market at
any time there are many buyers and sellers, each of whom will
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Value implies capacity to satisfy wants thus, there exists as
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all prospective purchaser. Objective value is the same as the
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the property, both of them adequately informed about the
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building qualities, and some other factor which are necessary
These leads to the thesis that, prices are the best indicators of
value.
property.
Where;
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CV= capital value of property
perceptual nature.
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arriving at an appropriate capitalization rate exists but the
risky and unattractive the investment is, and the lower the
rate, the less risky and more attractive the investment is. Since
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The utility theory of value states that, “Value of any
returns from the property. The owner may however have some
Thus the utility scale varies with individuals and utility cannot
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However, the utility theory of value is not an entirely useless or
present use. This current use value may change over time
property.
20
When establishing the potential use value of a property,
place, what kind of development it will be, what costs and yield
value for the potential use. These are mere estimates because
These new values reflect the new use of the landed property.
before development.
The concept of use value and potential sue values are of great
value.
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2.4.6 RATEABLE VALUE
pays all the usual rate and taxes, and the landlord takes cares
usual tenants rates and taxes, and minus the average annual
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properties are exempted from property rate and some property
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The builder or quantity surveyors will carryout estimation of
stipulated time.
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appreciate for obtaining such a loan. A valuation is carried out
property to the owner for the use of land or of his land and
building.
at less than their rental valuer. Some are let at more than their
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The difference between actual rent passing in a property and
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ii. Property accessibility (Thorncroft, 1965) and
CHARACTERISTIC
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This can be referred to as the character of a particular locality.
proposed property.
GOVERNMENT POLICIES
taxes.
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DEMAND AND SUPPLY
heading;
connection therewith.
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intensity, values will tend to fall. Increase in population within a
locality may occur in various ways. The birth rate may exceed
the locality.
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(IV) RENT AS A PROPORTION OF INCOME
meet his expenses, from the gross he has left, he will require
has to provide, the balance that is left is the margin that the
and fast rule can be laid down as to the proportion which the
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this estimation of the future trend of receipts and expenses
than one trade or for more than one purpose, and there will be
yielding the largest margin out of profit for premises for where
will tend to put to of this rule may be affected by the fact that
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Supply factors: It ahs already been stated that land differs
may even cease, and build will not recommence until the
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period it might be modified by the non-replacement of obsolete
“rent” and if rent does not step up with building costs, then the
down.
LOCATION
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important feature of location than in a seaside resort where
access to the sea may count for more. The location of property
follows;
ACCESSIBILITY
35
In finding the rental value of a lndeed property, the value is
not centrally located, it will command less value than the same
between two place . it does not only affect the real cost
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demarcation, any trend or development that is likely to break
1. GROUND RENT
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It can be referred to as payment made by a lessee to a lessor
for the use of bare land usually for a long period of time. Here
the lessee erects building on the land hence the ground rent is
2. CONTRACT RENT
3. ECONOMIC RENT
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4. RACK RENT
This is the current open market letting value of the amount for
also. The annual equivalent (AG) of any capital sums that the
at fair rate percent, but also that an annual sinking find ought
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6. PROFIT RENT
rental value and the head or rent reserved under a lease of the
7. QUASI RENT
8. EXCLUSIVE RENT
9. EXCLUSIVE RENT
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10. INCLUSIVE RENT
rent.
land.
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RESIDENTIAL PROPERTIES
marionettes Houses.
COMMERCIAL PROPERTIES
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Commercial properties have to be situated is a central
metropolis.
INDUSTRIAL PROPERTIES
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These are properties that are acquired for special
AGRICULTURAL PROPERTIES
CLASSIFICATION
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The term “property market” does not connote a physical
buildings.
PROPERTY MARKET
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Value evolves from and changes with the degree of utility
MARKET
(i). Heterogeneity
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Every property occupies a unique location, and there are
opportunity.
(II). INVISIBILITY
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virtually fixed and the mix of various land uses is difficult to
slumps.
title, the need for a formal contract, and the frequent and
transfer.
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These includes:
defective premises.
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secret. This leads to lack of information about transaction
(IX) PERPETUITY
man.
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An interest in property may be defined as a “bundle of rights”
mention a few .
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condition and with the applicable physical economic, and legal
Not all who would love to purchase land and rich enough to
buy a plot.
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particular district and convenience of situation and access for
SHOPS
corner pieces.
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goods to be sold, from the gross profit remaining will fall to be
reasonable rents.
security of income.
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iv. Terms of lease- the shop property may be let on
1993)
i. Proximity to customers
OFFICES
but excludes premises which are sued for the display or sale of
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goods. There are purpose bulk offices and converted dwelling
of less importance.
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advertisement of floor space to let in office
factors include,
i. Similar surroundings.
ii. Ease of access from other parts of town
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2.10.1 INFRASTRUCTURAL FACILITIES REQUIREMENT BY
COMMERICAL PROPERTIES
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CHAPTER THREE
3.1 INTRODUCTION
2000-2009.
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considered to be a mere assertion and that this research study
study.
fixed response type, the open and type and rating scale
question.
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allows every respondent to provide
COLLECTION
serve the time of both parties i.e. the researcher and the
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most especially the respondent, where he is a very busy
person.
3.3.1PRIMARY DATA
DIRECT INTERVIEW
over years.
PERSONAL OBSERVATION
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Personal observation were also made on some street within the
TABLES
2009 respectively.
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presentation and analysis is in tabular form expressed in
ranges.
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property type in Lagos metropolis as well as chosen firms of
information.
For the purpose of this project, the selected study area which
i. Awolowo Way,
i. Broad Street
iv. Bamgbose
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Modern day Lagos is now a state situated in south-western
north and east by Ogun State with the Atlantic ocean providing
down the African coast and whose own name is derived from
It was a major centre of the slave trade until 1851, when the
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The reminder of modern-day Nigeria was seized in 1886.
annum between 1901 and 1950 but its growth rate per annum
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administrative capital till December 1991, when the seat of the
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metropolitan Lagos has overburdened its housing facilities,
CHAPTER FOUR
4.1 INTRODUCTION
questionnaire.
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4.2 DISTRIBUTION OF QUESTIONNAIRE
Respondent No of No of No of %
s questionnaire questionnair
administrativ e retrieved questionnair responden
e
e retrieved t
Occupier on 35 30 5 35%
Land Island
Occupier on 35 28 7 33%
Ikeja
Estate firm 30 20 10 24%
Total 100 78
Source: Field survey 2010
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questionnaire which represent 92% which appears
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TABLE 4.2
=N=(per/m2)
Areas 2000 2001 2002 2003 2004 2005 2006 2007 2008
Broad 5500- 5500- 5500- 7000- 7000- 10,000 10,000 20,000 20,000 20,000
7000 7000 7000 15000 15000 18,000 18,000 25,000 25,000 25,000
Marina 5500- 5500- 6,500 8,500 8,500 12,000 12,000 18,000 18,000 18,000
7000 7000 9,000 10,000 10,000 15,000 15,000 20,000 20,000 20,000
Ofin 2500 3,500 3,500 5000 6,000 9000 10,000 15,000 15,000 15,000
4,000 5000 5,000 7,000 7,500 12,000 15,000 18,000 18,000 18,000
Nnamd 2,500 4,500 4,500 7,000 7,000 10,000 10,000 15,000 16,000 16,000
i 4,500 6,000 6,000 10,000 10,000 12,000 12,000 18,000 18,500 18,500
Azikwe
Source: Field Survey 2010
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The trend of commercial (office) property value in Lagos
trend was the same with marina, the rental rose in 2003
and also reached its peak in 2007and his been the same
since then. Ofin has a different trend with less price but
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Table 4.3
The trend In rental value of commercial properties (Shop) in Lagos Island between 2000-2009
and its is measured by annum.
Trend in commercial property (shop) rental value Lagos metropolis
Areas 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Idumota 120,000 120,000 140,000 140,000 140,000 150,000 150,000 180,000 250,000 250,000
Azikwe 90,000 90,000 120,000 120,000 160,000 170,000 170,000 250,000 450,000 450,000
Moloney 30,000 30,000 50,000 50,000 60,000 60,000 75,000 75,000 100,000 100,000
50,000 50,000 70,000 70,000 80,000 80,000 110,000 110,000 150,000 150,000
Lewis 35,000 35,000 50,000 50,000 55,000 55,000 80,000 80,000 95,000 95,000
55,000 55,000 70,000 70,000 80,000 80,000 100,000 100,000 150,000 150,000
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This category of commercial property is not common on
built high rise office structures but presently the few available
price stability.
(IKEJA)
in per.
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(Table 4.4)
Trend in rental values of commercial properties (Office) in Lagos metropolis in Ikeja
=N= (per/m2)
Areas 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Awolowo way 1400 1400 1800 1800 1800 2600 3300 3300 3500 5000
1600 1600 2000 2200 2200 3000 3500 3500 4500 6000
Allen Avenue 6500 6500 8500 85,000 85,000 9500 9500 13000 13,500 14,00
7500 7500 10,000 10,000 10,000 11,500 11,500 15000 15,000 16,000
Toyin Street 4,50 4500 5500 55000 6000 6000 7500 7500 10,000 10,000
5500
Oba Akran 4000 4000 65000 6500 7000 7000 7500 7500 10,080 10,000
6000 6000 7500 7500 8000 8000 9500 9500 13,000 13,000
Source: Field Survey 2010
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From the above table Awolowo way record an increase in 2003
years since the beginning of the decade and also gotten to its
peak in 2009.
but later increased in 2006 till it get to its peak in 2008. Oba
Akran also has the same trend along with Toyin Street with
little or no difference.
Table 4.5 show the trend in rental values of shops in Ikeja and it
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Table 4.5
Trend in a rental value of commercial properties (shops) in ikeja =N= per annum
Areas 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Awolow 45,000 45,000 50,000 50,000 65,000 65,000 75,000 75,000 110,00 110,00
0 0 150,00 150,00
0 0
Allen 140,00 140,00 150,00 150,00 220,00 220,00 250,00 250,00 350,00 350,00
Avenue 0 0 0 0 0 0 0 0 0 0
160,00 160,00 200,00 200,00 280,00 280,00 350,00 350,00 500,00 500,00
0 0 0 0 0 0 0 0 0 0
Toyin 45,000 55,000 70,000 90,000 100,00 100,00 140,00 140,00 220,00 220,00
0 0 0 0 0 0
Oba 75,000 75,000 75,000 95,000 95,000 100,00 100,00 120,00 140,00 140,00
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0 0 130,00 130,00 160,00 200,00 200,00
0 0 0 0 0
Source: Field Survey 2010
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Trend in Awolowo way record an increased in 2004 and it was
stable in 2005 but later reached its peak in 2008 moreover, value
Allen Avenue has been on the increase since the beginning of the
Toyin street has a similar trend with Awolowo way only at the
beginning of the decade but the rate change in 2002 till it gets to
Oba Akran has a different trend, its value was constant in 2000,
2001 and 2002 but later rise in 2003 and the increased did not
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4.4 ANALYSIS OF THE INFLATION RATE TO RENTAL
METROPOLIS
cost.
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moving out of the high valued accommodation to lower
stated earlier, the demand for them will reduce and at the
GENERAL OBSERVATION
DEVELOPMENT
rise structures.
PLANNING
and defaults.
CONCENTRATIONS
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The researchers observed that high valued commercial
CHAPTER FIVE
CONCLUSION
5.1 INTRODUCTION
research objective.
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.Most of the development are in the nature of
high.
rise again
5.3 RECOMMENDATIONS
evaluated comprehensively.
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2. Office space, which is above 1000 m2, should be designed
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5.4 CONCLUSION
property market, when rent are low, more people can afford to
rent accommodation but when rents are high, and people find
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BIBLOGRAPHY
Asika. N. (1991) Research Methodology in the Behavioural Sciences Nigeria,
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Associates)
Estates
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Management.
Management.
87
Temisaren R.E (1998) Problems of Marketing Uncompleted Commercial
Publications)
Gazette Ltd).
Publications Ltd).
88