Factors Influencing Rental and Capital Values of Residential Investment Property in Abuja, Nigeria

There are various purposes the rental or capital values of residential investment property could be sought. However, most previous studies on factors influencing value of residential investment property are expressed in a general term; not specifically indicating whether rental or capital value. This may mislead investors in making the wrong investment decision. Using aggregation and disaggregation approach, this study examined the general and specific factors determining the rental and capital values of residential investment property in Abuja, Nigeria with a view to providing information that could guide the investment decisions. With the use of a structured questionnaire, cross sectional survey was adopted to obtain the perceptual opinion from 136 estate surveying and valuation firms in the study area. Data was analyzed with descriptive statistics of Relative Important Index (RII). The findings reveal a variation in the outcome of general factors and specific factors and that in specific term, factors influencing the capital value are significantly more in quantity and rating than the ones influencing the rental value. Out of the 23 (13 for rental and 10 for capital value) general determining factors, 11 (3 for rental and 8 for capital value) are actually significant. Average number of rooms; change in maintenance cost/taxes and the neighbourhood characteristics mainly influence the rental value of residential property while cost of construction; type of structure/quality of facilities; potential of rental growth; title and size of the land; neighbourhood attributes; inflation impact; size and structural characteristics and state of supply in property market are the main factors influencing the capital value. This noted variation is an indication for property investment stakeholders to be cautious and specific in the selection of the most appropriate determining factors for their investment objective to avoid investment decision errors

Impacts of Households’ Prior Experience on Current Housing Satisfaction: A Study of Selected Estates in Lagos, Nigeria

Researchers in housing satisfaction mostly limit selection of research variables to current on-site parameters of the housing environment. Thus, variables perceived as not having explicit relationships with overall housing satisfaction are often relegated. However, users’ current satisfaction ratings are usually influenced by such relegated background variables, including user’s prior-experience in erstwhile housing environments. This paper explores the prospects of users’ housing background experience in influencing the build-up to determining current levels of satisfaction. The survey utilised structured selfadministered questionnaires on a sample of 572 households in selected estates in the study area. The retrieved 283 were edited and analysed with Statistical Package for Social Sciences (SPSS) version 19. Housing relative satisfaction indices were calculated for the respective estates first from mathematical formula and then compared with mean scores. A hypothesis was tested with Spearman’s Rank Order Correlation to establish a significant relationship between Satisfaction with Prior Housing Environment (SATPRIORHSE) and current Overall Housing Relative Satisfaction (OVERALLHRSAT). A further test with one-way ANOVA confirmed the outcome of the earlier test. The study revealed positive correlation of though, low coefficient of +0.281, between SATPRIORHSE and OVEARALLHRSAT. This was significant at the 0.01 (2-tailed) level. This analysis showed a significant relationship between the respondents’ prior housing and the recorded level of housing satisfaction in the current estates. The respondents who experienced various levels of low-satisfaction with their former housing recorded higher rates of satisfaction with current housing in the estates, than those who had better prior experiences. The research underscores the relevance of ‘prior experience’ variable in assessment of current housing satisfaction levels. When rigorous financial analysis is involved, an underplay of such variable could lead to wrong conclusions, with misapplication of research outcomes accompanied by serious financial implications. The user’s prior-experience determines the housing norms on which satisfaction is premised

COVID-19 Pandemic: The Effects and Prospects in the Construction Industry

COVID-19, social distancing, self-isolation, quarantine, furlough, palliatives, and many more emerged as the new vocabularies of the entire world, construction industry not excluded. It is precisely a decade from the last pandemic experienced by the human race. However, the most popular disease outbreak called Corona Virus Disease 2019 (COVID-19) was announced, which hit all the nations of the world within four months and was declared a pandemic in March 2020. This outbreak disrupted businesses around the globe, including built asset procurement and facility management. The United Kingdom, through the Construction Leadership Council, for instance, in responding to this unprecedented situation, published a new Site Operating Procedure (SOP). The effect of this Pandemic in these extraordinary times posed both positive and negative impacts in the Architecture, Engineering and Construction, Owner and Operator (AECOO) industry. Its effect has brought about innovative and diverse use of technology in an exemplary manner which may change the course of construction even after the extinction of coronavirus. This study explores the effects of COVID-19 on the built asset procurement and potential opportunities for the construction industry through a quantitative means. A survey was carried out on the built asset procurement professionals for the data collection. 71 questionnaires were received from Architects, Building Engineers, Civil/Structural Engineers, Electrical Engineers, Mechanical Engineers, Construction / Project Managers and Quantity Surveyors. SPSS 25 software (a social science statistical package) was used for the analysis of the data. The result reveals some challenges in the area of workflow and supply chain disruption, new policy issues, workers’ anxiety and review of COVID-19 vs Force Majeure in standard forms of the construction contract. However, opportunities evolved in the field of modern procurement planning, the necessity for virtual working and unique design considerations. This study is essential to paving the way for the development of additional contingency plans and a new working strategy in a minimised human contact situation caused by the pandemic

The Role of Service Digitalisation in Realty Business during Pandemic from the Perspective of Real Estate Agency in Klang Valley, Malaysia

COVID-19 has caused unprecedented disruption over the last few months, hitting the world with a vengeance in the middle of March. As COVID-19\u27s effects are felt worldwide, the real estate industry is also affected by the rapid spread of coronavirus affecting global real estate investment as travel, face-to-face meetings and property viewing are restricted. Hence, this caused significant disruption in the business transaction of real estate agencies, including in Malaysia. Therefore, this paper aims to understand how Service Digitalisation solution able to sustain the real estate agency business during this pandemic. This study adopted a Business Model Innovation Model as the foundation. This study selected a case study of real estate agency in Klang Valley, Malaysia and a series of interview sessions were conducted with the principle and the agents. The data were then analysed based on a thematics analysis method. Finding reveals that there are five quick actions taken by this agency in digitalising their real estate services and management process in sustaining their business. These include the in-house development of real estate agency management system and websites, the utilisation of various social media application as a marketing platform, the development of own video content which is localised to Malaysian market segment, the usage of Search Engine Optimisation (SEO) and finally the series of digital competency and capability training given to their registered real estate agent in coping the business disruption, especially during MCO period. Significantly, COVID-19 has expedited this digitalisation process, and it is proven that only the quick adapter in this real estate business will be able to survive in this new norm. Therefore we strongly urged the realty business to quickly embrace the service digitalisation to the whole business operation to remain relevant and sustainable

Urban Informality and COVID-19 Responses in Masvingo City, Zimbabwe: Questioning City Inclusivity

In many cities, urban informality is sidelined in the provision of services and development of the city. The outbreak of COVID-19 has called for myriad interventions to stop the spread in many cities. The big question in the city of Masvingo is how urban informality has been included in these interventions. COVID-19 has been on the increase since it was ever recorded in the city of Masvingo. As at end of August 2020, over 200 cases of COVID-19 have been recorded and pointers also show that cases are on the increase. Many people have been deprived of their livelihoods in the city due to the outbreak of COVID-19, thereby exposing people to vulnerability due to lack of livelihoods. The outbreak of COVID-19 has also resulted in closure of countless economic activities in the city, thereby depriving people from their sources of livelihoods. The most affected by the closure of economic activities are the informal traders. The outbreak of COVID-19 pandemic has called for copious interventions to try and stop the spread of the disease. The study examined the inclusivity of COVID-19 interventions in the city of Masvingo to see how they include other disadvantaged groups such as the urban informality. The informal sector in the city of Masvingo is not included in the city’s COVID-19 response strategies. The city is mainly focusing on the formal sector in their response strategies, thereby leaving the informal sector out and exposing them to elevated risk of contracting the COVID-19 disease. This research examined the inclusivity of the COVID-19 interventions in the city of Masvingo, with special reference to the people in the informal sector. The informal sector, even though they live in cities, they are usually regarded as people living in the urban periphery because they are not included in the city’s development agenda and service delivery system. The research applied a qualitative methodology where in-depth interviews and field observations were used to collect data. Interviews were done with city authorities and people in the informal sector. The research showed that the interventions taken to fight the outbreak of the COVID-19 have not benefited the people in the informal sector but only the formal sector. The informal sector has been sidelined, showing a clear exclusionary urban policy. Their livelihoods were destroyed in the guise of preventing the spread of the COVID-19 pandemic. However, such destructions were not done in the formal sector which again apparently shows exclusive urban policy. The research therefore calls for a more holistic approach in the fight against COVID-19 disease for the inclusive of the city and the betterment of life for all people in the city

Beyond Recovery? Downturns, Implications and Prospects of COVID-19 Pandemic to Real Estate Development in Zimbabwe

Real estate development plays a pivotal role in the growth of macro economies worldwide. Until recently there has been little, if any, concern over the impact of public health emergencies to real estate development process let alone recoupling mechanisms for Zimbabwe’s real estate developers. Many changes have occurred to real estate development amid the ongoing COVID-19 pandemic and economic instability that has impacted the already struggling real estate development sector in Zimbabwe. Thus, this paper aims to examine the implications of COVID-19 pandemic to real estate development and its prospects for recovery in Zimbabwe. The paper focuses on the implications of COVID-19 to the four forms of real estate development namely: new developments, repurposing, refurbishment, and redevelopment. The study employed a desktop study and survey of selected real estate developers as well as content analysis methodology. Evidence in Zimbabwe shows that many new developments have almost stopped and some will hold back for an indefinite time. The real estate development industry is largely based on revenue accrued from the real estate projects’ proceeds and funding from banks. Thus, the study seeks to answer questions of the nature: will the financial institutions continue to offer financial help to real estate developers? What will be the legal wrangles of missing the projects\u27 delivery dates by developers? While the key players in the real estate development process have seized the pandemic as an opportunity to demolish and refurbish the buildings, some real estate developers are halting projects citing revenue challenges. The paper indicates how the current COVID-19 pandemic may affect the real estate developers’ future “appetite” and determine the future of real estate development. The paper, therefore, builds the basis for future real estate development policies and indicates the need for reforms to shield the sector from pandemic shocks

Impacts and Risk Management of COVID-19 Pandemic on Real Estate Supply Chain

Industry experts internationally have raised concerns regarding the significant risk posed to the real estate sector by the unprecedented global pandemic of Covid-19. The influence of Covid-19 has been swift, and with emerging wide-ranging consequences. The stay-at-home-policy has stagnated real estate and other economic activities. Many lenders, buyers and estate agents are evaluating the threats and opportunities in their operations. Developers face stoppages resulting from the impact and inherent risks of the stay-at-home policies on the built environment, and real estate chain. Return on investments initiated, but not completed due to the pandemic negative effect has resulted in a financial crisis. Similarly, there are fears that income streams, such as rental incomes, and mortgage payments, which are already being affected negatively in the short-term may worsen in the long-term due to economic recession. The purpose of the study, therefore, is to identify any COVID-19 pandemic impact, its mitigation for the tenant, and across the supply chain within the real estate sector in the United Kingdom. The study is based on a qualitative descriptive research design. The required data has been collected mainly through an extensive review of the available secondary sources. Occupiers’ Sentiment Index and past recessionary financial performance were used to provide a wide-ranging insight into crisis effects on the macroeconomy of the property market. Consequently, two procedural approaches are utilised; firstly, the economic recovery scenario V, U, W and L shapes, are analysed to determine the potential recovery pattern of supply chains across the real estate sector. Secondly, the use of a legal context to mitigate the pandemic risk across the sector. The findings reveal an emerging dynamic trend, rooted in contract clause revamping, as suggestive of a mitigation approach by the industry. The significance of the study provides a robust platform on which a long-term response to any future unprecedented pandemic within the real estate-built environment can be delivered