A CRITICAL ANALYSIS OF THE EFFECTS OF ECONOMIC VARIATIONS ON REAL PROPERTY MANAGEMENT: A CASE STUDY OF ONITSHA PROPERTY MARKET
ABSTRACT The real property market constitutes an integral part of the general business economy. The two sectors are so closely related that trends in the business economy may come from or result in changes in the real property market. This work is an attempt to gain an insight into the nature and conditions of the property market under the prevailing economic changes in Nigeria. The resulting problems which have contributed greatly to making real property management a difficult task are highlighted in this work. Hence, the purpose of this study was to critically analyze the effects of economic variations on real property management using Onitsha property market as a case study. The study was able to discover the major causes of economic problems in Nigeria and possible solutions were proffered. Estate Surveyors and Valuers were advised on how to deal with some of the effects of economic variation on Real Property Management. The study also sought to enlighten the public on the importance of the roles of Estate Surveyors and Valuers in the real estate sector of the economy. Recommendations were made to Estate Surveyors towards Â improving Â Real Â PropertyÂ Management Â practice Â in Â Nigeria. Â Data Â on Â which analysis are based were mainly from administration of questionnaires, oral interviews, personal observations and collection of relevant information from textbooks, journals and papers. The population of the study was fifty (50) practicing Estate Surveyors in Onitsha. Out of these Estate Surveyors, forty (40) of them were drawn through stratified random sampling technique. Forty (40) questionnaires were administered; out of which thirty- eight (38) were used for the analyses. Chi-square (x2) test statistics was used to test the hypothesis of the study, which states that there is significant negative effect of Economic Variations on Real Property Management in Onitsha. The result of the study revealed that economic variations in Nigeria have adverse effects on real property management in Onitsha. The test statistics showed that at 0.05 level of significance (X2 cal.=44.2500, X2 tab.=5.991), there was a significant negative effect of economic changes on real property management in Onitsha. The study revealed that the major cause of economic variations in Nigeria was over-dependence on Petroleum and its allied products at the expense of Agriculture Â andÂ Â otherÂ Â sectorsÂ Â of Â the Â economy.Â Â Inadequate Â planning Â of Â various government recovery policies worsened the situation in the market. These policies had adverse effects on per capita income of the people. There was no co-ordination in pricing system, therefore, the prices of goods and services increased discriminately. The deregulation of interest rate made borrowing for investment purposes very costly. Incessant political, social and religious hostilities disrupted Nigerian economy. Sometimes, problems in the global economy caused economic changes in Nigeria. The study identified the effects of these economic problems on Real Property Management as tedious rent revisions, under estimation of maintenance costs, higher incidence of rent defaults, stagnant rents, delayed maintenance, unrealistic forecasting etc. To stabilize Nigerian economy, more attention should be given to Agriculture and other sectors. The government should come up with measures to solve incessant political, ethnic and religious crises which discouraged foreign investors. The principles of checks and balances should be fully implemented among the three arms of government to check the problem of mismanagement of public funds by those in leadership positions. Estate Surveyors and Valuers operating in a variable economy should analyze and recognize trends in the market to enable them manage economic fluctuations and crises.
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