Title: AN ASSESSMENT OF THE APPROPRIATENESS OF THE INVESTMENT
METHOD OF VALUATION FOR RESIDENTIAL PROPERTIES IN
LAGOS, NIGERIA
Authors: Stanley Chika Nwaogu
, Esther .I. Oladejo
and Charles .C. Egolum
|| ||
Stanley Chika Nwaogu1
, Esther .I. Oladejo2
and Charles .C. Egolum3 1. Department of Estate Management, University of Nigeria, Enugu Campus, Enugu, Nigeria
2,3. Department of Estate Management, Nnamdi Azikiwe University Awka, Anambra, Nigeria
MLA 8 Nwaogu, Stanley Chika, et al. "AN ASSESSMENT OF THE APPROPRIATENESS OF THE INVESTMENT METHOD OF VALUATION FOR RESIDENTIAL PROPERTIES IN LAGOS, NIGERIA." Int. j. of Social Science and Economic Research, vol. 6, no. 8, Aug. 2021, pp. 2799-2825, doi.org/10.46609/IJSSER.2021.v06i08.017. Accessed Aug. 2021.
APA 6 Nwaogu, S., Oladejo, E., & Egolum, C. (2021, August). AN ASSESSMENT OF THE APPROPRIATENESS OF THE INVESTMENT METHOD OF VALUATION FOR RESIDENTIAL PROPERTIES IN LAGOS, NIGERIA. Int. j. of Social Science and Economic Research, 6(8), 2799-2825. Retrieved from https://doi.org/10.46609/IJSSER.2021.v06i08.017
Chicago Nwaogu, Stanley Chika, Esther.I. Oladejo, and Charles .C. Egolum. "AN ASSESSMENT OF THE APPROPRIATENESS OF THE INVESTMENT METHOD OF VALUATION FOR RESIDENTIAL PROPERTIES IN LAGOS, NIGERIA." Int. j. of Social Science and Economic Research 6, no. 8 (August 2021), 2799-2825. Accessed August, 2021. https://doi.org/10.46609/IJSSER.2021.v06i08.017.
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Abstract: The investment method of valuation is applied in calculating market value of properties expected
to earn income. The method is useful in the process of estimating the non-market value of
properties. Calculating market value of residential properties with the application of investment
method means estimating the market value of the right to receive infinite income flows. This
study examines the appropriateness of the investment method of valuation for residential
properties in Lagos. The objectives are to investigating the annual rental growth rate pattern from
2009-2018; factors that informs the investment method of valuation used: preferred valuation
method used for valuing residential properties and identify the level of variation in the use of
conventional and contemporary investment method. The study population is residential
properties and Estate surveyors and Valuers while systematic random sampling approach was
adopted. Sample size is 195. Statistical tools used are weighted mean, geometric mean, standard
deviation and coefficient of variation, rental index, analysis of variance. The result showed that
rental values of residential properties in Lagos increased at a phenomenal rate within the period,
2009 to 2018; rental growth follows similar trend; market analysis and forces are factors
informing investment method of valuation used; investment method, comparison and cost
method are often used while investment method of valuation is not preferred for residential
properties valuation; wide differences exist between conventional and contemporary valuation
techniques. Estate Surveyors and Valuers should apply their distinct experience in carry out
valuation while ensuring buyers’ preference in the assessment of residential properties.
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