ABSTRACT
Real estate investments in Enugu urban are mostly done by individual/household investors. Considering the large capital outlay involved, investors seek to invest in locations and neighbourhoods where investment will be worth-while. Urban centres in Nigeria are generally characterized by population explosion which has resulted to chaotic location of conflicting activities and distorted property neighbourhoods which is also evident in Enugu urban. One of the greatest challenges of the property investor today is the security of investment. As a result of sharp decline in the capital market, due to economic recession in the past years, investors are steadily changing focus to what they consider as a more secure investment. Several studies reveal that proximity to main CBD has the most significant effect on property value. The study is on the assessment of Location and Neighbourhood effects on real property investment Decision in Enugu urban. The research objectives raised were: to identify the major determinants of location and neighbourhood preference among real property investors in Enugu urban; to identify the relative importance real property investors attach to these location and neighbourhood specific factors; to identify the clusters of real property investors to whom different location and neighbourhood factors are more important; to identify the extent to which individual or household investors’ location and neighbourhood choices are affected by their demographic profile. There are several factors that influence the choice of location of real property investment. The study was designed to understand how real property investors traded-off between various choice factors in their decision process of location selection for real property investment in Enugu urban. The study employed the survey research. Data were sourced from primary and secondary sources. Purposive and simple random sampling techniques were used to elicit data from three classes of respondents: institutional investors, the private sector investors comprising of estate valuers and informal land agents; and land developers/land lords. Out of the 470 copies of the questionnaires distributed, 400 was retrieved and used for the study. The study concentrated on five housing estates in Enugu urban, where physical developments were at the early stage. Principal Component analysis, conjoint analysis and ANOVA were used to analyse the data. The study identified and classified determinant of location and neighbourhood preference among real property investors in Enugu urban into 4 components that explain 59.232 percent of observed variability. The identified and classified determinants are Municipal Infrastructure-based features, Social Infrastructure (Accessibility -based features)/proximity to CBD, overall appearance Neighbourhood Quality (Private investment-based features) and Economic/ Legal -based features. Again, Prices of plots, property title and property transfer charges (economic/legal based factors) were the highest rated attributes with a relative importance score of 24.06% compared to the lowest rated attribute- municipal infrastructure based factor, which had a relative importance of 11.11%. Two clusters were identified in this study. Although they all had economic/legal based factors as their most important attribute, they differed in terms of the next most important attribute. Individual/household investors who were employed in the organized private sector placed more importance on accessibility (ri =13.21; t-value= 6.55; p<0.05) than their counterparts in civil service (ri =9.41; t-value= 6.55; p<0.05). Other demographic variables had insignificant impacts on investors’ location decision in Enugu urban. The policy implication of the study was that regional government should strengthen the services of the ministry of lands, whose responsibility it is, to process land title document for this will invariably enhance and encourage real property investment in the study area. Again, information dissemination should be encouraged between property agents (qualified) and property investors, this will to a great deal guide the property investors in their property location choices.
TABLE OF CONTENTS
Title – – – – – – – – – – – i
Approval – – – – – – – – – – ii
Certification – – – – – – – – – – iii
Dedication – – – – – – – – – – iv
Acknowledgement – – – – – – – – – v
Table of Contents – – – – – – – – – vi
List of Tables – – – – – – – – – – vii
List of Figures – – – – – – – – – viii
Abstract – – – – – – – – – – ix
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study – – – – – – – 1
1.2 Statement of Research Problem – – – – – – 3
1.3 Aim of the Study – – – – – – – – 4
1.4 Objectives of the Study – – – – – – – 4
1.5 Research Questions – – – – – – – – 4
1.6 Research Hypotheses – – – – – – – – 4
1.7 Significance of the Study – – – – – – – 5
1.8 Study Area – – – – – – – – – 7
1.9 Scope of Study – – – – – – – – 14
1.10 Limitations of the Study – – – – – – – 15
CHAPTER TWO: REVIEW OF LITERATURE
2.1 Theoretical Framework – – – – – – – – 16
2.2 The 3Ls of Location – – – – – – – – 18
2.2.1 Location theory – – – – – – – – 19
2.2.2 Location and Neighbourhood Preferences – – – – – 23
2.2.3 Analysis of Multi –Nuclei Urban Structure Studies – – – 25
2.3 Location in Relation to Central Business District (CBD) – – – 27
2.4 Assessment of Contemporary Location Theory – – – – 29
2.5 Conceptual Framework – – – – – – – – – 30
2.6 The Concept of Neighbourhood – – – – – 30
2.7 Housing and Neighbourhood Quality – – – – 34
2.8 The Concept of Value in Real Property – – – – – – 38
2.9 Accessibility and Property Value – – – – – – 43
2.10 Public Services and Property Location Choice – – – – 47
2.10.1 Features of Public Services – – – – – – – 49
2.10.2 Facilitators of Public Services – – – – – 50
2.10.3 Urban Public Services in Nigeria – – – – – 51
2.10.4 Effect of Public Services on Property Values – – – – – 52
2.11 The Concept of Investment – – – – – – – 53
2.12 Decision Tree as a Tool for Decision Making – – – – 54
2.13 Property Investment Location Decision – – – – – 56
2.13.1 Investment in Real Property and Alternative Investment in Security – 59
2.14 Decision Making Process – – – – – – – 61
2.15 Urban Economies – – – – – – – – 63
2.16 The Concept of Urbanization and the Causes – – – – 64
2.16.1 Causes of Urbanization – – – – – – – 67
2.17 History of Urbanization in United States – – – – – 68
2.18 Urbanization in Nigeria – – – – – – – 69
2.19 Urbanization in Enugu Urban – – – – – – 73
2.20 Summary of Literature – – – – – – – 75
2.21 Review of the Study on Assessment of Spatial Urban Dynamics in
Enugu Urban using GIS and Remote Sensing 77
2.21.1 Methodology 77
2.21.2 Findings 77
2.22 Review of the Study on an Examination of the Factors Affecting
Residential Property Values in Magodo Neighbourhood Lagos State – 78
2.22.1 Methodology – – – – – – – – – 78
2.22.2 Findings – – – – – – – – – 78
2.23 Review of the Study on the Concept of Neighbourhood in Contemporary
Residential Environments: An Investigation of Occupants’ Perspective – 79
2.23.1 Methodology – – – – – – – – – 79
2.23.2 Findings – – – – – – – – – 79
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design – – – – – – – 80
3.2 Sources of Data Collection – – – – – – – 80
3.2.1 Primary Source – – – – – – – 80
3.2.2 Secondary Source – – – – – – – – 81
3.3 Sample Population – – – – – – – – 82
3.4 Sample Frame – – – – – – – – – 82
3.5 Sampling Technique and Sample Size – – – – – 82
3.6 Instrument for Data Collection – – – – – – 84
3.7 Validity of the Instrument – – – – – – – 84
3.8 Reliability of the Instrument – – – – – – – 85
3.9 Procedure for data Collection – – – – – – – 85
3.10 Method of Data Analysis – – – – – – – 86
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Frequency Distribution of both Administered and Returned Questionnaire – 89
4.2 Summary of Real Estate Investors’ (Individual/Household) Demographic
Characteristics – – – – – – – – 90
4.3 Selected Primary Neighbourhood and Location Decision Variables – – 92
4.4 Factor Groupings of the Primary Satisfaction Variables – – – 94
4.5 Summary of Conjoint Analysis Results Showing the Major
Determinants of Neighbourhood and Location Preference in the Study Area 98
4.6 Relative Importance Index showing “Trade-offs” for
Individual/Household location Decision Variables – – – – 101
4.7 Relative Importance showing Real Property Partnerships’ “Trade offs” on
Location Decision Variables – – – – – – – 103
4.8 Relative Importance Index showing Institutional Investor’s
“Trade-offs” on Location Decision Variables – – – 105
4.9 Summary of the Ranking of each Investor’s Location and Neighbourhood
Preference Determinants – – – – – – – 106
4.10 One-way ANOVA showing the difference in the Rankings of Location
Decision Variables among Real Estate Investors in Enugu – – – 107
4.11 Initial Cluster Centres – – – – – – – – 108
4.12 Final Cluster Centres – – – – – – – – 108
4.13 Distance between Final Cluster Centres – – – – – 109
4.14 Number of Cases in each Cluster – – – – – – 109
4.15 Relative Importance of Attributes by respondents’ Age – – – 110
4.16 Relative Importance of Attributes by respondents’ Educational Exposure – 110
4.17 Relative Importance of Attributes by respondents’ Average Monthly Income 111
4.18 Relative Importance of Attributes by respondents’ Household Size – – 112
4.19 Relative Importance of Attributes by respondents’ Marital Status – – 113
4.20 Relative Importance of Attributes by respondents’ Employment Status – 113
CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1 Summary of Findings – – – – – – – – 115
5.2 Recommendations – – – – – – – – 116
5.3 Conclusion – – – – – – – – – 117
5.4 Contribution to Knowledge – – – – – – – 117
5.5 Area of Further Research – – – – – – – 118
References – – – – – – – – – 119-129
Appendix
Questionnaire
Sketch of Enugu Urban
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Real property in its broadest sense consider landed property in general which include the undeveloped, developing and developed land; as well as the bodies of water found on land, such as rivers, streams, lakes, beaches and so on. All these command value as a result of their utility to man. Which means, to be in possession or in occupation of whatever that constitutes land, a price must be paid. This simply refers to the value of land and landed property. Hence, the question of which portion(s) of land or landed properties are in possession of property investors, become a matter of choice and decision of the real property investors. The choices of the investors regarding the locations of their investments on land are results of interplay of several economic and social factors. The spatial distribution of economic activities in a country, state or location at any point in time reflects the impact of past activities on the economic environment as well as the current decision and responses of economic actors (investors). (Ukwu 1993).
The value of any land or landed property depends on several variables. From an economic view-point, two types of land exist, which are considered as either rural or urban. This simply refers to the location where such land or property is situated or positioned in relation to developed social amenities. The difference between rural and urban land is the way they are valued or the worth attached to them (Nwanekezie,1996). Rural land is valued for its resource-productivity: (what it produces such as food, water, mineral beneath the earth surface and so on; as well as the market value of those resources). Urban land is valued for its people-productivity (value based on the activities it houses and the market value or worth of those activities). Invariably, this means that at a fundamental level, all urban land become valuable based on how effectively they attract human activity. In many urban areas, real property investments are now considered in a more conducive neighbourhood since it generates a competitive advantage over unconducive neighbourhoods. (Kauko, 2010).
The market for urban land is of central importance to the theory of urban location patterns. Housing, manufacturing and commercial activities use land as a major factor of production, without which production is impossible. The land market determines what is common in particular locations. The standard spatial model known as the mono-centric city model which is based on the assumption that the city revolves around a single centre: where all jobs are located and people commute from the surrounding residential areas to their job centres. Property location proximity to Central Business District (CBD) has been believed by many scholars to have the most significant effect on real property investment decision. However, property investors have continued to make successful property investment decisions in Enugu urban with the continuous movement of employment away from CBD.
Therefore, the traditional mono-centric oriented measures of radial distance used to place value on industrial properties in an urban area is most inappropriate in recent times as several urban centres have developed multiple centres. However, one fundamental decision to be taken by any entrepreneur is the geographical location of their enterprise. This gives rise to the question of ‘where’? The decision on location considers the cost associated with different locations, however the final decision will rest upon some calculation of the maximum net advantage of alternative locations. (Stanlake and Grant,1995).
Urban Economics explains the functioning of the city by the household behaviour relative to their choices of residential location and the formation of residential property value. The value of property is of paramount importance to the property investor considering the large capital outlay involved. Hence investors seek to invest at locations and neighbourhoods where investment is worth-while in terms of returns. Neighbourhood characteristics from several studies {Galster (1986), Segal et al (1979)} are significant in explaining house prices, therefore it is assumed to be significant in investors’ location choices. These neighbourhood factors can include the measures of local public services like schools, hospital, security (as measured by crime rates), accessibility to work, highways, and commercial centres. It may also include distance to facilities such as parks and other recreational facilities. The characteristics of neighbours such as their level of education, the quality of other houses in the area, noise levels, are general measures of aesthetics. While attempting to assess the dwelling occupants’ satisfaction from the overall residential environment, it should be considered that different performance criteria apply to different physical components of the residential neighbourhood. Enugu urban is a good example of a growing and emerging urban area in Nigeria in general. Olayinka, Funsho and Ayotunde (2013) identified that investment and return on property as being juicy in some neighbourhoods such as Ikoyi, Victoria Island, Lekki-axis,Ikeja,Apapa, Isale Eko and Amuwo Odofin; all in Lagos state, Nigeria. They also observed that these neighbourhoods had such similarities as characteristics as being centrally located in Lagos state.
1.2 STATEMENT OF THE RESEARCH PROBLEM
Urban centres in Nigeria are generally characterized by population explosion which has resulted to chaotic location of conflicting activities and distorted property neighbourhoods which is also evident in Enugu urban. One of the greatest challenges of the property investor today is the security of investment. As a result of sharp decline in the capital market, due to economic recession in the past years, investors are steadily changing focus to what they consider as a more secure investment: real property. Real property is preferred since it is considered to be less volatile when compared with alternative investments such as stock and shares. Though competition on real property demand forces property value up, the effect of location and neighbourhood cannot be divorced in decision-making in real property investment. Real property development everywhere in the world is a capital intensive venture. Property investment decision, if not well articulated by a professional through advice and guidance could result to financial insecurity which the investor would face. Ball (1998) stresses the importance of acknowledging the complexity of influence in the property investment decision-making environment. Oni (2007) added property location as one of the extrinsic factors that affect property value. The argument here is that location decisions have a long-term impact on property investment and several scholars[Olayinka,Funsho and Ayotunde,(2013),Oyebanji(2003), Kauko (2003) have opined that certain location attributes(proximity and accessibility to various (dis)amenties including public transportation, electricity, pipe born water, schools, shopping centres and so on) and neighbourhood attributes( socio- economic characteristics of neighbouring residents, quality of neighbouring structures and so on) influence property value. Dubin and Sung (1990), Can (1992) and Aluko 2011 were inconclusive on the influence of neighbourhood variables on residential choices. Emerging real property market in Enugu urban has been believed by many investors to have a limited range of market data to enable investors make their investment location decisions. This link has primarily been based on speculations and devoid of any empirical backing.Hence, this study hinges on the desire to empirically understand the influence of location and neighbourhood choices on the emerging areas in the study area. The major question is whether property investors in Enugu urban are deterred by some locations in making property investment decision? The idea of healthy neighbourhood in good location poses challenges to urban centres generally in Nigeria, especially in Enugu urban. The less attention given to the process of developing health-enhancing neighbourhoods that strengthen urban centres and thereby improve the value of urban properties cannot be over-emphasized.
1.3 AIM OF THE STUDY
The aim of the study is to assess the location and neighbourhood effects on property investment decision in Enugu urban with the view to guide real property investors to ensure efficient and progressive real property investments in the study area.
1.4 OBJECTIVES OF THE STUDY
The following objectives were postulated in order to achieve the aim of the study
- To identify the major determinants of location and neighbourhood preference among real property investors in Enugu urban.
- To identify relative importance attached to location and neighbourhood factors by real property investors.
- To identify the specific clusters of real property investors to whom different locations and neighbourhood factors are more important.
- To identify the extent to which individual or household investors’ location and neighbuorhood choices are affected by their demographic profile.
1.5 RESEARCH QUESTIONS
(i) What are the major determinants of location and neighbourhood preference among real property investors in Enugu urban?
(ii) What relative importance do real property investors attach to these location and neighbourhood specific factors?
(iii) What are the clusters of real property investors for whom different location and neighbourhood factors are more important?
(iv) To what extent does the demographic profile of the individuals or household investors’ affect their location and neighbuorhood choices for real property investment?
1.6 RESEARCH HYPOTHESES
The following hypotheses are proposed to achieve the aim and objectives of this study:
Hypothesis 1:
The determinant of location and neighbourhood preference among real property investors in Enugu urban cannot be identified and classified.
Hypothesis 2:
There is no significant difference between different investors’ assessment of location effects on real property investment decision.
1.7 SIGNIFICANCE OF THE STUDY
Nigeria is one of the fastest developing nations of the world, hence what constitutes an adequate and quality neighbourhood should not be found wanting. Enugu was known as the capital of East Central States; hence it is seen as the heartland of the Igbos which is one of the three major ethnic groups in Nigeria. The concept of location, (which literally is “where a thing is situated or found” and Neighbourhood, which refers to the “physical characteristics that feature in a particular location”) in real investment decisions is significant in several ways and to several groups ranging from:
(i) Private Individuals
These refers to private investors in property, who need to make decisions on which areas their property investments would be located in order to get maximum returns, which is the ultimate goal of any investment. This as well refers to individuals who take decisions on choice of residents on daily basis. It is important for the individual to thoroughly consider where his real property investment will be located because of the following: large sum requirement for real property investment which many private individuals obtain through loan from financial institutions; interest and principal repayment on loan which commences as soon as the loan is granted without delay. Therefore the individual investor should avoid imprisonment of such fund by choosing viable locations while avoiding less viable ones.
(ii) Property Developers
This refers to the initiator of location and neighbourhood of properties, who are the first decision takers on choice of location and neighbourhood before the occupiers. These are strictly business minded investors who require maximum returns on their investment for immediate re-investment. The property developer whose major goal is profit generation and immediate business continuity should be interested in locations that allow for quicker re-investment in real property after the completion of one. This is highly dependent on the desirability of such locations and neighbourhoods by other property investors as well as occupiers.
(iii) The Planning Authorities
It is hoped that this study will assist the planning authorities in the study area to map out proposals for infrastructural development in the study area, in order to encourage real property investors who despite all odds, with the low level of infrastructural development in the studied developing areas have continued to thrive.
(iv) The Real Property Registering Authorities
The Ministry of Lands, which is saddled with the responsibility of real property title registration, should make the process of title registration more efficient and effective by reducing the number of days involved in real property title registration and documentations. This will enhance real property transactions within the study area and in turn boost the economy as well as result to more housing development in the study area.
(v) The Government
This study is significant to the government since the government is expected to promote health-enhanced neighbourhoods by setting up monitors on indiscriminate property development which results to low quality neighbourhoods, that reduce property value and invariably deter real property investors within the study area. Promotion of health-enhanced neighbourhood, will invariably foster economic growth and development.
(vi) This study will encourage the development of strategies for estate layouts that will promote urban neighbourhood quality, which will invariably improve property values as well as encourage real estate investment in Enugu urban.
(vii) This study will help the government to take decisions to maintain, renovate, repair and make additions where necessary on existing infrastructure in Enugu urban which will lead to increased higher quality neighbourhoods.
1.8 STUDY AREA
Enugu urban is the capital of Enugu State in Nigeria. It is situated within the following coordinate limits: 6027’9.60”N 7030’37.20”E. The core city has an area of about 90km2. It is located in the South Eastern area of Nigeria and is largely populated by the Ibo ethnic group. Enugu urban is made up of Enugu East, Enugu North and Enugu South local government areas. Enugu State lies within the tropical rainforest belt of Nigeria. History has it that Enugu owes its existence to the discovery of rich seam of coal deposit east of Ngwo village in 1909 by Mr.Kitson, a British mining Engineer. Enugu, popularly known as coal city, became the administrative capital of the former East Central State in 1938. It has a population of about 722,664 according to 2006 population census. Enugu urban is predominantly characterized by change in residential land use to commercial use in order to maximize returns on land. In recent times, Enugu urban is noted for a gradual improvement on infrastructural facilities such as road rehabilitation and pipe born water provision in certain neighbourhoods.. Presently, the largest real estate Housing Scheme in West Africa, known as Enugu Golf estate is being built. The geographical features of Enugu urban include:
* Nike Lake: near which the Nike Lake hotel has been built.
* The Ekulu, Asata, Ogbete, Aria and Idaw and Nyaba rivers are the six largest rivers located in the city. The Ekulu River is the largest body of water in Enugu urban.
* The principal elements of the urban centre include the Central Business District (CBD) (the secretariat), the government reserved area (GRA), Ogbete main market and some residential areas as well as some slums. Within the urban centre lies a network of rail lines that provide inter-city passengers and freight transport services.
Enugu is an important administrative, educational, commercial and industrial centre. The land space covers an area of approximately 118.270 Sq. Km (estimated from Quickbird Satellite Imagery of Enugu Metropolis using GIS approach, 2008). Enugu is a cosmopolitan city and its main economic activities include commerce, transportation, small and medium scale manufacturing and agriculture. The city is also a highly rated hub for intellectualism as it plays host to five tertiary institutions. It has a fairly good network of roads as well as railway lines which connect the northern part of Nigeria to the south. Enugu is a large metropolitan area and has most basic municipal and social amenities such as markets, schools, banks, electric power supply and pipe borne water with information communication technology systems. Enugu urban is made up of a total of twenty-four neighbourhoods; seven each in low and medium density neighbourhood class and ten in high density neighbourhoods. See table 1 below:
Table 1.1: Neighbourhoods in Enugu Urban
| Low density | Medium density | High density |
| GRA | Achara Layout | Abakpa |
| City Layout | Awkunanaw | Asata |
| Independence Layout | Idaw River | Iva Valley |
| Republic layout | Mary land | Ogbete (Coal Camp) |
| Riverside | New Era | Ogui New Layout |
| Thinkers corner | New Haven | Udi Siding |
| Trans ekulu | Emene | Emene |
| Uwani | Ogui Urban | |
| Asata camp | ||
Source: Ministry of Land, Enugu, 2007
From table 1.1 above, it is revealed that GRA, Independence layout, and City layout are examples of low density neighbourhoods, Achara Layout, Maryland and New Haven are examples of medium density neighbourhoods while high density neighbourhoods include Ogbete (Coal Camp), Asata and Iva Valley. The GRA and independence low density areas were initially built and occupied by the whites who were the founders of the city. These residential areas were built for their maximum comfort hence the low density nature of the areas and having their locations at reasonable distances from the CBD.
The predominant land uses in Enugu City are residential, commercial, industrial, institutional and transportational land uses. Most of the residential areas in the City like Ogbete, GRA, Achara Layout, Uwani, Abakpa, and so on were planned and built according to the grid-iron pattern. Secretariat in Government Reserved Area (GRA), Ogbete Main Market, Okpara Avenue, Chime Avenue and Zik Avenue are the main places of work and therefore form the Central Business District (CBO).
Over the years, Enugu City has experienced a steady increase in population mainly through rural-urban migration. Coal mining activities and extension of railway line from Port Harcourt to enable the coal to be transported to the coast for export, attracted waves of migrants from the surrounding villages to the extent that in 1917, it attained a township status under Lord Lugard’s Ordinance. The growth of the City is evident from the various population census figures from 1952 to 2006. It recorded a population of 62,764 in 1952; the 1991 Census puts the population figure of Enugu to be 462, 514, accommodated in 28 residential layouts. The 2006 Census records the population of Enugu to be 822, 664. The neighbourhood distribution of 1991 Population Census was projected using the Thomas Malthus’ Exponential Model;
Pt + n = Pt (1+n)n
Where Pt = population of Base Year (1991)
n= Number of units of time in 19 years.
Pt + n = Population of projected year 2010.
r = Rate of population changes in percent/population growth rate (2.8)
A number of the population in the area are employed by government, while a greater number
of people are self-employed and are undertaking informal sector activities like: street trading
hawking, commercial tricycling, artisanship and so on.
The urban residential space in Enugu is classified into low, medium and high density areas. Areas of mixed densities do exist. Planned and unplanned areas sprang alongside Enugu metropolis as a result of a high demand in residential accommodations. That is to say that the urban residential space in Enugu metropolis is not necessarily a continuous zone, but an arbitrary defined one circumscribing about twenty neighbourhoods and some intervening open spaces. Many informal business sectors grow alongside with the residential units as noticeable in areas like: Kenyetta-Edozie Street axis, Agbani-Ziks Avenue Road, Ogui Road, Obiagu Road, Abakpa Road, Emene Road, Chime Avenue and so on.
This class of neighbourhood, just as the nomenclature implies, is characterized by the highest concentration of people living per unit area of living space. As stated earlier, Asata and Coal Camp (Ogbete) areas are such examples in Enugu urban. The predominant housing type within this neighbourhood class is the tenement building, although there are few blocks of flats. A systematic survey of this neighbourhood revealed that the typical tenement building has an average of 7 rooms (lower limit) and 13 rooms (upper limit) on one floor or more, a central corridor that provides access to a detached common kitchen and toilet(s)/bath(s). The shared facilities (kitchen, toilet and bath) are usually not detached in multi-storey tenements.
The occupancy ratio per room in these tenements is estimated at 5 persons on the average. This is very obvious given the large family sizes of residents in this neighbourhood class. Given this scenario, a tenement with ten rooms provides accommodation for approximately 50 persons. This has far reaching consequences on the rate of wear and tear on the property, the overstretching of amenities on the buildings and considerable pressure on municipal services as well as waste management procedures. The rather rapid population growth in these neighbourhoods coupled with the acute accommodation deficit presents a clear mis-match with far reaching implications on the environmental quality and degree of functionality of municipal services. Frequent breakdown or, in extreme cases, total failure of public amenities is therefore inevitable. There is also a high concentration of commercial land uses evidenced by markets and roadside artisan hawking within residential areas. The negative externalities generated, especially pollution in all forms, seem to outweigh any perceived benefits. These peculiarities need be factored in during the design and maintenance of municipal services.
New Haven, Achara Layout, Idaw River are some examples of medium density neighbourhoods in Enugu urban. Although there is a mix of different housing types in these neighbuorhoods, blocks of flats are the most common. A block may consist of 4 to 8 flats on two or more floors. Bungalows, duplexes and fully detached houses also constitute available housing options in these neighbourhoods. Most residential properties have perimeter fence(s) which are either dwarfed or full height. These neighbourhoods enjoy considerable presence of municipal services, is virtually central and easily accessible. At New Haven, Chime Avenue precisely, which divides the neighbourhood into two (east and west), is a high brow commercial district with most buildings fronting the avenue providing accommodation for commercial uses. There is a significant presence of urban municipal services in this neighbourhood which can be attributed to the regeneration scheme. The availability of water supply, waste management facilities, improved road network and drainages in the neighbourhood greatly influence its desirability as a choice residential neighbourhood for the middle class. Easy accessibility to complimentary land uses such as commercial and recreational amenities within the neighbourhood is another significant factor that influences the demand for accommodation within this neighbuorhood. Given the level of exposure of the middle class, the typical family size within this neighbourhood consists of an average of six persons per housing unit, which is mainly the flat system. When compared with Coal Camp, New Haven is a more functional neighbourhood, clearly urban with very visible aesthetics. Although there are several advantages to the neighbourhood, waste management challenges exist as the waste dumpsters are neither adequate nor regularly evacuated. Domestic waste, especially non-degradable ones litter some streets in the neigbourhood which is very unsightly. The presence of automobile workshops within residential areas also constitutes a nuisance within this neighbourhood. The inevitable unpleasant externalities thus generated include noise, automobile oil spills, and abandoned wrecked vehicles, indiscriminate on-street parking and poor waste disposal system. Mbanefo Street is a clear example of this occurrence.
GRA, Independence layout and Republic layout are neighbourhoods identified in this category. GRA is the oldest low density neighbourhood in Enugu urban and dates back to the colonial era. The neighbourhood was primarily created to provide administrative and residential quarters for the colonial masters. A typical residence comprise of a fully detached bungalow or storey building, a service quarter, plant house, ample landscaping and a gate house. Most of the initial buildings still existing today confirm this. The plot sizes in this neighbourhood are the largest in Enugu urban, ranging from 1,800sqm to 3000sqm, although the land market dynamics have led to a reduction in the plot sizes. The neighbourhood enjoys considerable green areas in addition to the presence of functional urban municipal services. Most of the houses are either owner-occupied or service quarters for government officials. There are also a number of blocks of flats and tenement buildings. The neighbourhood plays host to a tertiary institution hospital known as Park lane hospital, a number of faith based organizations, police posts and educational institutions. Presently, the erstwhile Polo Park now houses an ultra modern shopping complex known as Shoprite. The availability of these social amenities invariably means better and secure access to social, commercial and economic opportunities within the neighbourhood.
The population mix is typically urban. Most residents in this neighbourhood belong to the upper-middle class or upper class of the society. They are well educated and professionals in different disciplines. Consequently, attitudinal disposition to aesthetics, security and orderliness is quite high when compared to other neighbourhoods. There is however the presence of artisans, unskilled workers and those generally considered as the lower class. These classes of residents are either junior cadre staff of the Nigeria Railway Corporation (NRC) or in private employment of the upper class residents. Students of tertiary institutions also reside in this neighbourhood, and mainly occupy tenement buildings on rental basis. Summarily, the neighbourhood still maintains the colonial touch both architecturally and aesthetically, and is often referred to as the safest neighbourhood in Enugu urban.
Although Enugu City is an administrative centre, there exist a lot of commercial activities scattered all over the city. The commercial centres are located at Ogbete main Market, Kenyetta Market, Abakpa Market, Artisan Market, Oye Emene Market, New Market (Relief Market), Spare-parts Market Coal Camp and so on. These markets are major centres of commercial activities in Enugu metropolis. These markets are so congested and over-crowded that some of the traders encroach on the streets and roads. This is the major cause of the continuous traffic congestion around the areas where these markets are located. Apart from the markets mentioned, commercial activities such as super-markets, departmental stores, banks, electronic stores, car sales areas, restaurants, hotels and filling stations are located on major streets in the metropolis. The major streets where these commercial activities are seen include Okpara Avenue, Zik Avenue, Ogui Road, Agbani Road, Nike Road, and Obiagu Road.
The discovery of oil in Nigeria contributed seriously in relegating the role of coal mining to the background. Moreover, the political influence of Enugu is equally dwindling with successive creation of more states. This came to its highest peak with the “indigene” syndrome, which required civil servants from newly created states to return to their state of origin. All the same, Enugu remains one of the largest commercial and industrial centres in the nation. The available government institutions and vital transportation facilities such as the railway, airways and roads have attracted sizable number of medium and large firms, which generated and still generate reasonable economic opportunities. Besides, many “non-indigenes” who no longer work in Enugu still operate from the city. All these and more have had very serious implications on the transportation system in the state. The commercial tricycle services are quite serious and active in the state. It is a plain truth that concerted effort has not been made to fully exploit the rudimentary infrastructure for industrial development in Enugu. In fact, its single dominant economic function is state administration as well as commerce and retail-distributive trade (Enugu Master plan, 1979).It is obvious that the government sector is a major employer of labour in the city. This is because as an administrative centre, it has a long-time established and well-developed public service. Unfortunately, the current effect of inflation and poor value for naira has destabilized the economy and affected the economic empowerment of the people adversely.
The urban informal sector employs 52 percent of the work-force which is the highest employing sector. This sector is made up of economic activities like small scale trading, transport, construction, manufacturing, household and personal services employing not more than five persons. According to Onakerhoraye (1982), this sector is characterized by reliance on indigenous resources, ease of entry, family ownership of enterprise, small-scale operation, labour-intensive and adapted technology, skills acquired outside the formal school system and unregulated, competitive market. This sector seems to be receiving a special encouragement from the current adverse economy. It is greatly absorbing the unemployed, and under-employed in part-time job. The school leavers, graduates and working housewives are special groups within this sector. The government has done much to improve this sector by establishing National Directorate of Employment (NDE), People’s Bank, and Community Banks and so on. However, the full utilization of the objectives of establishing these supportive institutions is yet to be achieved.
The private urban formal sector is usually made up of manufacturing, construction, wholesale/retail, transportation, banking, finance, professional and other miscellaneous services that employ more than 5 persons. This sector was employing up to 11.5 percent in the 1970s. However, the distress state of Nigerian economy can no longer permit it. The situation has placed serious hindrance to the growth of existing big industries and discouraged the establishment of new ones. The public urban formal sector is made up of large manufacturing and other services establishments including the utilities owned by the government. The current privatization and commercialization efforts of the government are concerned with reducing the institutions in this sector to the barest minimum and ensure high productivity and profitability of the very essential ones. This sector as at now is facing massive retrenchment, temporary lay off, and non-recruitment of workers.
The agricultural sector which employed 5.0% constituted 3.8 percent of the work force was from rural communities. Other workers of this sector are those who engage in farming as supplementary job while involved in other sector of the economy.
1.9 SCOPE OF THE STUDY
The scope of this study is limited to the physical factors that influence property investment location decisions. The factors do not include political or behavoural factors. However, it is clear that a range of factors may influence property investors’ decision on location, which results in price variations and preferences. The study focused on the influence of location and neighbourhood on the real property investors’ choices within Enugu urban. The study underpins mainly resisential property investments. The study was restricted to five developing locations/estates in Enugu urban and these are Premier layout at new artisan, Olympic layout off one-day (Agbani road) and Harmony estate at Umuchigbo iji Nike, Network estate (Ibiagwa Nike) and Royal palm estate ( Ako Nike). Enugu urban is the capital of Enugu State of Nigeria and a socially heterogeneous city with variety of activities of which real property investors are major players. The study also considered three main classess of property investors and they include the institutional investors (government agencies and private corporate institutions ); the private sector investors comprising of estate surveyors and valuers and informal land agents who must be operational in Enugu real estate market; and the household/individuals who also make such decisions mainly for owner-occupier basis.
1.10 LIMITATIONS OF THE STUDY
This study is not void of limitations and constraints. Some specific challenges encountered in the course of this study include the limitations in terms of literature as not many scholars have related real property locations to real property investment decisions; selection of study participants was a big task as there was need to choose the appropriate participants who had knowledge of the relevant responses relating to the study specifically. Hence a pre-selection exercise was carried out to get the appropriate participants for this study. This was rather time consuming and challenging too. A quite number of the respondents delayed completion and return of their completed questionnaire, hence the researcher as well as research assistants faced the challenge of transportation, due to such several movements in order to recover completed questionnaire for the study. Another limitation encountered in the course of the study was that the choices of real property property investment location in the study area has shifed mainly to the emerging areas, but the respondents remain those in the emerged areas who are the major players in the emerging areas
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