Impact of Land Speculation on Private Property Development (A Case Study of Oke-Ose Area of Ilorin South/east Local Government Kwara State)
Chapter One
Abstract
This quantitative survey research aimed to investigate the dynamics of land speculation and its impact on property development in the Oke-ose area. Employing a structured questionnaire, data were collected from a sample of 120 respondents, providing valuable insights into the drivers, consequences, and potential mitigation strategies related to land speculation. The study adopted SPSS27 as the analytical tool to process and present the collected data, utilizing t-tests to assess the significance of hypotheses formulated in line with the research objectives. The findings revealed that land scarcity and high demand were significant factors driving speculation, influencing economic incentives and contributing to delayed property development projects. The impact of speculation on property development was substantial, affecting the quality and distribution of developed land in the community. Strategies to mitigate speculation, including clear land-use policies, community-based management, and taxation on speculative transactions, were found to be effective in varying degrees. In conclusion, the study underscores the need for robust policy frameworks, community involvement, and strategic taxation to curb speculative behaviours and foster sustainable property development. The adoption of a quantitative survey approach, facilitated by SPSS27 and validated through t-tests, provided a systematic and rigorous analysis of the research questions. The results contribute valuable insights for policymakers, urban planners, and stakeholders involved in the development of the Oke-ose area, offering a foundation for informed decision-making. The recommendations derived from this study advocate for a holistic approach to urban development, emphasizing the importance of clear policies, community engagement, and collaborative efforts between the public and private sectors. This study contributes to the broader discourse on sustainable urban development and serves as a reference for future research in similar contexts.
CHAPTER ONE
INTRODUCTION
Introduction
Land speculation is a phenomenon that has far-reaching implications for private property development, shaping the landscape of urban and rural areas alike. This study delves into the intricacies of land speculation, particularly focusing on its impact on private property development in the Oke-ose area of Ilorin South/East Local Government, Kwara State. Understanding the dynamics of land speculation is crucial for policymakers, real estate developers, and the community at large to make informed decisions that foster sustainable development.
Background to the Study
Land, as a finite resource, is a subject of substantial economic influence, and speculative activities surrounding it can profoundly impact property development. This intersection between land and economic forces is well illustrated in the Oke-ose area of Ilorin South/East Local Government. According to Agboola, Scofield, and Amidu (2017), understanding property market operations is crucial, especially when viewed from a dual institutional perspective. The case study of Lagos, Nigeria, cited by Agboola et al., provides insights into the intricate relationship between institutions and property market dynamics. This dual institutional perspective is particularly relevant when analyzing the changes in land use patterns in the Oke-ose area.
The Oke-ose area has experienced discernible shifts in its land use patterns, raising concerns about the potential consequences of land speculation on private property development. According to Ding and Zhao (2022), land markets play a pivotal role in shaping urban spatial structures. In Beijing, China, as explored by Ding and Zhao, the dynamics of the land market have significant implications for urban development. The Oke-ose area’s experience aligns with this perspective, as changes in land use patterns often signal underlying shifts in economic and developmental dynamics, influenced by speculative activities.
Historical, economic, and social factors further contribute to the complexity of the land speculation issue in the Oke-ose area. As highlighted by Alonso (2018), understanding urban form requires an exploration of both historical and structural theories. Alonso’s insights into the theories of urban form are essential when considering the historical background of the Oke-ose area. The historical evolution of the region, coupled with structural changes, may offer valuable context to the current challenges posed by land speculation.
Additionally, Ariyo and Ogbonna’s (2018) study on the effects of land speculation on agricultural production among peasants in the Kachia local government area of Kaduna State, Nigeria, sheds light on the broader consequences of land speculation. While the focus is on agriculture, the findings could be extrapolated to understand the potential effects on various land uses, including residential and commercial development. The implications of land speculation extend beyond property markets, affecting livelihoods and land-dependent activities, as suggested by Ariyo and Ogbonna.
The intricacies of land speculation necessitate an exploration of strategies for mitigating its negative effects on private property development. In their study on the impact of speculation and economic uncertainty on commodity markets, Andreasson, Bekiros, Nguyen, and Uddin (2021) delve into the broader implications of speculation. While their focus is on commodity markets, the methodologies employed in mitigating the impact of speculation may offer valuable insights into the Oke-ose area’s context.
Moreover, Brown’s (2017) exploration of speculation emphasizes the need to critically evaluate the phenomenon. Brown’s insights into the nature of speculation, its historical context, and its implications provide a theoretical foundation for understanding and potentially mitigating the negative effects of land speculation in the Oke-ose area. This critical perspective aligns with the aim of the study – to propose strategies for mitigating the adverse impacts of land speculation on private property development.
Statement of Problem
The statement of the problem is at the core of this research, aiming to elucidate the challenges posed by land speculation on private property development in the Oke-ose area of Ilorin South/East Local Government. As highlighted by Andreasson, Bekiros, Nguyen, and Uddin (2021), speculation, driven by economic uncertainties, can have far-reaching consequences. In the context of Oke-ose, the surge in land speculation raises concerns about the potential adverse effects on private property development. The recent study by Andreasson et al. emphasizes the need to comprehend the impact of speculation on various markets, and in this case, its influence on the property market in Oke-ose demands careful examination.
The changing land use patterns in the Oke-ose area, as identified in Ding and Zhao’s (2022) study on land markets and urban spatial structure in Beijing, mirror the broader implications of speculative activities. Such changes not only disrupt established communities but also alter the fabric of urban and rural landscapes. The Oke-ose area’s unique historical, economic, and social context contributes to the complexity of this issue, necessitating an in-depth analysis to understand the specific challenges faced by the community.
Furthermore, Agboola, Scofield, and Amidu’s (2017) research on property market operations in Lagos, Nigeria, provides a relevant backdrop for understanding the institutional aspects that may exacerbate the challenges posed by land speculation. Institutions play a crucial role in shaping the property market, and the dual institutional perspective offered by Agboola et al. may shed light on how institutional dynamics influence the impact of land speculation on private property development in Oke-ose.
The statement of the problem, therefore, encapsulates the urgency and significance of addressing the multifaceted challenges arising from land speculation in the Oke-ose area, taking into account the broader economic uncertainties, changing land use patterns, and institutional factors that contribute to the complexity of this issue.
Research Questions
To guide the investigation, three research questions are posed:
- What are the key drivers of land speculation in the Oke-ose area?
- How does land speculation impact property development in the study area?
- What strategies can be employed to mitigate the negative effects of land speculation on private property development?
Research Hypotheses
In line with the research questions, three hypotheses are formulated:
Nully Hypotheses(H0):
- There is no significant relationship between the drivers of land speculation and property development in the Oke-ose area.
- The impact of land speculation on property development in the study area is not significant.
- Implementing strategies to mitigate land speculation does not have a significant effect on private property development.
Aim and Objectives
The primary aim of this study is to assess the impact of land speculation on private property development in the Oke-ose area of Ilorin South/East Local Government. To achieve this aim, the following specific objectives are outlined:
- To identify the drivers of land speculation in the Oke-ose area.
- To examine the impact of land speculation on property development in the study area.
- To propose strategies for mitigating the negative effects of land speculation on private property development.
Justification of the Study
Comprehending the repercussions of land speculation on private property development holds pivotal significance for fostering sustainable urban and rural planning. This research endeavours to offer valuable insights that extend beyond academia, aiming to directly inform decision-makers such as policymakers, real estate developers, and local communities. The importance of this understanding lies in its potential to guide informed decision-making, steering these stakeholders towards practices that prioritize responsible land use.
The implications of land speculation are not confined to the immediate study area but ripple out to contribute to a more extensive objective – the pursuit of equitable and sustainable development. By addressing the challenges inherent in land speculation, this research aligns with a broader vision of promoting balanced and sustainable growth not only within the confines of the Oke-ose area but also as a blueprint for achieving similar objectives in diverse contexts.
Policymakers can leverage the findings to formulate regulations that mitigate the negative impact of land speculation, fostering an environment conducive to responsible property development. Real estate developers, armed with insights from this study, can adopt strategies that align with the principles of sustainable development, ensuring the long-term viability of their projects. Local communities stand to benefit by gaining an understanding of the potential consequences of land speculation, empowering them to actively engage in shaping the development trajectory of their region.
In essence, this research catalyzes positive change, transcending the boundaries of academic inquiry to directly influence the decisions and actions of key stakeholders involved in shaping the landscape of the Oke-ose area. Through a comprehensive exploration of the challenges posed by land speculation, it aims to contribute meaningfully to the overarching goal of fostering equitable, responsible, and sustainable development within the study area and, by extension, in similar geographical and developmental contexts.
Scope of Study
This study focuses specifically on the Oke-ose area of Ilorin South/East Local Government in Kwara State. The scope encompasses an in-depth analysis of the drivers of land speculation, its impact on private property development, and proposed strategies for mitigation within this geographical area. The findings may have broader implications for similar regions facing comparable challenges.
Study Area
The Oke-ose area, situated within the Ilorin South/East Local Government of Kwara State, Nigeria, embodies a diverse geographical setting characterized by varied topography, encompassing expansive plains and undulating terrains. This multifaceted landscape contributes to the area’s economic significance, hosting a blend of residential, commercial, and agricultural land uses. The strategic mix of these land uses underscores the region’s importance as a dynamic hub with contributions to both urban and rural livelihoods.
Delving into the historical backdrop of the Oke-ose area unveils a narrative deeply entrenched in cultural and economic heritage. The evolution of this region unfolds against the backdrop of urbanization and demographic shifts, tracing the trajectory of its land use patterns over the years. The interplay of cultural dynamics and economic activities has shaped the landscape, giving rise to the contemporary challenges associated with land speculation.
As urbanization has unfolded, demographic shifts have brought about transformations in the utilization of land resources. The intricate interweaving of cultural practices and economic pursuits has left an indelible mark on the land use patterns of the Oke-ose area. This historical perspective is vital for understanding the contextual nuances that contribute to the challenges posed by land speculation in the present day.
The confluence of cultural heritage, economic evolution, and the dynamic interplay between rural and urban elements underscores the complexity of the Oke-ose area. This historical continuum serves as a lens through which the contemporary issues of land speculation can be more comprehensively understood. By tracing the historical evolution of the region, the study aims to unravel the layers of influences that have sculpted the current landscape, providing a rich backdrop for examining the impact of land speculation on private property development in the Oke-ose area.
Definition of Terms
Land Speculation: Land speculation refers to the act of acquiring and holding land with the expectation of future financial gain through the appreciation of its value, often driven by economic uncertainties and market dynamics (Andreasson et al., 2021).
Private Property Development: Private property development involves the process of acquiring, planning, and constructing real estate assets for residential, commercial, or industrial purposes within the context of private ownership (Agboola, Scofield, & Amidu, 2017).
Urbanization: Urbanization is the socio-economic and spatial transformation characterized by the increasing population concentration in urban areas, often accompanied by the development of infrastructure and changes in land use patterns (Alonso, 2018).
Land Use Patterns: Land use patterns refer to the spatial arrangement and distribution of different types of land uses, such as residential, commercial, and agricultural, within a specific geographic area (Ding & Zhao, 2022).
Cultural and Economic Heritage: Cultural and economic heritage encompasses the collective values, traditions, and economic practices that have shaped the identity and development of a particular area over time (Andreasson et al., 2021).
Demographic Shifts: Demographic shifts involve changes in the size, composition, and distribution of a population over time, influencing land use patterns and socio-economic dynamics (Agboola et al., 2017).
Institutional Perspective: An institutional perspective refers to the analysis of social, economic, and political institutions and their role in shaping behaviours, decisions, and outcomes, particularly within the context of property markets (Agboola et al., 2017).
Equitable and Sustainable Development: Equitable and sustainable development entails balanced and fair growth that meets the needs of the present without compromising the ability of future generations to meet their own needs, with a focus on economic, social, and environmental dimensions (Agboola et al., 2017; Andreasson et al., 2021).
References
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