of Recreational Real Estate Investment
in Akwa Ibom State, Nigeria
FEATURED PAPER
By Mbosowo Ebong Ekpoi (PhD) and Nse Akpan Basseyii (MSc.)
i Department of Estate Management and Valuation,
Akwa Ibom State Polytechnic, Ikot Osurua.
Ikot Ekpene, Akwa Ibom State, Nigeria
ii Department of Estate Management
University of Uyo
Uyo, Akwa Ibom State, Nigeria
Abstract
This research aimed at examining the site attributes and capital values of recreational real estate in Akwa Ibom State, Nigeria. In order to achieve the stated aim, the objectives were to examine the site attributes of recreational real estate in the study area, to determine the mean capital value of recreational real estate investments in the study area and to establish the relationship between site attributes and recreational real estate investment in the study area. The research work adopted the cross-sectional survey type of design. The research population comprised Estate Surveyors and Valuers who have rendered professional services in the study area. Stratified random sampling method was used. Both descriptive and inferential statistics were employed in the analysis of the data using the Microsoft Excel software. Data obtained was analysed using regression analysis and analysis of variance. Site attributes formed the independent variable and mean capital value constituted the dependent variable. The study found out that the site attributes comprised considered by investors in the study area comprised plot size, plot shape, utilities and open space. The study also found out varying capital values across the 31 Local Government Areas of the State, with the maximum capital value of N164,100,000.00 observed in Uyo Local Government, and the minimum capital value of N58,280,500.00 observed in Ika Local Government Area of the study area. Regression result showed a p-value of 0.000, which is less than 0.05, F-ratio value of 46.58 and an R2 value of 88.17%. This indicated a strong relationship and implied that site attribute has a significant relationship with the capital value of recreational real estate. The research concluded there was a statistically significant relationship between site attributes and capital value of recreational real estate in Akwa Ibom State. The findings in this research can aid policy makers in reintegrating and rebuilding sub-Saharan African nations for a sustainable development.
Keywords: Site Attributes, Capital Value, Recreational Real Estate, Akwa Ibom State.
Introduction
Recreational real estate investment is very vital in the development of the economy of any nation. Recreational real estate is purchased for recreational purposes; whether it is for hiking, playing games, swimming, cycling, sitting out at open space as well as indoor games (James et al., 2020) and it yields regular income to the investor. However, since the middle of the 20th century, real estate owners, real estate investors and real estate occupiers have struggled to identify the basic factors that influence recreational property prices in the global real estate market (Fernandez et al., 2011). This problem has attracted a lot of interest from researchers, real estate surveyors and other relevant stakeholders concerned with housing development, investment and management. For instance, capital values of recreational properties in a particular neighborhood in most cases differ significantly with the capital values of similar recreational properties in another location within the same metropolis.
Man, nations, region and the world would be severely limited in development without good performance of investments in real estate, which is a key factor for physical and economic growth (Ekpo, 2021). Site attributes and capital values of recreational real estate are interdependent. That is to say that site attributes have implications on recreational real estate investment (Ogunba, 2012) and authors have attested to the existence of undeniable link between them (Ekpo, 2023; Kemiki et al., 2014; Egbenta 2001; Sule 2009). Therefore, there is a recent advocacy for investors to recognize the role of site attributes on recreational real estate investment. Site attributes are observed in terms of its components of open space, utilities, topography, plot shape and plot size.
Urbanization in Nigeria has a long history in its growth and development (Oyesiku, 2002). Extensive development has been a distinguishing feature of the 19th and 20th centuries with the concentration of economic and administrative decision-making in towns in Akwa Ibom State. The present position concerning property investment in the South-South geopolitical zone of Nigeria is that site attributes of real estate investments have remained key issues that practicing Estate Surveyors and Valuers are yet to fully exploit. As a result of this, the researchers were challenged to carry out this research work to determine the full impact of site attributes on recreational real estate investment in Akwa Ibom State of Nigeria. On this note, the aim of this research is to examine the site attributes and capital values of recreational real estate in the study area with a view to establishing the relationship between site attributes and capital values of residential real estate in the study area.
Objectives of the study
In order to achieve the stated aim, the following objectives were set:
- To examine the different site attributes of recreational real estate in the study area
- To determine the mean capital value of recreational real estate investments in the study area
- To establish the relationship between site attributes and recreational real estate investment in the study area.
The increasing rate of variations on capital values of recreational properties among varying neighborhoods in many towns and cities in Nigeria recently has brought about discussions within the spheres of practicing estate surveyors and valuers, property investors as well as policy makers on housing investment and management in Nigeria. Therefore, examining the impact of site attributes such as size of the real estate, shape of the real estate, utilities and open parking space on capital values of recreational properties in Akwa Ibom State, will not only benefit prospective recreational real estate investors in the study area, but would also benefit the real estate surveyors and valuers as well as the policy makers. Since the influence of the site attributes on real estate capital value will be established, all the relevant stakeholders can better understand the causal factors for the variation in capital values of recreational real estate in the study area. With this understanding, the estate surveyors and valuers can isolate variables and develop models about capital values of recreational properties in the study area. In the same vein, policy makers can adequately plan recreational environments, enforce strict adherence of planning regulations and provide effective site facilities that will attract higher capital value and stimulate economic growth in Akwa Ibom State and its environs.
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How to cite this work: Ekpo, M.E., Akpan, B.N. (2023). Site Attributes and Capital Value of Recreational Real Estate Investment in Akwa Ibom State, Nigeria, PM World Journal, Vol. XII, Issue VIII, August. Available online at https://pmworldlibrary.net/wp-content/uploads/2023/08/pmwj132-Aug2023-Ekpo-Akpan-site-attributes-and-captial-value-of-recreational-real-estate.pdf
About the Authors
Mbosowo Ebong EKPO, PhD
Akwa Ibom State.
Dr. Mbosowo Ebong EKPO [BSc (Est. Mgt.), MSc (Est. Mgt.), PhD (Est. Mgt.) ANIVS, RSV] is a native of Utu Ikpe in Ikot Ekpene Local Government Area of Akwa Ibom State, Nigeria. He is the Principal Partner of Mbosowo Ebong & Associates – a firm of Estate Surveyors and Valuers with its Corporate Headquarters at No. 93 Abak Road, Ikot Ekpene, Akwa Ibom State. He obtained his First School Leaving Certificate from Methodist School, Utu, Abak Road, Ikot Ekpene. He attended St. Mary’s Science College and obtained his West African Secondary School Certificate in 1998. He gained admission into the prestigious University of Uyo where he studied Estate Management and successfully graduated in 2007 and obtained his Bachelor of Science (HONS) in Estate Management. He taught in Yobe State Polytechnic, Damaturu when he was posted to Yobe State for his compulsory NYSC programme in 2007. He holds a Master of Science (MSc) degree from the University of Uyo, with specialization in Property Valuation. His love for education earned him a Doctor of Philosophy (PhD) in Estate Management from the same prestigious University of Uyo, with specialization in Real Estate Investment Appraisal. He holds a Diploma Certificate in Statistical Data Analysis.
He is an associate member of the Nigerian Institution of Estate Surveyors and Valuers and has been conferred with the rights and privileges to practice professionally as a Registered Estate Surveyor and Valuer by the Estate Surveying and Valuation Board of Nigeria. He is a lecturer with over 15 years’ experience in research and academia. He is happily married to Dr. Unwana Mbosowo Ebong and the marriage blessed with children. He plays all musical instruments and can speak Annang, English and Hausa languages fluently. Dr. Ekpo can be contacted at mbosowoebong@gmail.com
Nse Akpan Bassey
Akwa Ibom State, Nigeria
Nse Akpan Bassey was born in November 1983 in Calabar, Cross River State. Nse is a native of Ikot Akpan Nya, Ididep in Ibiono Ibom L.G.A. Akwa Ibom State, who had his primary education at St. Theresa’s Primary School, Akamkpa, Cross River State. He obtained his Senior School Certificate at Government Secondary School Akamkpa, Cross River State in 1998. He proceeded to the University of Uyo and earned his BSc and MSc degrees in Estate Management in 2007 and 2017 respectively. He is an associate member of the Nigerian Institution of Estate Surveyors and Valuers and has been conferred with the rights and privileges to practice professionally as a Registered Estate Surveyor and Valuer by the Estate Surveying and Valuation Board of Nigeria. He is a lecturer in the Department of Estate Management, University of Uyo. He is currently a PhD candidate in the University of Uyo. Nse Bassey can be contacted at nsedarlloveline@yahoo.com
