An evaluation of property market maturity in selected state capitals of Southwestern Nigeria
The study examined the property market characteristics in selected state capitals of Southwestern Nigeria; identified and examined the profiles of operators in the study area; determined the property market maturity levels in the study area and investigated the factors responsible for the levels of maturity. This was with a view to providing information which would enhance investment decisions. Primary and secondary data were used for this study.The capitals of three states in Southwestern Nigeria (Lagos, Oyo and Osun) were selected purposively. The study population comprised Estate Surveying and Valuation firms, CommercialBanks and Ministries connected with land matters in the selected state capitals. Following the Directory of the Nigeria Institution of Estate Surveyors and Valuers (2014) there were 133, 61 and 20 firms in Ikeja, Ibadan and Osogbo respectively. The sample frame for the commercial banks was 20 based on the records in the Central Bank of Nigeria website. A total enumeration was carried conducted on all the Estate Surveying firms and Commercial Banks. In addition, two officers in eachof the state Ministries connected with land matters. Data required covered the ten property market characteristics, socioeconomic profile of the market operators, assessments ratings of market operators on the level of maturity of property markets and factors responsible for the maturity levels.Frequency distributions, percentages, weighted mean scores, relative importance index and factor analysis were used to analyse the data collected. The data on the property marketswere analysed on the basis of ten characteristics. The findings revealed that 51(44%) of the respondents perceived that Lagos property market was characterized with databanks but the databanks did not contain all the property market fundamentals. However,27(57.4%) and 11(73.3%) of the respondents in Ibadan and Osogbo respectively perceived that the markets were not characterized with data banks. The overall maturity ratings of the property market showed that the Lagos property market was emerging (having Weighted Mean Score (WMS) of 3.07. The Ibadan property market was also emerging (WMS of 2.71) while theOsogbo property market was immature (WMS = 2.51). The variables identified to be responsible for the maturity levels included high interest rates (WMS = 6.5), absence of secondary markets (WMS = 6.4) and cumbersome land registration processes (WMS = 6.3). These variables were reduced to six factors through factor analysis namely ease of obtaining finance factor, land registration factor adequacy of professionals’ factor, investor friendliness factor, information factor and economic factor. These factors have variance explained 18.368%, 17.641%,10.553%,7.835%, 5.958% and 4.363% respectively. The study concluded that investment structures in the Lagos and Ibadan markets were sufficiently mature to attract investors while the structures in the Osogbo market are still rudimentary.