Property development is regarded as a complex decision making activity and in most decision making situation the decision maker’s judgment is bounded in its rationality due to the decision maker’s own limited decision making ability and capability, further it has been suggested that decision makers rely on development valuation /appraisals from certified development valuers in making decisions. This paper was structured to study the role of development valuation in property development project in Abeokuta with a view to provide better understanding of the concept for the prospective investors. Relevant literature was reviewed along earlier studies involving the concept of property development project and techniques in the valuation of property development projects. Also methodological frameworks were employed empirically to investigate issues raised in an attempt to satisfying the objectives of the study. In view of that, all the 13 registered estate surveyors and valuers firms in the study area were served with the structured questionnaire. The results, based on chi-square goodness of fit test, indicated statistically indifference with the models applied for project appraisal. It was therefore, discovered that although development valuation plays a significant role in making decision but suffers from the drawback that home buyers /sellers of property development project do not always employ the appraiser’s estimate /values as their true market prices. The study therefore suggested that necessary exposure to valuation models / standards and their applications are necessary in order to be at the same level with advanced countries while relevant trainings on the use of models should be made mandatory by the Nigerian Institution of Estate Surveyors and Valuers so as to enhance surveyors knowledge in the areas of development valuation processes.
[Full Text:PDF]
© Journal of Scientific and Engineering Research
Frontier Theme