ANALYSIS OF FACTORS INFLUENCING PRIVATE REAL ESTATE DEVELOPMENTS IN THE PERI-URBAN AREAS OF BIDA, NIGER STATE

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ABSTRACT

Peri-urban is the transition zone between well organized, recognized urban land uses and areas devoted to agriculture. The study examined the trend of private development across the peri-urban area of the town. the study administered 400 closed ended questionnaires and the total of 235 questionnaires were retrieved through random sampling technique. The study utilized both descriptive and inferential method of data analysis as well GIS tool. The result of analysis of GIS revealed that there is continuous sprawling in residential land use development in peri-urban area of Bida. Also the spatial analysis of the area revealed that there is an overlapping function in land use where agricultural land use area continues to be substituted for residential land use. the result of mean revealed that three major drivers of peri-urban development   to includes urban expansion, large scale public investment and availability of social amenities and were ranked in order of relative importance 94%, 93.6% and 92.6% respectively and the factor analysis revealed 76.145% of variability in the identified twenty-two (22) factors influencing peri-urban development comprised of eight important factors influencing peri-urban development such as neighborhood factor, environmental and market factor, physical infrastructure factors, communication networks and security, urban factors, migration and low labor price, community service factor and climate and planning factor. The study concludes that urban sprawl will continue to emerge unless certain factors that influence peri-urban development are addressed and study recommends that building specification and development of master plan that specified various land uses should be embarked upon by the government.

CHAPTER ONE

1.0       INTRODUCTION

1.1       Background of the Study

Peri-urban is the space in which the town extends as a result of the process of urbanization. It refers to the transition zone between well organized, recognized urban land uses and areas devoted to agriculture (Ayorinde,2009). Most agricultural activities are carried out under green house micro environment establishments since the rainfall of the area is unreliable. In the truest sense of a peri-urban area, an area into which there is an overlap between residential and agricultural activities. The pastoral community is largely the suppliers of land for sale and the fact that they too are embracing property development as an alternative economic activity through availing land for sale and being involved in private property development in the occupier capacity is proof that construction activities are not the preserve of the incoming settlers only (Adair et al., 2007).

Adjekumhene (2002) the concept of ‘development’ is a multidimensional one which can be viewed from many perspectives. The study explained “land development” to mean ‘a broad subject encompassing the development of natural areas to redevelopment of occupied land or derelict sites’. In his view development in this context means any kind of engineering or building work carried out in, on or over land or any material change of use of land. In support  of  this  definition  and  for  the  purposes  of  this  study,  ‘land  development’  is considered as any kind of physical developments that change the original use of the land (Broni, 2002).

Property development is process that involves change in intensifying the use of land to produce buildings and such an undertaking requires land. Balchin et al. (2001) profitability and utility are largely determined by accessibility such that the greater the accessibility of a location (and the lower the net economic cost of movement in terms of distance, time and convenience)  the  greater  the  comparative  advantage  and  the  greater  the  demand  for property in that location and the higher the level of development (Ebohon et al., 2002).

The developments in Bida Township are dominated solely by residential and little commercial activities and are in total disregard of social, aesthetic and environmental long- term impacts on the areas’ inhabitants. Private developers dictate pace of physical developments in this township. This has resulted in high densities, overcrowded housing, insanitary conditions, environmental pollution, diminishing open spaces pressure on infrastructural amenities and haphazard peripheral development (Kazungu et.al 2011). Changes in peri-urban areas is majorly constituted of real property development, which formally is a predominant agricultural town now turned into a real estate town where such aspects concerning the unrestricted development of commercial and residential properties in contravention with the urban planning procedures. As a result the supply of waste management procedures, public water and well maintained access roads network was found to be inadequate largely due to the freehold ownership of land in the area (Muiruri, 2001).

Middle income earners either develop their own residential property or rely on private residential property developers to build rental apartments and homes which they buy or rent at the market selling rate (Brook & Davila, 2000). These individuals are able to live in a peri-urban town and work within city since they can afford. They constitute the effective demand for private residential property developments without considering supportive infrastructure such road, water supply, drainage and waste management in the area.

Regardless, private development has some advantages such as the developer having the sole  responsibility over  the development  resulting in  quick  decision  making,  effective administration and rapid completion; the developer is competitive in his approach since he bears all the risks attributed to the investment and he is therefore profit motivated (Acheampong  &  Anokye,  2013).    However,  an  associated  disadvantage  is  that  the developer cannot change the existing layout of roads in order to produce a better development thus they either conform their developments to specified road structure or enlist the help of the local authority in modifying it.

However, Bida has experienced sprawl development over the years especially from 1999 third republic where the country experience massive development across the states. This sprawl development has emanated from town into peri-urban and most of these developments are privately owned, and the peri-urban area has been characterized with lack of planning and basic infrastructure. It is on this basis that this study looks into activities of factors influencing private estate development in peri-urban areas of Bida with a view to identifying the major drivers of peri-urban development.

1.2       Statement of the Research Problem

Peri-urban development area of Bida is characterized as strip and nodal physical development which has not occurred under planning control, with haphazard developments in Bida that spreads outwardly to peripheral. This is precipitated by increasing demand for shelter, physical and social infrastructure, ineffective physical planning systems, informal investment finance and speculative land costs has resulted in high densities, overcrowded housing, insanitary conditions, diminishing open spaces, and haphazard peripheral development (Kazungu et al 2011).

The private property developers in the town take into account various key indicators of the viability  of  investing  in  construction  development  against  other  feasible  investment ventures. These key indicators are effective demand, availability of land and finances, the aspects  of  labor  and  materials  and  their  effect  on  construction  as  well  as  how  the availability or lack of infrastructure has affected the private property developer (Muiruri, 2001). Also, most the peri-urban development in Bida area is dominated by majorly by residential activities with total disregard of social amenities, aesthetic and environmental long-term impacts on the areas’ inhabitants; and private developers become   dictators of pace of physical developments in the study area.

Moreover, the private property developments be they commercial, residential, institutional and the like occur side by side with no indication of any development planning procedures effected such that incompatible land use activities are adjacent to each other (Mutisya, 2008). The problem of poor infrastructure development is as a result of low income neighborhoods in peri-urban is not specific but a prevalent problem in Kenya which adds to the costs of construction. Also, the Problems of poor drainage facilities and poor waste disposal procedures make the town at best unsightly and smelly especially in the market areas such as Ibadan due to decomposition of organic matter (Ayorinde, 2009). These problems are not different from what has been observed in the study area. The drainage and waste disposal facilities are not adequately provided in the study area by the local authorities, most private developers have not made their own provisions for such services adding to the costs of construction and long route.

Despite the above outlined problems that make construction development less attractive for private developer, the growth of the construction activities in peri-urban area of the town is unrelenting and private developers still see the advantage of such an undertaking. The factors that encourage such development and the relative significance of the same are the major focus of this study with respect to private residential property developers both in large and small scale capacities.

1.3       Aim and Objectives

The aim of the study is to analyse the factors influencing private real estate developments in peri-urban areas of Bida.

Objectives of the study include:

1.   To identify the types of private real estate development in Bida peri-urban

2.   To examine the drivers of peri-urban development in Bida.

3.   To assess the factors influencing private real estate development in peri-urban area of Bida

4.   To  examine the spatial distribution of private development in peri urban area of Bida

1.4       Research Questions

1.   What are the types of real estate development properties in Bida peri-urban?

2.   What are the drivers of  peri-urban development in Bida?

3.   What are the factors influencing private development in peri-urban area of Bida?

4.   What pattern of spatial distribution does private development exhibit in Bida?

1.5       Justification of the Study

This study is tailored towards analyzing the peri-urban development in term private estate development in Bida area of Niger state. The study thereby looks into both positive and negative factors that affect private property development specifically residential development in satellite towns of Bida peripheral.    The study is grounded chiefly on the development cycle and the theories that determine residential location and development. the study is justified on the ground that previous studies have explored similar concepts but concentrated their research elsewhere, for instance, Muiruri (2001) studied real property development changes in peri-urban areas Nairobi, the study found that unrestricted development of commercial and  residential  properties in  contravention with the urban planning procedures, this study could not address other factors affecting developers in peri- urban area which this study intends to address.

Mutisya (2008) evaluated the sustainability of the residential housing developments in rapidly growing satellite towns in Kenya. The study found out that 60% of the developers of the developers understood the concepts of sustainability as defined in the study and that 80% of the structures developed constituted structurally sustainable materials, that majority of the structures actually had access to water supply, drainage facilities and electricity, this fails to look into planning and nature network of road which this study intends to address. Ayorinde (2009) studied the private property development in peri-urban in South Western Nigeria (Yoruba cities) the study discovered that physical developments in the peri-urban areas of Ibadan is characterized by a mixture of residential developments, agriculture, forestry, and exhibited weak and ineffective planning control, and further stated that this finding  is  not  different  from  those  in  the  north,  only that  they have  high  population densities  even  in  the  rural  villages.  This  study is  considered  inadequate as  it  fails  to spatially look into sprawl in peri-urban area, this justifies this study as it tends to address These studies fail to look into spatial nature development and factors affecting private estate development, which this intends to address  Therefore this study will extend existing knowledge of property development  in  peri-urban  areas  because these  factors  may be uniquely preeminent in the area. Also, differences that may arise may point to a refinement of the consideration of private property development in peri-urban towns.

1.6       Significance of the Study

The importance of this study to the various land stakeholder can be overemphasis. This study will enable the identification of the more significant factors amongst those outlined so as to enable future property developers in the area be mindful of them in an effort to develop property knowledgeably, saving on finances especially if these factors prove to be of financial importance. In so far as academia is concerned, this study will bring to light those key development factors facing developers in the study area, the extent to which each factor is significant, whether development is affected by all factors acting jointly and how their impacts can be mitigated.

The results of this study rather than only arming the residential property developer with key information with which to make investment decisions, will enable developers to take into account the recommendations put forth especially regarding materials and labor factors to tailor their development agenda with the reality of the area to accrue value and benefits rather than rely solely on unverified suppositions concerning their acquisition and costs. With respect to land acquisition, the study will no doubt emphasize that the procedures for land ownership or leasing be hastened by the local lands office so that the infestation of the middle men who unnecessarily make the process more expensive through corruption and delays can be rooted out to save developers time and encourage would be real estate investors in the area.

1.7       Scope of the Study

The study covers the geographical location of Bida peripheral areas, the study covers the all types and nature of private estate development in the peri-urban. More importantly looking into factor affecting the development of private real estate and critical analysis of peri- urban development in term of housing supporting infrastructure in the area is major focus of the study.

Furthermore, the purpose of this study is to identify drivers of peri-urban development and factors influencing the demand for peri-urban that necessitates increase in private estate development, with particular reference to  availability or lack of of infrastructure, labor and material acquisition, availability of funding both in the long term and the short term and availability of land affect the development choices of the private property developer and how this individual surmounts these limitations to develop residential property tailored for the middle income earner, who constitutes majority of the effective demand.

The central concepts outlined above will be studied extensively to identify whether they all jointly affect the private residential developer, whether any of the key aspects is more relevant than the other and why.

1.8        Study Area

1.8.1   Historical Development of the Study Area

Bida is  a traditional  town  in  Nigeria,  a successor  to  the old Nupe kingdom,  with  its headquarters in Bida, Niger State. The head of the state is the leader of the Nupe people. Also, the old Nupe kingdom was established in the middle of the 15th century, in a basin between the Niger and Kaduna rivers in what is now called the central Nigeria. Early history is mostly based on verbally transmitted legends. King Jibril who reigned around 1770, was the first Nupe king to become Muslim, so came the EtsuMuazu who brought the kingdom to its period of its greatest power, dying in 1818. During that period, the Fulani were gaining power across Northern Nigeria. After Muazus death and during subsequent wars of succession, the Nupe kingdom came under the control of the Gwandu emirate, Masaba, son of the Fulani leader, MallamDendo and a Nupe mother gained power in 1841 (Mohammed, 2014).

During Masabas reign, the Nupe kingdom grew extensively, Masaba residing first in Lade and later in Rabba conquered the Kamaku in the north, the Gbari in the east of Kakanda in the south, he however entrenched himself firmly on the Yoruba side of the Niger, snatching the country from the Fulani cheifs who had gained a foothold there (Mohammed, 2014).

1.8.3    Geographical Location

Bida is Located on 9°05′N, 6°01′E, 9.083°N, 6.017°E, Coordinates (see Figures 1.1, and 1.2). The local government is located on A124 highway (a regional road) linked Ilorin to Minna and Abuja. The LGA has an area of 1.698 km². Bida is the second largest city in Niger State. It is located southwest of Minna, capital of Niger State, and is a dry, arid town.

A typical middle belt region, Bida emirate experiences distinct dry and wet seasons The wet season, which lasts for about 200 days starts from April to October. Average rainfall is 122.7mm with July and September recording the highest rains of 226.3mm and 248 8mm respectively. The weather at this time is humid. The cold dry harmattan winds usher in dry season which gradually becomes hot between March and May, lust before the rains set in the monthly temperature is highest in March at 313c and lowest in August at 26.0oc. Bida emirate is thus blessed with moderate climatic condition throughout the year (Niger State Government, 2015).

An area of hills and valley occur some three to four kilometers west of the present built up area. Occasional small steep hills rise 20-25m above sea level and the well drained gutter slopping between the valley. Most gradient are around 1:40 part of mesas and along the edge of the valleys north and south of the Town. The southern valley does not pass as far as to the west as the river Gbako forms a barrier and the whole area between the valley and the hill measures some 100sqkms. The Town is drained by landzu streams which flow across the heart of the Town with its other seasonal tributaries that are today guily routes.

1.8.2    Population

According to the 2006 National Population Census, Bida Local Government Area has population of 188,181 with 3,764 population density. The population of the Local Government was projected to 219,940 people in 2011.While there are pull factors in the area, the population is expected to double its number in the year 2021.

1.8.4     Administration

The creation of additional local governments on 19th September, 1991 gave birth to five (5) local governments in the State; Bida became the Local Government headquarters of the newly created Bida Local Government Area (Niger State Government, 2007). Bida consist of 14 administrative wards namely; Masaga A, Masaga B, Masaba A, Masaba B, Wadata, Kyari, Cheniyan, Mayaki Ndajiya, Landzun, Dokodza, Bariki, UmaruMajigi A, UmaruMajigi B and Nasarafu  wards respectively (Niger State Bureau of Statistics, 2012).

Bida is the headquarters of the Nupe Kingdom led by the EtsuYahayaAbubakar and consisting of many districts, such as  Katcha,  Lapai, Mokwa,  Enagi,  Baddeggi,  Agaie, Pategi, Lemu, Kutigi, and others. The leadership style of the ancient town of Bida is emirship, and the head of the town is addressed as Etsu Nupe (Niger State Government, 2015).

1.9       Limitation of the Study

The following are the limitations which may have likely affected the comprehensive and adequacy of the findings of the study:

1.   Lack of accessibility to the master plan in the peri-urban area in order to establish compliance level.

2.   There is limitation to documents on the number of approved development and non- approved development at local development. This would have enable to know the number of properties that complied with master plan if there any.

3.   There is inadequate transportation facilities which would enable the researcher to access the outer peri-urban to gather more information.



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ANALYSIS OF FACTORS INFLUENCING PRIVATE REAL ESTATE DEVELOPMENTS IN THE PERI-URBAN AREAS OF BIDA, NIGER STATE

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