Valuers’ perception of the Relative Influence of Sustainability Features in Nigerian Property Valuation

Adebola Adeyemo

Adebola Adeyemo University of Ibadan, Ibadan, Nigeria

Keywords: Valuers, Perception, Property Valuation, Sustainability Features, Lagos

Abstract

Purpose- This study explores the perceptions held by Estate Surveyors and Valuers (ESVs) in Lagos regarding the influence of sustainability features (SFs) in property valuation and also ascertains if the influence differs in residential accommodation and commercial office space valuation.

Methodology- Multiple choice and Likert scale questionnaires were randomly administered to 198 valuers representing 50% of the ESVs in Lagos as contained in the current NIESV directory. To ascertain their perception and determine variations in influence across the two property types, ranking was done on a Likert scale of 1-5 and paired sample t-test was used respectively. The data obtained was analyzed using descriptive and inferential statistics.

Findings- Access to transportation emerged as the highest-rated sustainability feature (SF) influencing residential property valuation with a mean rating of 4.14, followed closely by durable materials (4.02) and space efficiency (3.81). Commercial properties mirrored nearly the same perception, with access to transportation, use of durable materials, and space efficiency receiving mean ratings of 4.19, 4.07, and 3.9 respectively. Findings reveal a calculated emphasis on location, material quality and cost which contradicts Western prioritization of energy efficiency. Nine out of the 26 sustainability features emerged with p-values less than 0.05 establishing a variance on the influence of some sustainability features across the two property types. Notably, there is a perceived higher influence of these SFs in residential property valuation.

Research limitations- The issue of reluctance among the target population to allocate sufficient time for survey participation is a major barrier, leading to a retrieval rate of 58%.

Theoretical/Social/Practical implications – The findings bring to focus the considerations that can shape property valuations in Lagos. Ultimately, the incorporation of a sustainability premium into rental or capital valuation will provide valuable insights for developers, policymakers and other investors in sustainable buildings.

The originality/value- This study has established a localized perspective of the varied influence of sustainability features in residential and commercial property valuation in Lagos, Nigeria.