Project – Examining the factors affecting property development in Kaduna metropolis

CHAPTER ONE

INTRODUCTION

Background to the study

The substantial academic account of what typifies the property developer has still to be written, Adams (2012). Property development attracts a significant amount of attention in many contemporary arenas, and is often seen as the realm of remote and archetypal figures who can spawn grandiose and inappropriate building forms, sometimes against the wishes of the authorities, planners and public lobby groups who try to control or influence the nature of our built environment. To exacerbate this, property development continues to rely upon more and more in our cities as a means of creation of the built environment. The topic has attracted an enormous spread of interest across not only the real estate realm, from which it finds its foundations, but in a range of areas of academic enquiry through disciplines including economists, political economists, and urban theorists, social and institutional theorists. Whilst in the commercial, residential, agricultural arenas of real estate both corporate and other, the topic is covered through arrange of different disciplines across real estate, valuation, business, financial, marketing and many others Drane (2012). The nature and extent of attention from 1954 to 2012 related to models of the development process, however, reveals that there has been a paucity of coverage of the topic since 1992 in the academic literature, and a low level of engagement by business related authors. This leaves an apparent lack of finance, development control and government policy which crosses integration, that could otherwise inform a contemporary model of development practice. The study noted surveyed the realms of academic related to property development process without discrimination as to the source, geography, sectors under study, or discipline of authors. Building on that study, this research revisits the relevant findings and offers a potential way forward for the creation of contemporary model of development practice. This is achieved by both revisiting and building on past model and introducing an embryonic philosophy and model for a distinctive theory of property development. Before commence however, it is perhaps helpful to actually define property development which formed the foundation of the survey, and which in itself has been (as will be shown within) the subject of limitation due to the extensive complex nature of the topic, and the visors that have been used to view it. Real Estate development involves putting land into more profitable uses by construction of building, alternation of existing structures to enhance efficiency in their presence to meet changes in task and demand. Property development may also take the form of a positive consideration of immovable of properties like land, farmland, building and any structure erected on land from lower use to higher uses.

Property development is seen as the carrying out of building engineering, mining, or other operations in, on, over or under land for the making of any materials changes the use of building or other land section (12)(2) British Town And Country Planning Act (1947).

Development can be seen as to include any building or rebuilding, rehabilitation, renewal, replacement or maintenance operations and any use of land CAP155 of Nigeria Planning Law (1948)

Perhaps, nothing encapsulates this the history of a country, state or community as the physical growths and property development does. It is this in all its manifestation that capture the factors that influencing property development in Nigeria because it is the history of its physical development that tells, for instance, how and when the various component come to be, why they come to be, who were responsible for them and in what circumstances, what purposes they served in the past or are serving now.

The built environment is indeed a manifestation of history. It is a historical record, however, it is in the process of the development of the various real properties which makeup the built environment that the various paragraphs and chapters of this developments are composed. Property has been known to be a major components of development creating stable and healthy communities and it is often the largest single category of household expenses. High inflation rates and nominal interest rates as witnessed in Nigeria are factor affecting property development which this factors have strong effects of reducing the affordability of mortgages. A volatile economy also affects the supply of funds in the process of property development.

Government requires strong financial institutions intervention in the property development process in terms of favorable policy drafting and implementation. During the course of this research work, it was also discovered that the factors influencing property development in Kaduna metropolis includes: land acquisition, high cost of land, high cost of building materials, crisis also affect property development and inadequate of financial institution(access of loans) and other related factors such as legal issues, environmental issues etc. property development is usually triggered off  by an increase in size of the number of users which make demand for property positive.

A boom in the economy of the country (government policy) is another factor that affecting property development in this country especially Niger Delta and Kaduna state(Rido village) for instance in the early 1970s during the era of oil boom, composition of the population. Creation of Kaduna State in 1976(42yrs), it has experienced series of dramatic physical and socio-economic development within the establishment of many industries, ministries and palates all of which have influenced on the growth of property development and values in the city. Real Estate Journal by Yakubu (2013).

Property development incorporates a scope of exercises from the buy of area advancement of facilities and structures to meet client pre-requisites. It additionally incorporates either the deal or rent of the place that known for properties on fruition. Designers by and large facilitate the exercises changing over arrangements, needs, and thought into property. Property development otherwise called real estate development. Land Engineers are the general population and organization who arrays these exercises changing over thoughts from paper to genuine property. Land advancement is unique in relation to development; numerous designers additionally deal with the development procedure. Santosh (2011).

STATEMENT OF PROBLEM

Kaduna State is a city where population increases day in day out, therefore, property development faced both developmental and managerial challenges such as government policy, development control and other factors influencing property development within Kaduna metropolis. Martins 1989).

Another factor influencing property development is the mode of project organization. The bulk of many property development is undertaken in an atomized fashion by individuals, unlike in more advanced countries where development is usually organized ‘’en-masse’’ by public or private estate s developers who eventually sell the finished products to the end-users (Anthony 1994).

The benefits of this approach are numerous, including standardization and cost-effectiveness. There have been some initiatives in this direction in recent years with varying levels of success especially in Lagos. Regulation and control are major ingredients of planning and property development, and irrespective of how good a plan may be without effective implementation through proper monitoring and control, it is bound to fail. This unfortunately appears to be the fate of much of the urban planning and property development efforts in the count up till date. (Chapin 1990).

Factors influencing property development is indeed a serious indictment of planning and development process for it appears  that  the standard and models adopted for urban centers are faulty because they have consistently failed to reflect or meet the needs people (occupiers), their lives and ways of making their living. The problems are often compounded by the fact that there is usually no coordination between the planning authorities, the property development agencies and the authorities responsible for the provision of these facilities where there is a comprehensive long-term plan. (Cailburn 1988)

Development control has become a factor in the process of property development by which authority mange the extent and nature of growth of development in local areas. Property owners or leaseholders wishing to develop are typically required to apply to the authority (depending on the proposal) for permission prior to commencing any development work. Government policy also affect property development hopefully better guide decisions, resulting in positive outcomes that enhance the community or unit. Aluko and Nwaka (1992)

RESEARCH QUESTIONS

1. What are the factors influencing property development in Kaduna metropolis?
2. What are the procedures of acquiring property in Kaduna metropolis?
3. What are the government policies on property development in Kaduna metropolis?
4. What are the development controls of property development in Kaduna metropolis?

AIM

The aim of this study is to examine the factors influencing property development in Kaduna metropolis.

OBJECTIVES

1. To identify the factors affecting property development within Kaduna metropolis.
2. To assess the procedures of acquiring property in Kaduna state.
3. To examine the government policy on property development in Kaduna metropolis.
4. To identify the development control on property development in Kaduna metropolis.

SIGNIFICANCE OF THE STUDY

This study will be of value to property developers or investors, especially, it will provide basic information to the public and property owners, property developers, contractors, tenants, students and researchers that are seeking relevant information. The fundamental objectives of a prospective property investors or developers is to maximize return while keeping risks and expenses within manageable limits.

This findings will enable the property developer’s investors and relevant knowledge seekers identify the factors influencing property development, consulting the expertise whenever embark on any project of property development and entrusting the investment to the care of professionals for property management and maintenance. This study will also provide basic policy articulation, formulation and implementation for adequate housing delivery in Nigeria.

SCOPE OF THE STUDY

The scope of this study have concentrated on the selected registered estate firms and property developers in the study area; This research  also cover Kaduna metropolis on the factors affecting property development, hence, formulating recommendation in taking the task and facing the challenges therein. Most of the properties in the study area are; commercials property, residential properties and agricultural properties, the study research was conducted within the period of seven (7) months. All information used where derivable from the suitable and reliable sources in ten estate firms of the study area.

BRIEF HISTORY OF KADUNA

Kaduna the first purpose built city of modern day Nigeria is coined from the word ‘’Kada’’ the Hausa word for crocodiles which were common in the river that cut across the town. Kaduna as a state capital of Kaduna state in north western Nigeria on the Kaduna rivers is a trade center and agricultural area, which it is rail and road transport.

The population of Kaduna was at 7, 6084 million) as of the 2006 census, by the Nigeria Population Commission (N.P.C).

Kaduna was created in 1912 by Lord Fredrick Lugard, the colonial mid wife of modern day Nigeria. And became capital of Nigeria former northern region in (1917). Kaduna state is home to the Nigeria defense academy N.D.A (1964), Kaduna polytechnic KADPOLY (1968) Kaduna Ahmadu Bello University A.B.U (2007) Kaduna, Nigeria college of Aviation Technology Zaria, Nigeria Institution of Inpanosomiasis Research (1951) and Nigeria Institution of Transport Technology and Essence International School, Imperial School are also located in Kaduna. I was created primarily as a part of Northern Kaduna now. Is a common political town, people came into it from all over the country as well from other countries.

Kaduna is growing much faster than its master plan the planners did not foresee the changes that have taken place in no short-time. Its growth has been phenomena and it manifests itself in many forms. For instance, the Government Reserved Areas (GRA) which in the colonial days centered on the surrounding Lugard Hall, he expanded to take in a east area, stretching all the way from Ahmadu Bello Way, Sultan Shehu Lamido Avenue, Ungwan Rimi, on the east as well as the Rabbah Crescent, Barnawa New Layout and Borno Road in the North as well as the area from Ribadu Road to Kabala in the Sourth. The high density area have now multiplied drastically they now include; Tudun Wada, Sabon Gari, Rigasa, Kawo, Ungwan Rimi, Kakuri, Sabon Tasha, Nassarawa among others.

Kaduna local government officials estimated that the total land area occupied by the town which was about 28,600 areas in 1965. Also, the population is always increasing. In 1952, it was about 39,000 inhabitants and it rose to 149,000 in 1963 and based on the annual projection of 7% the population has since risen tremendously in 1991 to about 337,637. Also, because of the centrality of the town, the federal government began sitting many of her industries here, its accessibility to all parts of the country and its being blessed with numerous of natural resources and good investment prospective make it of much national interest.

One of failure about Kaduna is that its vital estate activities are aligned along the North and the South axis of the town. Kaduna North runs between Kano and the Kaduna River through Kakuri into Kachia road. At the start British colonial rule in Northern Nigeria the people groups who live in the area became ‘’Northern Nigeria’’ a construct which continues even till date. By 1967, these people groups again were created in the North Central of the state and this was the case until 1975, that Kaduna state was formerly created by the then military leader late General Murtala Mohammed, with a referendum. The state hence is the successor of the old Northern Region of Nigeria, which had its capital to about 6.3 million people (Nigeria census 2006).

It was from the old Northern that in the year 1967, gave birth to six states in the North, caving Kaduna as the capital of North-Central state, whose name was changed to Kaduna state in 1976.

Meanwhile, Kaduna was divided in(1987), creating Katsina state, under the governance of Kaduna, is the ancient city of Zaria, Kafanchan and Nok, the area one of Africa’s earliest civilization is recorded to have excavated. The most intriguing aspects of this area is that the colonial construction and its post-colonial successor call ‘’Nigeria’’ hardly documented the history or the method of how Kaduna state’s people groups encompassed in these constructs define and identify themselves as such the people groups who postulate the area have lived in near oblivious or obscenity as they often are thought of Hausa people, Kaduna town lies within Zaria emirate council. Before the advent of the British, the local population around this town was widely scattered and self-sufficient with virtually no outside communication with the town.

In the 19^th  century, the Fulani’s of  Sokoto caliphate under the leadership of Usman Danfodio conquered all Nigeria with the exception of Borno, even though all the Northern area are conquered including Kaduna, it has little effect on the people of this area. The effect it had on the people are the occasional slave trading and the slow setting of Hausa farmer in the area. Due to the presence of Kaduna River and Tsetse fly expansion toward Zaria, Southern part become very difficult.  But the founding of Kaduna attracted a growing agriculture population of the indigenous Gwari and other pagans’ tribes from Plateau and the penetration of Hausa settlers from the Southern part. In the year 1912, Lord Lugard chose Kaduna to be the administrative and military headquarters for the protectorate of Northern Nigeria.

The main reasons for the choice of Kaduna as the headquarters are;

1. Availability of water from Kaduna River, the river being an important tributary of River Niger
2. Kaduna is centrally located at about the center of thirteen emirates that made up of then protectorate of Northern Nigeria.

• The presence of newly constructed railway lines that linked the Northern and Southern part of Nigeria and

1. Kaduna was then free from political complications.

The town of Kaduna became the capital of North central state in 1966 when twelve states were created in Nigeria; Kaduna remains the capital of the present Kaduna state

Project – Examining the factors affecting property development in Kaduna metropolis