The emerging trend in the global real estate valuation practice has led to the development of advanced valuation approaches to replace the traditional methods. The purpose of this paper is to investigate the extent to which real estate valuers practicing in Nigeria are aware and use these advanced approaches in real estate valuation practice.
Both traditional and advanced approaches were identified from the literature. An online-based questionnaire survey was administered on estate surveyors and valuers to measure their level of awareness and frequency of use of the identified valuation approaches. The feedback was collated and analyzed using descriptive statistical analysis.
The professionals are mostly aware of the traditional methods and always use the “sales comparison method” in practice. In contrast, they are not very aware of the advanced approaches and hence, only use the hedonic pricing model occasionally in practice.
The study only focuses on the Lagos metropolis, a nationwide survey will produce more comfortable generalizable findings.
This is a wake-up call for the real estate regulatory bodies and indeed all the real estate professionals in Nigeria to embrace the use of the advanced valuation approaches in practice, in order to remain relevant in the international real estate practice.
Implementation of the recommendations of this study could help position the Nigerian real estate professionals and the industry for a global exposition.
The authors sincerely acknowledge the Research Grants Council of Hong Kong (SAR), and the Department of Building and Real Estate, The Hong Kong Polytechnic University, Hong Kong for providing financial and material support toward this research. All the estate surveyors and valuers that responded to the survey are highly appreciated. The authors also acknowledge Dr Ernest Effah Ameyaw, Dr Olugbenga Oladinrin and Mr Olalekan Oshodi for their review comments on the draft of this paper. The authors thank the anonymous reviewers who provided helpful comments on earlier drafts of the manuscript.
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