The Influence of Consumers Behavior on the Variables Determining Residential Property Values in Lagos, Nigeria

Abstract

The objective of this study was to assess the influence of consumer behaviour on the variables determining residential property values in Lagos metropolis and how Nigerian valuers are incorporating these in their valuation exercise. The survey which was carried out within a period of three months (January, February and March 2006) involved buyers and valuers which participated in the sales of some properties within Lagos Metropolis. These buyers and valuers were asked to rank on a 4-point likert scale; the relative importance of each of the property attributes which affect the price of the property as perceived by them. The significance of each attribute was then assessed using Relative Importance Index (RII). The significant difference between the ranking of the buyers and valuers was assessed at each variable level and when all the variables were combined using the Kendall test of concordance and tested at .05 level of significant using chi- square approximation. Regressing the attributes of each property against the actual property paid, the significance of each attribute was determined; which was then compared with the ratings of both the valuers and the buyers. The study revealed that the methods of valuation used by the Nigerian estate surveyors and valuers do not take into consideration the buyers preferences in the assessments of residential property value.