The response of Nigerian valuers to increasing sophistication in investors' requirements

• Published in: Journal of property investment & finance 2007-01, Vol.25 (1), p.43-61
• Main Authors: Ogunba, O.A, Ajayi, C.A
• Format: Article
• Language: English
• Subjects: Accuracy; Decision making; Developing countries; Institutional investments; Investments; Investors; LDCs; Methods; Nigeria; Portfolio management; Property; Property values; Rationality; Real estate; Risk assessment; Studies; Trends; United Kingdom; Valuation
• ISSN: 1463-578X; 1470-2002
• DOI: 10.1108/14635780710720162

Purpose - The purpose of paper is to show how the changing property investment landscape in the past 40 years - for example the new requirements of valuation accuracy, rationality and the risk analysis, etc. - requires a corresponding response from property valuers (academia, professionals and regulatory institutions) in technique development. The issue has however not received sufficient examination in African real estate literature. This study aims to address the concern with a focus on Nigeria.Design methodology approach - The paper reasoned that the process of Nigerian technique development and assimilation into practice could be motivated through a study of issues that triggered off transition towards sophistication in the parent valuation profession in the UK. Accordingly, the paper worked out a seven-stage model of UK valuation transition in the past 40 years, and used this in diagnosing the level of progress achieved in the Nigerian valuation Industry in the areas of accuracy, rationality and risk analysis.Findings - The results showed that technique development of is presently largely restricted to the valuation academia, which has been making attempts to persuade practitioners and regulatory Institutions to higher sophistication. Generally, the paper diagnoses the Nigerian valuation profession as being in the second of the seven-stage process of movement towards investor-focused transition in the UK.Practical implications - The paper shows that the way forward for Nigerian evolution was seen to require a strong research base on the part of the regulatory Institutions which should result in the building of awareness, refinement of textbooks, empowerment of valuers and development of valuation standards that meet modern requirements of investor sophistication.Originality value - This paper is the first to classify the development of investment technique within academia and practice in the UK for the purpose of identifying how far behind the developing markets are.