ESTATE SECURITY AND ITS EFFECTS ON PROPERTY VALUE
ABSTRACT
It is an understatement that security remains one of the principal challenges bedeviling the nation’s real estate. Also as crime and insecurity in estates and its environs keeps mounting daily, there is need to make estates, its dwellers and their properties safe. Therefore it’s on this premise that the study examined the effects of Estate Security and Its Effects on Property Value; Taking Ikot Osurua in Ikot Ekpene Local Government Area as a case study. Then the following are the objectives of the study: To determine whether estate security affects property value, To determine whether estate owners should put the necessary security measures in place in their estate, To determine whether estate tenants make estate security a major criteria before choosing the apartment, To determine who provides security in an estates. The sample of 100 respondents was drawn from the population parameters. A total number of 64 completed questionnaire representing 64% of the distribution made were retrieved from the residents and house owners (landlord) respectively. In analyzing the data collected for this study, descriptive and analytical research method was adopted to analyse the data. The study revealed that security is a major concern in the mind of accommodation seekers, as they take into consideration the security of the estate before making plans to live in such accommodation. Also the research shows that students living in Ikot Osurua do not mind paying a high amount for an accommodation that is secure. This work concluded that the level of security or lack of security of an estate affects property value. Therefore the work recommended that the government should provide the necessary platforms like electricity and security agency to boast security in these estates and estate investors should prioritise security in their estates so as to secure optimum return on the estate investment.
TABLE OF CONTENTS
Title Page – – – – – – – – – i
Declaration – – – – – – – – – – ii
Approval/Certificate – – – – – – – – – iii
Acknowledgements – – – – – – – – – iv
Table of Contents – – – – – – – – – v
List of Tables/Statutes – – – – – – – – vi
List of Figures – – – – – – – – – vii
Abstract – – – – – – – – – – viii
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study – – – – – – – 1-2
1.2 Statement of the Research Problem/Gap Founds – – – – 2-3
1.3 Aim and Objectives of the Study – – – – – – 4
1.4 Research Questions – – – – – – – – 4
1.5 Scope of the Study – – – – – – – – 5
1.6 Significance of the Study – – – – – – – 5
1.7 Location of the Study – – – – – – – – 6-7
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction – – – – – – – – – 8
2.2 Theoretical Survey – – – – – – – – 8-9
2.2.1 Theory of Defensible Space-An Alternative to Fear – – – – 9-11
2.4 Empirical Frame Work – – – – – – – 11
2.4.1 Doctrine of Residential Real Estate – – – – – – 11-12
2.4.2 Estate/Home Security – – – – – – – – 12-14
2.4.3 Gated Communities – – – – – – – – 14-16
2.4.4 Home Security and Housing Value – – – – – – 16-17
2.5 Summary of Literature – – – – – – – 17-18
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design – – – – – – – – 19
3.2 Population of the Study – – – – – – – 19
3.3 Sample and Sampling Techniques – – – – – – 19
3.4 Research Instrument – – – – – – – 19
3.5 Validity and Reliability of the Instrument – – – – – 20
3.6 Data Collection Procedure – – – – – – – 20
3.7 Technique of Data Analysis – – – – – – – 20
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation and Analysis – – – – – – 21-23
4.2 Data Analysis – – – – – – – – – 23-29
4.3 Summary of Findings – – – – – – – – 29-30
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Discussion of Findings – – – – – – – 31
5.2 Conclusion from Findings – – – – – – – 31
5.3 Recommendations – – – – – – – – 32
Appendix
Reference
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Urban and rural criminality rate relating to insecurity keep mounting daily, mostly across some developing cities and towns. With a continuous growth in housing cost and demand, it is expected that secured properties be stimulated to ensure a comfortable and liveable environment for the masses. This however remains one of the principal challenges bedeviling the Nigerian real estate sector, which then reduces individual’s desirably of home ownership and in most cases diminishes the rate of return on property investment.
Estate security in developed and developing nations is a non negotiable in any residential, commercial and social estate. Whether it is access control of the gate, electric, fencing with cameras or guards patrolling, families or individuals occupying these estates feel secured in the knowledge they are protected against almost any calamity.
But how secured are these estates really? Downing (2007) warned that the security many people rely on to protect their homes and families may in fact not be good as they wish”. In other words, the importance of keeping a home, its occupants, and its valuables safe and secure cannot be overstated, yet the challenges of effective security strategies can be time consuming and stressful for some home owners. Though some may choose to work through this difficulties and develop home security measure on their own, others may find it preferable to work with a professional company that specializes in preventing and responding to burglaries and other potentially damaging events (Seldon, 2007).
Essentially, how safe an estate is, is not just keeping people or criminal out of your house, It’s about protecting the things that are valuable to you, including your children, personal information and properties, valuables and all of things that matters most to you. Therefore the aforementioned indices of estate security and its effects on property value has engendered estate owners and occupants considering home security system, this ranges from simple to sophisticated. This has to do with the level of development, economic ability of house owners or house user. Over the years, various systems have been used to provide security for home, this include, vigilante, trained dogs, high fencing, charm, thermal cameras, alarm systems, fire alarm, surveillance tools and wire etc.
The presence of all these and more of security measures put in place, the more desirable the property is to property or accommodation seekers. And in the event of the lack of these security measures the lesser the desirability of the estate and the lower the returns and value the estate commands.
1.2 STATEMENT OF THE RESEARCH PROBLEM/GAP FOUNDS
The high rise of estate insecurity and criminality in our cities and rural areas still stands tall as one of the problems estate owners and residents/citizens face. As the cost of housing or producing an estate rises, so is the demand for a secured and safe housing. Considering the high cost of purchasing, installation and maintenance of residential home security systems which ranges from simple to advance, different security systems have emerged over time and as events unfolds that threatened the capital returns expected from estate management. To this end, different security systems have been seen as a panacea to this problems; ranging from: high electric fencing, vigilantes, 24 hours security guards, home automation, fire/back to base alarm systems, panic buttons, charms, surveillance equipment and wire spikes floor and water sensors, CCTV monitors, and any type of anti intruder perimeter control systems (Radetskiy, et al 2015). This however has not been fully employed in cities and rural areas owning to procurement, installation and maintenance cost. (Adibola, et al 2011) noted the inefficient security problem within the length and breathe of our society and environment which has resulted into numerous crime acts, loss of lives and properties.
However, the insecurity level in our estates and our communities cannot be over mentioned without been traced back to the early military rule ages when bulky quantities of quality weapons were shipped into the country for military uses during the civil war. Some of this weapons however were high hacked by the civilians and then became tools for mischievous acts shortly after the war such as; robbery attacks, killings of innocent minds and ritualism which is high across the country (Olabanji and Ese 2014. Worthy of note is the 1999 constitution’s provision for citizens right which has been distorted due to government’s incapability to curb insecurity thereby leading to religious vehemence, communal clashes and crime not just at the national level but more significantly at the state/local level, where innocent lives are daily destroyed. This has made some residential property owners vacating their comfort zone in search for a secured environment which are less comfortable. More so, it was observed that some fully furnished apartment across states and local governments most especially Ikot Osurua in Ikot Ekpene Local Government Area are scarcely occupied owning to the rate of crime which then affects developers profit and loan transaction. This menace has also kept students living in this community away from coming home late or going out late at night and participating in some social activities in the student area; for fear of being robbed, harassed by cultists and miscreants.
Consequently, having the fear of crime with respect to personal safety especially when lonely and in the dark has caused the general friends of high walls construction with gate and bark wires construction around housing units. Such high walls together with other security measures like construction of huge walls, burglary proofs, installation of lighting amenities across housing environs with strong locks gives credence to this. In essence this sometimes barricade such building’s beauty, this suggest that the current Nigeria city’s and rural estate’s architecture is governed by the fear of crime and robbery attacks.
1.3 AIM AND OBJECTIVES OF THE STUDY
The aim of this research is to evaluate the effects of estate security on property value; to achieve this aim, the following are the objectives of the study:
- To give comprehensive insight to the extent at which security affect property value.
- To determine what security measures estate owners put in place in their estate.
iii. To determine what security criteria tenant consider before choosing
- To give comprehensive insight on the role of property owner in providing security in an estate.
1.4 RESEARCH QUESTIONS
- To what extent does estate security affect property value?
- What level of security measures does the estate owners put in place in their estate?
- What security criteria does the tenant consider in choosing an apartment?
- What is the role of the property owners in providing security in an estate?
1.5 SCOPE OF THE STUDY
This research is limited to the examination of estate security and its effects on property value, in Ikot Osurua, Ikot Ekpene of Akwa Ibom State, Nigeria. Ikot Osurua in Ikot Ekpene Local Government Area has the fastest growing needs of estate (accommodation or lodges) which is secure and safe for students to live; this is because of the presence of polytechnic situated in the community.
Ikot Osurua is basically students dominated area because of its close proximity to the academic institution.
1.6 SIGNIFICANCE OF THE STUDY
Estate security and its effects on property value can no longer be ignored or swept under the carpet. This is because, as the need for accommodation, sophiscated, well planned and more expensive estate increases; the need to also ensure the protection of lives, properties and returns on investment in these estates are equally necessary.
The significance of this research is: to access the rate at which the security of an estate affects property values in Ikot Osurua students lodges. To students who may want to embark on research in this area in future, this research work will serve as a major source of references and material for them.
In summary, this work would add to the existing body of knowledge, the study will also throw more light on the important of security in estate and how it influences tenants decision, and most importantly, how it affects property value.
1.7 LOCATION OF THE STUDY
Ikot Osura is a village in Ikot Ekpene Local Government Area, located in the North western part of Akwa Ibom State. Ikot Osurua which is basically dominated by students (indigenes and non indigenes) of Akwa Ibom State Polytechnic sited in the community, Ikot Osurua is an Annang Community.
It has a coordinate 704300.12” and latitude of 126m above sea level. It has a area of 40sqm (200km2) land mass of 20sqm with time zone of WAT (UTC+1) summer (DST) source, (2006 census).
The community is located on the A342 high way that parallel the coast, between Calabar to the South East and Aba to the West with the local government capital being Ikot Ekpene. Ikot Osurua, probably more than any other community was seriously impacted in the Biafran civil war, the community has great historic importance.
POPULATION: The population of Ikot Osurua is not certain because it is a mixture of students and the indigenous populace which varies from one academic year to the other. But according to 2006 Nigeria census, Ikot Osurua community of Ikot Ekpene Local Government Area had the following:
Male: 7,004
Female: 8,472
Total: 15,476 source (2006) national census
LAND USE: Ikot Osurua in Ikot Ekpene Local Government Area is known for the academic institution sited in the community known as the Akwa Ibom State Polytechnic, so to this end this has led to large immigration of people, business activities, economic activities estate investors, religious activities, economic activities estate investors, religious activities, social activities etc into the community. Most importantly this also has led to the massive purchase of communal land by estate investors for the building of lodges land by estate investors for the building of lodges for students habitation.
The local populace also engages in agricultural activities, and other petty business etc. community markets are sited in the community in order to help the students and the indigenous populaces other structures that can be found on this land are churches, village hall, nursery and secondary schools etc.
