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Weekly UpdatesAs a result of the foregoing, it is considered that the following need to be addressed for the Nigerian property market to move forward and benefit from the ever changing global trends in the profession.
There is a clear need for improvement in the recording and availability of transaction data individually as institutional property company and collectively as a profession. There is need to ensure a speedy actualisation of the current efforts of the Nigerian Institution of Estate Surveyors and Valuers aimed at ensuring the compilation of historical and time series data or centralised database in Nigeria. This will allow a near accurate comparative analysis at national, regional and metropolitan/ local market levels. A move towards this maturity will mean that a micro-real estate specific data derived from local markets information could be used to develop property transaction and performance indices. Also, the present secrecy and confidentiality attached to property transactions data should be relaxed to allow for a comprehensive data to be collated and analysed on a continuous basis.
To encourage a speedy growth in the size of property companies' portfolios, it is considered necessary that government should create enabling environment for the operation of finance sources such as securitisation and unitisation to ensure availability of long term capital for real estate investment. These methods have been the global trends for mobilising long-term funds for rapid and sustainable real estate development.
It is also considered that the Estate Surveyors and Valuers Registration Board of Nigeria (ESVRABON) in conjunction with the Nigerian Institution of Estate Surveyors and Valuers (NIESV) should come out with guidelines on real estate portfolio diversification practice to ensure better diversification practice and uniformity of approach. The guidelines should be such that encourage a comprehensive property portfolio appraisal system and encourage the use of quantitative/analytical approaches in diversification evaluation especially in the long run. A guideline committee should be saddled with this responsibility.
It is also suggested that both the Estate Surveyors and Valuers Registration Board of Nigeria and the Nigerian Institution of Estate Surveyors and Valuers on one hand, and our educational institutions on the other, must assist in closing the gap in real estate portfolio diversification theory and practice in the country. To achieve this, the education of those currently being and yet to be trained practitioners requires that the curricula of our educational institutions of higher learning should provide opportunity for estate management students to be trained on MPT based quantitative diversification analysis at the undergraduate level. The education of those currently in practice requires that refresher courses should be organized through continuing development programmes. All market players need to be reminded, through seminars, conferences, workshops and lectures, that they cannot restrict themselves to conservative approaches in the property industry in this growing analytical world which is fast becoming a global village.
Received 20 November 2006; accepted 30 August 2007
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Abel OLALEYE Department of Estate Management, Obafemi Awolowo University, Ile-Ife, Nigeria E-mail: a_olaleye2000@yahoo.co.uk
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