AN EXAMINATION OF THE CONTRIBUTION OF REAL PROPERTY RELATED SERVICES TO GROSS DOMESTIC PRODUCT IN NIGERIA 1999-2010

CHAPTER ONE

1.0      INTRODUCTION

1.1   BACKGROUND OF STUDY

The long standing relationship between a actions economic fining as measured by its gross domestic product (GDP), and real estate investments has been observed and studied over the past century by academicians as well as by provide and public officials to ascertain it extent or degree of contributions to a nation gross domestic products.

Investments are mostly or broadly classified into real estate and financial investments, but of late the distinction between the is gradually fading as both involves the parting with capital or funds with a view of earning income of returns in the future (Kalu, 2010). In other words, both read and financial investment  have effects to a nation’s earning as well as individual personal income. In as much as their nature, mode and surrounding characteristics and condition differs, they both are set to achieve an aim, which is to ensure a positive benefit in the future for the investor (both private and public), and such benefit will some how effect the output and economic standard of the nation.

Real property has been defined as the combination of land and nay permanent stricture or man-made structures or improvements that are permanently attached to the land with the aim of improving that land and enjoying its utilities, amenities and profits or returns (Emoh, 2004).

Real estate investment therefore, is the putting r pasting with funds put into development or acquisition of real estate, an equities in real estate company with a view o receiving future income/rent add or capital apperception. Ra estate is comprised of residential, commercial, agricultural, industrial and recreational properties, as well as base land (Kalon, 2010)

Accordingly, the essence of this work is to ascertain the impact of real properties development towards the nature gross demotic product, its ability to compete with other section of the economy, and general impact towards the economic advancement of the nation. In other words, the essence of the work a research is to examine the contributions of real of properties related service to gross domestic product in Nigeria.                  

1.2      STATEMENT OF PROBLEM

The development of a nation is measured by overall contribution of every segment of human endevours to the growth of its economy. Development is a general world that encompasses all respects of human life, segments and disciplines which give direction to state of an economy. Various sections of the economy that constitute the major determined of national development include health, educational, communication, agriculture, energy commerce and industry, science and technology housing and construction among others. Some of these sectors however are inter-related as happenings in one sectors have multiplying effects on the other and as such as banking sector and real estate.

Globally, the real estate sector is one of the most portable venture of every economy and one of the indices of measuring economic growth of a society. The sector is so important and worthy of consideration by any government because it mirrors the economic viability and suitability of the economy and its poverty level.

However, it is difficult for one to know the exact impact or significance of real estate sector to gross domestic product (GDP) of a nation over the years largely because of the fact that there is no central market where daily transaction are recorded therefore this project is aimed at establishing the contribution of real estate sector to gross domestic product (GDP).    

1.3       AIM AND OBJECTIVE OF STUDY.

The aim of this study is to determine the contributions of real property related service to gross domestic product (GDP) Nigeria from 1999-2010.   

1.4      OBJECTIVES OF STUDY

The objectives of the study are:

a.           To highlight the percentage of degree of contribution of real property to gross domestic product (GDP) by means of extensive examination of income and benefit derivable from real estate investments in the country from 1999-2010.

b.          To ascertain of real properly investment his any significant influence on GDP of Nigeria.

c.           To determine the problem and challenges faced by real property such as litigations and provision of funds.         

1.5       RESEARCH QUESTION

The study tends to provide answers to certain question surrounding the topic, question such as

a.           To what extent is the percentage contribution of real property to GDP?

b.          Does real property has any significant influence on the GDP of Nigeria?

c.           Do you agree that there are problem and challenges faced by real property?

d.           Is there any possible recommendations based on the findings?     

1.6      SIGNIFICANCE OF THE STUDY

This study will enable us to know the contributions of real property investment to GDP, by means of clearly showing the percentage contribution of the sector to the nation’s economic growth. Thus, if will and the real estate investment analyses to know the significance to GDP from 1999-2010 in Nigeria.

It will also tend to provide a guide on ways of economic development of the nation and possible investment in/on real estate investments

Finally, the study will add to existing body of knowledge on the subject, and provide a suitable guide and reference to future enquiry on the subject.

1.7      SCOPE OF STUDY

This study is limited to the contributions of real property related services to GDP in Nigeria such as

a.           Real estate Brokerage

b.          Brokerage speciatties

c.           Property management

d.          Valuation

e.           Connseting    

f.                  Development and contribution and real estate investment.

1.8      LIMITATION OF STUDY

The major limitations of this study induced time financial constraints as well as vastness of the topic. It was not easy to get the materials for the literature, and financial constraints both to terms of transportation and stationary were also a factor.

Also the difficulty in obtaining information on contribution of real property GDP and lack of journals dealing on GDP. But despite all. The constraints efforts were made to given adequate treatment to the research work.