Impact of inadequate maintenance practice on property investments in Lagos

REAL estate development which involves the commitment of huge capital resource is mostly held as an investment medium having the potential to generate attractive benefits which usually come in the form of income streams or capital gains. The physical condition of buildings and their associated facilities in the built environment plays a significant role in the measurement of housing price performance. The maintenance of a property’s physical structure ensures not only the potential for an investment to yield the highest possible returns over its useful life period but also the fulfilment of the ultimate function of providing the required satisfaction and comfort. The primary motive for property maintenance is to preserve the building to its initial condition in order to serve its desired purpose effectively. Unprecedented growth has emerged in Lagos following its former status as the capital of Nigeria. The growing urbanisation effect has introduced changes in the pattern of land use. Associated closely with these changes is the phenomenon of urban transformation.

Real estate development in Lagos is currently facing a process of rapid urbanisation accompanied with an outburst in population which have introduced pressure on existing public and private buildings and housing facilities. The need for higher income generation among the rural poor has informed the decision for massive migration to urban cities, leading to social and physicaltransformation of building structures. The appreciation of property value depends on a number of factors, including the existing state of physical condition and maintenance. In Nigeria, landlords have not paid keen attention to the upkeep of their properties. The poor attitude towards upkeep has impacted negatively on the commercial real estate capital markets, as against their foreign counterparts in the developed countries who enjoy lower depreciation with a corresponding higher property value. Nigerian Investors are more focused on expected returns with little or no attention paid to maintenance needs. Poor property management has resulted in the risk of property value degradation and depreciation. Most investors seem concerned with successes rather than failures and that has profoundly affected their ability to determine the true forms and characteristics of risk impacting their investment. Specific risk factors such as structural risk and the risk of unplanned obsolescence most times creates wide variation between actual return and expected returnx when not quickly identified and resolved. The risks inherent in property investment cannot be eliminated totally but can be minimised through proactive measures such as preventive planned maintenance involving good prediction strategy. Adequate management and care is demanded by every investment for best profits, but real estate necessitates extra managerial care and cost. Maintenance plays a crucial role in upholding the performance of building in order to minimise lifecycle costs and ensure environmental safety. Addressing management issues in property investment can be approached from sustainable global perspectives.

The efficiency of preserving property values and condition could be best achieved through the implementation of sustainable plans intended for the processes of smart cities. The preservation of building condition through adequate maintenance strategy is integral towards the optimization of property value in the real estate market. To resolve maintenance problems in Nigeria, property investment performance should be optimized through the consultation ofexperts such as estate surveyors and valuers for informed managerial decision regarding facilities management. Professionals in the built environment and government should devise efficient means of collaborating with the United Nations in order to facilitate international support towards adopting the sustainable development goal.

Finally, sustained partnership should be promoted between researchers in the built environment and the government in order to encourage the discovery of modern practical solutions that are energy-efficient and technology-driven towards the design, construction and subsequent maintenance of property investment