Incorporating Sustainability into Real Estate Valuation: the Perception of Nigerian Valuers

Abstract

The paper appraises the perception of real estate valuers’ of sustainability in real estate valuation in Nigeria. The study was based on a survey of one hundred and sixty estate surveyors and valuers who were asked, among others, to rate the significance of a range of sustainability features on the market value of a hypothetical property based on the social, economic and environmental features that constitute the triple bottom line of sustainability. The study presents evidence that, even in a developing country like Nigeria, there is already a growing awareness of the need to mainstream sustainability into real estate valuation practice though respondents tended to define real estate sustainability in terms of its social, rather than economic or environmental features. It is suggested that Nigerian valuers must improve on their present knowledge of sustainability to effectively account for all three features in their valuations. Investors, property occupiers, the government and estate surveyor and valuers (appraisers) were identified as the principal drivers of the sustainability crusade in the country.