Paradigm Shift in Investment Property Valuation Theory and Practice: Nigerian Practitioners’ Response.

Abstract

This paper examined the response of Nigerian property valuation professionals to observed shifts in valuation theory, valuation
construction process, firms’ structure and regulatory framework, over time (particularly in the UK from where Nigerian practice took its
root), with the aim of ascertaining the dynamism of the local practice and the extent to which it is keeping pace with international
standards and best practices. Structured questionnaire was used to elicit information from local practitioners. The study revealed
comparatively negligible shifts in valuation theory, valuation construction process and firms’ structure; while the regulatory framework
has witnessed remarkable shifts. The study provides a benchmark for gauging the development of real estate valuation in Nigeria in the
light of contemporary international standards and best practices. The results point the way to improving valuation practice in Nigeria, and
also revealed the extent to which such improvements are feasible. The study identified the academia, individual valuation firm, and the
Nigerian Institution of Estate Surveyors and Valuers (NIESV) as the major drivers of the required shifts in theory and practice. The study
also proffered the means whereby the required shifts can be fast-tracked including an overhauling of the training syllabus; creation of a
central database; and a stronger collaboration between the academia and the practitioners particularly in research and information
dissemination.