Iroham, C.O. and Oni, A.S and Okagbue, H. I. and Emetere, Moses and Oluwunmi, Adedamola O and Durodola, O. D. and Ajibola, M. O. and Ogunnowo, O. E. and Udonquak, U. M. (2020) Viability of residential properties in Ota, Ogun state Nigeria using modified break-even valuation technique. In: 4th International Conference on Science and Sustainable Development, 2021, Online.
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Abstract
Viability appraisal as a veritable tool to guide investors of proposed projects could either be carried out through any of deterministic or probabilistic approach. Both approaches with varied types of techniques have been criticized but still have their relevance in determining the viability of any given project based on required objectives. A review of earlier works on viability appraisal was carried out including that of the Nigerian experience. Observation and required measurements in the property market of the study area, Atan-Ota at Sokoto Road to be precise that lies and situates between latitude 60 40‘ 29.5716‘‘ and longitude 30 11‘ 52.9908‘‘. Amongst all viability techniques, the break-even viability appraisal technique was adopted for this study based on cost maximization so as to enable investors take decision on the barest minimum production level. The break-even point technique though modified using the Net Present Value (NPV) was utilized in the study area on three residential property types readily purchased. They are the 2 bedroom flat, 3 bedroom flat and 4 bedroom bungalow. It was revealed that the 3 bedroom flat is most viable as it will require the sales of 13.03 units to break-even while 2 bedroom flats will require the sale of 14.69 units to break even. The 4 bedroom bungalow will however require the sales of 17.17 units to break-even. The study thereby recommends that investors focus more on the 3 bedroom housing units in the study area for easiest attainment of the break-even point.
| Item Type: | Conference or Workshop Item (Paper) |
|---|---|
| Uncontrolled Keywords: | Break-even point, Residential property, Viability, Nigeria, NPV |
| Subjects: | Q Science > QH Natural history Q Science > QH Natural history > QH301 Biology |
| Divisions: | Faculty of Medicine, Health and Life Sciences > School of Biological Sciences |
| Depositing User: | nwokealisi |
| Date Deposited: | 01 Jun 2023 13:29 |
| Last Modified: | 01 Jun 2023 13:29 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/16965 |
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