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Appropriateness of depreciation measurement in the cost method of property valuation in Lagos, Nigeria

Bello Ik, Ogunba Oa and Adegunle To
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Bello Ik: Department of Estate Management, Moshood Abiola Polytechnic, P.M.B. 22210, Abeokuta, Nigeria
Ogunba Oa: Department of Estate Management, Obafemi Awolowo University, Ile – Ife, Nigeria
Adegunle To: Department of Estate Management, Moshood Abiola Polytechnic, P.M.B. 22210, Abeokuta, Nigeria

E3 Journal of Business Management and Economics., 2015, vol. 6, issue 2, 017-026

Abstract: Valuation has been considered as an important tool for decision making in property transaction all over the world. This action requires that the valuers are expected to give reliable and consistent opinion of values. Unfortunately, this does not occur often in the estimation of depreciation in cost valuation in Nigeria. The aim of this paper is to evaluate the appropriateness of the depreciation in the cost method of valuation with a view to providing better information for the stakeholders in the built environment. Questionnaire were structured and distributed on registered estate surveyors and valuers firms in Lagos Metropolis where the head offices of the majority of estate surveying and valuation practititioners are accommodated. Stratified sampling technique was adopted in selecting firms within the districts of the study area. 154 questionnaires were distributed but 131 were retrieved for the purpose of analysis. Relative Importance Index method of analysis was adopted with the use of student T-test to determine the relationship between the depreciation generated by S-curve and the method found to be in frequent usage. The paper discovered no significant relationship. The P value (

Keywords: Valuation accuracy; Market values; standard; obsolescence; Property (search for similar items in EconPapers)
Date: 2015-06
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