An Estate Surveyor and Valuer Esv Stella Omoregbee .I , have giving reasons Why property valuation matters more than ever in Nigeria’s growing cities. She stated this yesterday in Abuja.
She disclosed that Nigeria’s cities are expanding at an unprecedented pace. “The rapid population growth, rural–urban migration, infrastructure development, and rising investment activity are reshaping the urban landscape. “In cities such as Lagos, Abuja, and Port Harcourt, land and property values are changing faster than ever before. In this dynamic environment, accurate and professional property valuation has become more critical than at any other time”.
She explained that property valuation is not merely an academic or professional exercise; it is the foundation upon which major economic, legal, and investment decisions are made.
When valuation is done poorly or unprofessionally, the consequences are often far-reaching.
Valuation as the Backbone of Urban Property Markets
She stated that at its core, property valuation provides an informed opinion of value based on market evidence, location, use, and prevailing economic conditions.
This opinion guides decisions on buying, selling, leasing, taxation, compensation, and mortgage lending.
She maintained that in fast-growing cities, where demand often outstrips supply, property prices can fluctuate significantly within short periods. Without proper valuation, property owners may overprice assets and struggle to attract buyers or tenants, while investors risk paying far above true market value.
Implications for Investors and Financial Institutions
She reiterated that for investors, accurate valuation is essential for assessing risk and return. Real estate investments involve substantial capital, and errors in valuation can result in financial losses, poor portfolio performance, or failed projects.
“Financial institutions are even more exposed. Banks rely heavily on valuation reports when granting mortgage loans and using properties as collateral. “Overvaluation exposes lenders to credit risk, while undervaluation restricts access to finance for property owners and developers. In a growing urban economy, weak valuation practice can undermine confidence in the entire financial system”, she stated .
Government, Infrastructure, and Compensation Challenges
She noted that urban expansion inevitably brings government intervention through road construction, urban renewal, and infrastructure development.
These projects often require compulsory land acquisition, making property valuation central to compensation assessment.
She also said that disputes frequently arise when affected property owners feel that compensation does not reflect true market value. Inconsistent or poorly justified valuations fuel mistrust, delay projects, and lead to prolonged litigation. In rapidly developing cities, where land values appreciate quickly, outdated valuation approaches only worsen these conflicts.
Impact on Housing Affordability and Taxation
According to her accurate valuation also plays a role in housing affordability and property taxation. When property values are improperly assessed, tax systems become inefficient and unfair. Some property owners may be overtaxed, while others are under-assessed, reducing government revenue needed for urban services.
“For tenants, inflated or speculative valuations often translate into higher rents, worsening the housing affordability crisis in major cities”.
Professionalism Matters More Than Ever
Omoregbee .I stresses that as cities grow more complex, the margin for error in valuation narrows. Professional Estate Surveyors and Valuers are trained to analyze market data, apply appropriate valuation methods, and exercise sound professional judgment. Their role is especially vital in environments where market information is imperfect and prices are volatile.
The growing scale of urban development means that valuation errors today have much larger economic and social consequences than in the past.
The Way Forward
She said to support sustainable urban growth, Nigeria must strengthen valuation practice through better market data, continuous professional training, and improved land information systems. Public awareness is also essential—property owners, investors, and institutions must understand the value of engaging qualified professionals rather than untrained intermediaries.
Conclusion
She emphasized that
Nigeria’s growing cities present enormous opportunities, but they also demand higher standards of professionalism and accountability. Property valuation now sits at the heart of urban development, investment security, and social equity.
As cities continue to expand, getting valuation right is no longer optional, it is essential for stable, inclusive, and sustainable urban growth.
