Evaluating The Perception of Real Estate Professionals and Buyers on The Economic Risks of Flood-Stigmatized Properties in Selected Communities of Ogoniland, Rivers State
DOI:
https://doi.org/10.64321/jcr.v2i4.46Keywords:
Flood-Stigmatized Properties, Real Estate Perception, Economic Risk, Ogoniland, Property Valuation, Flood Risk ManagementAbstract
Flooding has emerged as one of the most pervasive environmental challenges affecting property markets in Nigeria, especially in vulnerable regions like Ogoniland, Rivers State. This study investigates the perceptions of real estate professionals and property buyers regarding the economic risks associated with flood-stigmatized properties in four flood-affected local government areas: Khana, Gokana, Eleme, and Tai. The study aims to understand how repeated flooding influences market behavior, valuation practices, buyer preferences, and investment decisions. A mixed-methods approach involving structured questionnaires and semi-structured interviews was adopted to gather insights from 150 participants, including real estate professionals and active property buyers. Findings reveal a high level of awareness with perceived decline in property value, risk of financial loss for buyers, buyer unwillingness to invest in flood-prone areas, real estate disclosure practices, lack of institutional confidence in flood management; and concern regarding flood risks, with professionals adjusting valuation downward by 20–35% and buyers demonstrating significant aversion to flood-prone properties. Key economic risks identified include reduced market value, difficulty in accessing financing, increased insurance costs, increased maintenance costs, and prolonged vacancies. The study highlighted the urgent need for strategic policy interventions, improved flood management infrastructure, and better risk communication to restore confidence in real estate investment in the affected areas.
References
Adelekan, I. O. (2010). Vulnerability of Poor Urban Coastal Communities to Flooding in Lagos, Nigeria. Environment and Urbanization, 22(2), 433–450.
Atreya, A., Ferreira, S. and Kriesel, W. (2013). Forgetting the flood? An Analysis of the Flood Risk Discount Over Time. Land Economics, 89(4), 577–596.
Bin, O. and Polasky, S. (2004). Effects of Flood Hazards on Property Values: Evidence Before and After Hurricane Floyd. Land Economics, 80(4), 490–500.
Ede, C. (2021). Real Estate Market Responses to Flood Hazards in Port Harcourt Metropolis. Nigerian Journal of Environmental Sciences, 15(2), 45–56.
Eves, C. and Wilkinson, S. (2014). The Impact of Flooding on Residential Property Buyer Behavior: A Cross-Cultural Comparison of Australia and the UK. Journal of Flood Risk Management, 7(1), 1–12.
Ibem, E. O. and Aduwo, E. B. (2013). Assessment of Residential Satisfaction in Public Housing in Ogun State, Nigeria. Habitat International, 40, 163–175.
Iloeje, N. P. (2001). A New Geography of Nigeria. Longman.
Joseph, R., Proverbs, D. and Lamond, J. (2015). Assessing the Value of Properties in Flood-Risk Areas. Property Management, 33(3), 256–268.
Kasperson, R. E., Kasperson, J. X., Pidgeon, N. and Slovic, P. (2005). The Social Amplification of Risk. Earthscan.
Kreibich, H., Seifert, I., Merz, B. and Thieken, A. H. (2017). Flood Risk Perceptions, Driving Forces and Implications for Flood Risk Management in Europe. Journal of Hydrology, 456, 50–67.
Lamond, J. E. and Proverbs, D. G. (2006). Does the Price Impact of Flooding Fade Away? Structural Survey, 24(5), 363–377.
Nkwunonwo, U. C., Whitworth, M. and Baily, B. (2020). A Review and Critical Analysis of the Efforts Toward Urban Flood Risk Management in the Lagos region of Nigeria. Natural Hazards and Earth System Sciences, 20(10), 1237–1256.
Ologunorisa, E. T. (2006). Flood risk Assessment and Management in Nigeria: Perspective from the Niger Delta. International Journal of Environmental Studies, 63(2), 245–257.
Oloke, O. C., Simon, R. O. and Olayanju, M. I. (2013). Challenges Confronting Estate Surveying and Valuation Profession in Nigeria. International Journal of Business and Social Science, 4(2), 176–182.
Owusu-Manu, D. G., Edwards, D. J., Hosseini, M. R. and Obeng, F. K. (2021). Flood Risk Perception and Its Influence on the Purchase of Flood Insurance: A Study of Real Estate Practitioners in Sub-Saharan Africa. International Journal of Disaster Risk Reduction, 57, 102164.
Ujoh, F. and Kwaghsende, F. O. (2014). Flood Vulnerability Mapping of Makurdi Town, Nigeria. International Journal of Environmental Monitoring and Analysis, 2(4), 220–231.
UNEP. (2011). Environmental Assessment of Ogoniland. United Nations Environment Programme.
UN-Habitat. (2020). World Cities Report 2020: The Value of Sustainable Urbanization.
Zhang, L., Hwang, S. N. and Lin, T. C. (2010). Residents’ Preferences for Hurricane Risk Reduction Policies in Miami-Dade County. Natural Hazards Review, 11(1), 1–10.
Zhu, H. (2020). Property valuation and flood risk: Evidence from the real estate market in China. Journal of Real Estate Research, 42(1), 84–105.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Nkpite, B. S.
This work is licensed under a Creative Commons Attribution 4.0 International License.
