The Effects of Higher Education Institutions on Residential Property Development: Case of the University of Buea
Department: Management
No of Pages: 50
Project Code: MGT11
References: Yes
Cost: 5,000XAF Cameroonian
: $15 for International students
ABSTRACT
Emerging
trends and the development of higher education institutions such as
universities and colleges show an expansion of the student population in
Cameroon.
This
scenario tends to have an impact on the student housing market growth, due to
excessive demand from the students but also play an impact on residential real
estate development. The main objective of the study was to examine the effect
of Higher Education Institutions on residential property development in Buea.
Specifically,
the study sought to identify the types of residential properties found around
the University of Buea, to assess the relationship between residential property
development and the existence of the University of Buea and to examine the
challenges of constructing residential real estate around the University of
Buea.
The
study employed a descriptive research design to sample 150 respondents using a
structure questionnaire by means of purposively and simple random sampling
techniques. The study results revealed that major types of real estate
residential housing in close proximity to the University of Buea includes
Studious without toilet, Apartments and Guesthouses.
The
study revealed that the establishment of the University of Buea was a major
called for real estate development in the area. It was showed that the
establishment of the university of Buea that encourage most residential real
estate actors to construct their houses and trigger the high demand of real
estate residential houses value.
However,
it was also revealed that the presence of the university affects real estate
development as it was faced with challenges such as high taxes, difficulty to
access to finance, high cost of raw materials, frequent renovation cost, water
related issues, accessibility, electricity problems, congestion, pollution, and
theft.
It
was suggested that the government should provide adequate electricity supply
and clean drinking water in these areas so as to boast the development of the
municipality.
CHAPTER ONE
GENERAL INTRODUCTION
1.0.
Introduction
This chapter contains
the background to the study, the problem statement, the research questions, and
objectives of the study, research hypotheses, and operational definitions of
terms, scope of the study and the significance of the study.
1.1.
Background of the study
In recent years, there
has been a profound change in the environment in which higher institutions
operate. Over the past few decades, Higher Education Institutions have had to
cope with the dual problems posed by rapid expansion and a transformation in
the processes of funding.
Growth has meant that
the number of students has increased rapidly and that they have had to be
accommodated in an enlarged and diversifying tertiary system, (Macintyre,
2003). Higher education comprises all post-secondary education, training and
research guidance at education institutions such as universities that are
authorized as institutions of higher education by the state authorities.
It includes all the
activities a given country deems to be higher education – not only those that
take place within ordinary universities and graduate schools, but shorter term
education and training courses (polytechnics, junior colleges, and various
forms of technical specialty schools)that are 2-3 years in length, and even correspondence
courses that make use of information technology and are targeted at a broad
population of students.(Ramon-Yusuf, 2003).
(Babalola and Okediran, 1997) views university education as that which facilitates creation of knowledge and innovation for the overall socio-economic empowerment of the individual and community development. Higher education institutions may generate different sort of impacts in a neighbourhood.
The presence of a university in a derelict area may initiate the transformation of the entire neighbourhood through the action of development, regenerating houses in order to attract students, staff, and those providing support services to live nearby (Perry and Wiewel, 2005). More also, universities can also function completely apart from the surrounding neighbourhoods, ignoring social problems (Anamaria and Melchior, 2007).
Higher education
institutions are viewed as a magnet in the metropolitan areas that attracts
people and economic activity towards it (O’Flaherty, 2005). Anamaria and Melchior,
(2007), use two concepts to analyse the impact produced by the presence of
Higher Education Institution in an area: To include magnets and enclave.
The first concept used
to describe the impacts of large land owners such as the educational institutions
is the ‘Magnet’. In Urban terms, magnet represents a concept or metaphor which
describes a territory in the metropolitan area which attract people and
economic and development towards it.
Higher Education
institution can be qualified as magnet since they have power of attracting many
students, faculties and staff as well as business and institutional activities
to specified town in a region. Higher education institutions, when acting as a
magnet, besides attracting uses that promote urban and economic growth,
attracts activities regarded as damaging by particular groups in the society
(Anamaria and Melchior, 2007).
The second concept used
to describe the impact of large land owners such as the Universities is the
“enclave”. A new enclave represents a self-contained place or region of the
city, with uses or morphology different from the one of the surrounding
neighbourhood (Anamaria and Melchior, 2007).
According to (Perry and
Wiewel, 2005), a higher education institution has traditionally seen itself as
an enclave, “removed enough from the immediacy and demands of modern life to
produce the knowledge and information with which to better understand the
society”. Depending on the externality, the role of higher institutions as
magnet most times overcomes their features as enclaves.
Therefore, the concepts
of magnets and enclaves represent an important methodological tool in the
analysis of the impacts and externalities by the Higher education institutions
on their neighbourhoods (Anamaria and Melchior, 2007).
Higher institutions primarily acquire land and structures that
support their core mission or immediate growth demands, it is however not
uncommon for surrounding communities to criticize universities for their unresponsive
development policies or lack of a plan to mitigate negative spill over effects
(Sungu-Erylimaz ,2009).
For neighbourhood
residents, some of the major concerns relate to quality of life issues, such as
conversion of houses and other buildings to student occupancy; upward pressure
on rents; adaptation of shops and facilities to student markets; and increase
in traffic, noise, and parking problems (Harasta, 2008).
The residential real
estate sector of Cameroon in general and Buea Municipality in particular is
comparatively and more progressive than the other real estate sector. It claims
around 80% share of this sector (Cameroon report, 2015).
The residential real
estate sector in Cameroon as witnessed tremendous growth through development of
SIC, low cost houses in different parts
of the country, notably Douala, Yaoundé, Limbe as well as projection for
further construction in the other towns.
The major growth drivers
of the real estate sector are rapid developments of the cities in Cameroon and
rapid urbanisation process which support such developments. This leads to a
rise in real estate properties, especially houses. The municipality of Buea has
seen the growth in housing through the establishment of Higher education
Institution which has attracted population into the town of Buea.
In recent time, the
Cameroon government had shown a strong commitment to the growth of the higher
education sector by establishing more institutions especially universities and
other professional institutions and the liberalization of its ownership.
While this is the focus
of the government, little or no attention is given to the provision of
accommodation in the varsities to meet the rising student population which
comes about as a result of these higher education institutions.
As a result of this,
majority of students, staff and administrators from theses higher Education
institution take solace in other residential properties for alternative
accommodation. This demand has resulted in the establishment niche market
around these Higher Education Institutions.
For instance, close to
80% of students populations of Higher education institution are living in
privately rented accommodation. The result of this is a sharp increase in rent
since the available housing accommodation even in the rental market is not enough
to meet the demand.
In the past, houses were
completed by landlords or property investors, but today, Students struggle to
make payment even when such accommodation are yet to be completed. The
landlords and investors exploit this situation and rents are arbitrary fixed
and outrageous.
1.2.
Problem statement
The creation of the
University of Buea in 1992/93 and other institution that follows their
creation, has led to an influx of not only students but staff, administrators
and other people who came for either business purposes or investment. Since
shelter is considered as one of the most basic human needs that one cannot do
without.
Therefore those who have
been pull or push into Buea for various purposes such as business, education or
for investment find solace in various forms of residential properties within
the Buea municipality base on proximity to their area of interest.
Higher education
institution development has the possibility to effect on residential property
development in an area, they creates competition in the housing market and put
pressure on limited housing supply in an area. This scenario affects
residential property development in the area.
The establishment of the
University of Buea and other Institution that followed it creation Buea has
diverted real estate’s activities which were agriculturally base incline to
residential and commercial real estate investment. Therefore, this research is
aimed at assessing the effect of Higher Education Institutions on in
residential property development.
With the specific
objectives; to identify the types of residential properties found around the
University of Buea, to assess the relationship between residential property
development and the existence of the University of Buea, to examine the challenges
of constructing residential real estate around the University of Buea.
1.3.
Research questions
Based on the problems
identified, the study seeks to answer the following research questions
- What types of residential properties are found along the University of Buea?
- What is the relationship between residential property development and the existence of the University of Buea?
- What are the challenges of constructing residential properties around the University of Buea?
1.4.
Research objectives
1.4.1
Main objective
- The main objective of the study was to examine the effect of Higher Education Institutions on residential property development in Buea
- To identify the types of residential properties found around the University of Buea.
- To assess the relationship between residential property development and the existence of the University of Buea.
- To examine the challenges of constructing residential real estate around the University of Buea.
